HRD Corp 15% Levy Deduction: What It Is and How to Avoid It (2026)
The March 2025 policy affects all Malaysian employers with an unused HRDF levy balance above RM50,000 and a training utilisation rate below 50%. Here is everything you need to know — and exactly what to do.
What is the HRD Corp 15% levy deduction?
HRD Corp implemented a 15% deduction on unused levy balances from March 2025. Employers are affected if their balance exceeds RM50,000 AND their training utilisation rate falls below 50% of annual contributions. The 15% is deducted from the excess unused portion and pooled into HRD Corp's industry training fund. To avoid the deduction, employers must bring utilisation above 50% by submitting grant applications for approved training programmes before HRD Corp's assessment date. Log in to e-TRiS to check your current balance and utilisation rate.
Are You Affected by the HRD Corp Levy Deduction?
The deduction applies only when both of the following conditions are met at the same time. If only one condition applies, you are not currently at risk.
Levy balance exceeds RM50,000
Your accumulated unused HRDF levy balance in e-TRiS is above RM50,000. Employers who have been contributing for several years without actively claiming grants are most likely to hit this threshold.
Training utilisation is below 50% of annual contributions
The total value of approved training grants claimed in the assessment year is less than 50% of your annual levy contributions. For example, if you contribute RM120,000 per year, you must claim at least RM60,000 in approved training to stay above the threshold.
If your balance is below RM50,000 OR your utilisation rate is already above 50%, no deduction will be made. Focus on training utilisation only if both conditions apply.
How the 15% Levy Deduction is Calculated — Worked Example
The deduction is not applied to your entire balance. It targets only the unused amount that exceeds the 50% utilisation threshold. Here is a clear example:
| Item | Amount |
|---|---|
| Annual levy contributions | RM120,000 |
| Current unused levy balance | RM80,000 |
| Training claimed this year | RM30,000 (25% utilisation) |
| Required utilisation (50% of RM120,000) | RM60,000 |
| Training shortfall | RM60,000 − RM30,000 = RM30,000 short |
| Unused excess above threshold | RM80,000 − RM60,000 = RM20,000 excess |
| 15% deduction applied to excess | 15% × RM20,000 = RM3,000 deducted |
*This is an illustrative example. The exact deduction amount depends on your annual contributions, current balance, and approved training claims for the assessment period. Refer to the official HRD Corp notice for precise calculation methodology.
How to Avoid the HRD Corp 15% Levy Deduction — 5 Actionable Steps
Monitor your levy balance monthly via e-TRiS
Log in to e-TRiS at etris.hrdcorp.gov.my at least once a month to track your levy balance and utilisation rate. Set a recurring calendar reminder on the first working day of each month. Knowing your numbers in advance gives you time to act before HRD Corp conducts its assessment.
Submit SBL-Khas applications for external training
SBL-Khas is the fastest HRDF grant scheme — applications are auto-approved with no prior approval needed. Submit on e-TRiS before or on the training start date. Enrol your employees in public programmes from registered providers immediately to push your utilisation rate above the 50% threshold.
Run in-house training programmes
In-house programmes allow you to train your entire workforce at once, maximising the total training hours claimed. Contact HRD Corp-registered providers to arrange a customised programme within 2–4 weeks. Popular in-house topics include leadership, communication, safety, and industry-specific technical skills.
Train multiple employee groups simultaneously
Do not limit training to one department. Send staff from HR, operations, sales, and finance to separate programmes at the same time. Parallel training across departments rapidly increases your total claimed hours and accelerates your utilisation rate toward the 50% target.
Engage multiple registered providers urgently
If your balance is approaching the RM50,000 threshold and your utilisation is low, contact 3–5 HRD Corp-registered providers simultaneously. Ask about immediate public programme slots or fast-track in-house arrangements. Providers experienced with urgent utilisation cases can often mobilise within 1–2 weeks.
Fastest Training Types to Claim Under HRDF
If you need to raise your utilisation rate quickly, these training types offer the fastest path from enrolment to approved claim.
| Training Type | Typical Approval Time | SBL-Khas Claimable | Notes |
|---|---|---|---|
| Public programmes (SBL-Khas) | 3–5 working days | Yes | Widest availability; immediate enrolment at most providers |
| Soft skills workshops | 3–5 working days | Yes | Communication, leadership, time management — run weekly in KL, PJ, Penang |
| Digital skills training | 3–5 working days | Yes | Excel, data analytics, digital marketing — many public slots available |
| Safety & compliance training | 3–5 working days | Yes | OSH, HIRARC, fire safety — mandatory training that counts toward utilisation |
| In-house workshops | 2–4 weeks (SBL) | Yes (if via registered provider) | Customised to your team; can train all employees at once for maximum utilisation |
Frequently Asked Questions
What is the HRD Corp 15% levy deduction?
HRD Corp implemented a 15% deduction on unused levy balances starting March 2025. Employers whose levy balance exceeds RM50,000 AND whose training utilisation rate falls below 50% of their annual contributions will have 15% of their excess unused balance deducted. The deducted funds are pooled into HRD Corp's industry training fund for sector-wide programmes. The policy was introduced to encourage employers to actively use their accumulated levy rather than letting it sit idle.
How do I know if I'm affected by the 15% levy deduction?
You are at risk if your HRD Corp levy balance exceeds RM50,000 AND you have used less than 50% of your annual levy contributions for approved training. Log in to e-TRiS to check your current balance and utilisation rate. HRD Corp sends advance notice before deductions are made. If your balance is approaching the threshold, begin submitting grant applications immediately to bring utilisation above 50%.
How can I avoid the HRD Corp 15% levy deduction?
To avoid the deduction: (1) Monitor your levy balance monthly via e-TRiS. (2) Submit training grant applications to bring utilisation above 50% of annual contributions. (3) Use the SBL-Khas scheme for quick-approval external training — approval takes 3–5 working days. (4) Consider in-house training programmes which can be registered and claimed quickly. (5) Train multiple employee groups simultaneously to maximise utilisation. HRDF-registered providers can often fast-track programme registration for employers needing to utilise their balance urgently.
What training can I claim quickly to avoid the HRDF levy deduction?
The fastest types of training to claim are public programmes from registered providers under SBL-Khas — approval is typically 3–5 working days. Soft skills, digital skills, and safety programmes are widely available as public programmes with immediate enrolment. In-house workshops can also be arranged within 2–4 weeks. Contact multiple registered providers simultaneously to compare availability and pricing if you need to utilise your balance urgently.
Find HRDF-Registered Providers to Utilise Your Levy
Browse our directory of HRD Corp-registered training providers across Malaysia. All offer SBL-Khas eligible programmes — many can mobilise within 1–2 weeks for urgent utilisation needs.
Related Resources
Policy effective: March 2025. Last verified: January 2026