What's changed
HRD Corp has rolled out several regulatory updates that affect how Malaysian employers apply for training grants, pay their levy, and submit claims in 2026.
The most significant is Circular 2/2026, which revises the training grant application requirements for all levy-based training schemes — namely SBL (Skim Bantuan Latihan) and SLB (Skim Latihan Bersama). According to the source, any grant application built on the previous requirements risks being returned or rejected, so employers and training coordinators are advised to review the circular in full before submitting new applications.
Separately, HRD Corp has granted registered employers in the Education industry a 12-month levy payment exemption covering January to December 2026. Because no new levy will accumulate for these employers during the exemption period, any training grants they apply for in 2026 will need to draw from existing carry-forward levy balances rather than fresh contributions.
Employers outside the Education industry are not affected by this exemption and remain fully liable to pay their monthly levy by the 15th of each month, as usual.
In addition, a January 2026 update to the Approved Cost Ceiling (ACM) has revised the cost caps used across training claim categories. Claims submitted using pre-2026 rates may be adjusted downward to match the new ceilings.
Why this matters for employers
These changes affect three separate parts of the levy and grant process at once — grant application requirements, levy liability, and claim cost ceilings — so employers are encouraged to check each area separately rather than assume last year's process still applies.
Employers in the Education industry should verify their registered industry code with HRD Corp and confirm how the exemption applies to their existing levy balance before planning 2026 training budgets.
All other employers should continue their normal monthly levy payment schedule, as the exemption does not extend beyond the Education industry.
Anyone preparing a training grant claim for 2026 should also revisit budgeted figures against the updated ACM rates, since claims based on older cost ceilings may be adjusted down when processed.
Trainer accreditation still required
The source also reiterates that trainer accreditation under HRD-TDF (HRD Corp's Trainer Development Framework) remains a requirement for claims to be processed. Employers and training providers should confirm that trainers engaged for HRD Corp-funded programmes hold valid, active accreditation before finalising bookings or contracts.
What employers and training providers should do next
Confirm your organisation's registered industry code in e-TRiS, particularly if you operate in or near the Education sector, to determine whether the levy exemption applies to you.
If you are not in the Education industry, continue making levy payments on schedule — the exemption described here does not apply to your organisation.
Before submitting any new SBL or SLB grant application, review Circular 2/2026 to ensure the application meets the current requirements.
Recalculate training budgets and claim estimates against the January 2026 ACM cost ceilings rather than prior-year rates.
Verify that any trainers involved in HRD Corp-funded training hold current HRD-TDF accreditation.
Source: HRD Corp Employer Circular 01/2026 (Education levy exemption) + Circular 2/2026
Frequently Asked Questions
Which employers are exempt from paying the HRD Corp levy in 2026?
According to the source, HRD Corp has granted a 12-month levy payment exemption specifically to registered employers in the Education industry, covering January through December 2026. Employers in other industries remain fully liable for monthly levy payments.
Can Education-industry employers still apply for training grants in 2026 if they are exempt from paying levy?
Yes, but since no new levy will accumulate for exempt employers during 2026, any training grants applied for during this period must be funded from existing carry-forward levy balances rather than new contributions.
Does Circular 2/2026 affect all training grant schemes?
The source states that Circular 2/2026 revises application requirements for levy-based training schemes, specifically SBL and SLB. Employers using these schemes should review the circular before submitting new applications, as applications based on previous requirements risk being returned or rejected.
Will my training claim amount change under the new ACM rates?
Possibly. The source notes that the January 2026 ACM update revised cost ceilings across training categories, and claims submitted using pre-2026 rates may be adjusted downward to reflect the new limits.