What is HRDC and How Does the Claim Process Work?
HRDC Logo. Credit: TalentStore
If you’ve been in the workforce, chances are you’ve heard of HRDC – but what is that?
The Human Resource Development Corporation (HRDC) operates under the Ministry of Human Resources Malaysia and is governed by the Pembangunan Sumber Manusia Berhad Act 2001. This corporation is responsible for managing the levy funds used to upskill the Malaysian workforce.
Now, legally, it’s mandatory for companies with 10 or more employees to become a registered employer. Once registered, you contribute a small monthly levy to your levy fund (1% of wages monthly for ≥10 employees). Here’s where it gets exciting – the company can claim some or all of this back if they have sent their employees for HRDC-claimable training and upskilling. That’s where the claims process comes into play – getting compensation for previously approved training costs you’ve paid for.
However, some employers are still unsure about the HRDC claims process and may lose out on unclaimed levy funds. In this guide, we’ll show you how to submit your claims and explain what happens when you never utilise your levy fund.
📌 Read also: Let’s Talk HRDC: Debunking Common Misconceptions
Person filling out a form. Credit: Pexel
5 Steps for Claim Submission
Step 1: Log In to eTRiS
- Go to https://www.hrdcorp.gov.my
- Log into the Employer’s eTRis account
- Navigate to Application > Training Grant
Step 2: Apply for the Training Grant
Select your type training:
- SBL – In-house or external training
- SLB – Group training with other employers
Fill in:
- Course name, outline, and venue
- Trainer & participant details
Upload:
- Course schedule
- Trainer profile
- Quotation/proposal
*Apply at least 1 day before training starts.
Step 3: Conduct the Training
During the training:
- Record signed attendance
- Take photos/videos as proof
- Provide certificates (if needed)
Step 4: Submit the Claim
After training:
Go to Application > Claim Submission in eTRiS
Upload:
- Claim form
- Invoice/receipt
- Signed attendance
- Training photos
- Certificates (if any)
Step 5: Wait for Approval & Payment
HRD Corp will review your documents. If approved, reimbursement goes directly to your company’s account.
Good To Know
Did you know: 15% of your levy fund may be deducted if you’ve never utilised it in the previous or current year.
This one-time deduction contributes to the Program Latihan MADANI (PLM) – a government initiative introduced in 2023. The goal is to use these underutilised funds to expand and develop training programmes for micro-SMEs and underserved communities like the Orang Asli, B40, OKU, senior citizens, retirees, and current and former prisoners.
What is this deduction?
The 15% deduction is only applicable if:
- Unused levy is ≥ RM50,000
- Levy utilisation rate is < 50%
This is only applies to employers that satisfy both criteria:
Program Latihan MADANI (PLM). Credit: HRD Corp
Employer | Unused Levy | Levy Utilisation Rate (%) | 15% Deduction |
A | RM80,000 | 40% | ✅ |
B | RM30,000 | 20% | ❌ |
C | RM100,000 | 60% | ❌ |
Note: Only approved claims count as “utilised”. Training that’s being planned or booked doesn’t count
Claim Your HRDC Levy Today!
Submitting a claim doesn’t have to be complicated – by following the guide above, you can utilise valuable funding to upskill your own employees. Once you understand the process, it’s simpler than you think. Take action now: Plan early, submit on time, and make the most of your levy contributions.