How To Claim HRD Corp Levy For Training In Malaysia

If your company has ever sat through a training session and then wondered whether it could claim back some of the cost, the answer is very likely yes — provided you’re registered with HRD Corp and the course ticks the right boxes. Yet a surprising number of Malaysian employers either don’t claim at all, or claim incorrectly and get knocked back. Given that the levy is money your business has already paid in, it’s worth understanding how the process actually works.

This guide walks through registration, eligibility, the claim process itself, and the mistakes that most commonly trip employers up.

What Is HRD Corp Levy and Who Needs to Register?

The Human Resource Development Corporation, better known as HRD Corp, collects a mandatory levy from employers in specific sectors as a percentage of each employee’s monthly wages. The idea behind it is straightforward: businesses pay into a shared pool, and that same pool funds the training their own staff go on to receive.

Registration is compulsory for employers in sectors covered under the Pembangunan Sumber Manusia Berhad Act, generally once a company employs ten or more Malaysian staff (five or more in some categories, with a voluntary option for smaller firms). Once registered, the levy is deducted monthly and held under the company’s account, ready to be claimed against approved training activities.

A lot of employers register, pay the levy for years, and simply never use it. That’s effectively leaving a training budget on the table.

Benefits of Claiming Levy for Your Business

Beyond the obvious — getting money back that you’ve already contributed — claiming levy has a few knock-on advantages worth mentioning.

It makes upskilling genuinely affordable. Courses that might otherwise sit in the “nice to have” pile suddenly become realistic, because a large chunk of the cost is offset. It also encourages a more structured approach to training generally, since claiming requires some planning around what courses are needed and when. And for HR teams, a well-managed levy claim process is a tangible way to show leadership that the training budget is being used efficiently rather than just spent.

There’s also a retention angle. Employees who see their company actively investing in their development, rather than treating training as an afterthought, tend to stick around longer. It’s a small thing, but it compounds.

Step-by-Step HRD Corp Claim Process

The process itself isn’t complicated once you’ve done it a couple of times, though it does need to happen in the right order.

Step 1: Confirm your SBL Khas or SBL eligibility. Most employers claim through the SBL Khas scheme, where HRD Corp pays the provider directly, or the standard SBL scheme, where the employer pays upfront and claims reimbursement afterwards. Decide which route suits your cash flow before booking anything.

Step 2: Apply for approval before the training starts. This is the step people most often get wrong. Applications need to go in through the HRD Corp e-TRiS portal before the course begins, not after. A course that’s already been delivered generally can’t be claimed retroactively.

Step 3: Select an approved course and provider. The training needs to be run by a registered training provider and, in most cases, delivered by a certified trainer. Checking this before you commit saves a lot of back-and-forth later.

Step 4: Attend and complete the training. Attendance records, signed forms, and any assessment results should be kept carefully — these all get requested during the claim.

Step 5: Submit the claim with supporting documents. Once training is complete, submit the claim through e-TRiS with the invoice, attendance sheet, and training report attached. HRD Corp typically processes these within a few weeks, assuming everything’s in order.

Step 6: Track the claim status. The portal allows you to follow progress, and it’s worth checking in if a claim sits pending for longer than usual rather than assuming it will sort itself out.

What Types of Courses Are Claimable?

HRD Corp covers a genuinely wide spread of training, not just technical skills. Leadership and soft skills programmes, compliance and safety training, and technical or digital skills courses — including data analytics and software training — are all generally claimable, provided the provider and course are registered correctly.

Digital skills training has become a particularly common claim category over the past few years, as more Malaysian businesses push their teams toward better use of tools like Power BI, Excel, and the wider Microsoft ecosystem. A microsoft 365 training programme, for instance, is the kind of practical, business-relevant course that fits neatly within claimable categories, since it directly improves day-to-day productivity rather than being a generic soft-skills add-on.

It’s worth checking the specific course code or provider registration before assuming something qualifies, since not every training activity automatically counts — generic internal briefings or non-structured sessions usually won’t.

Public Training vs In-House Training for Levy Claims

Employers often assume levy claims only apply to public, open-enrolment courses, but that’s not the case. In-house training, delivered specifically for your team either on-site or virtually, is just as claimable, provided it’s run through a registered provider and properly documented.

In-house training actually tends to work better for claim purposes in some ways, since the content, attendance, and outcomes are all tied to a single, clearly defined session rather than a mixed group of attendees from different companies. It also means the course can be tailored to your actual systems and data, which tends to produce better learning outcomes than a generic public class covering material half your team won’t use.

Public courses still have their place, particularly for smaller teams or individual employees who don’t need a full customised session. The right choice really comes down to team size, budget, and how specific your training needs are.

How to Choose the Right Training Provider

Not every HRDF training provider is equal, and this is where claims most often go sideways. A provider needs to be properly registered with HRD Corp, and ideally has a track record of delivering the specific type of course you’re after rather than a broad, generic catalogue.

Look for a provider that can show previous corporate clients, clear course outlines, and trainers with relevant industry experience rather than just a certificate to teach. It’s also worth asking directly whether they handle the e-TRiS paperwork on your behalf or whether that falls entirely on your HR team — this varies more than people expect, and it affects how much admin you’re taking on.

Ted Learning is one option for businesses in Malaysia looking for HRDF training that’s properly documented and genuinely practical, with a focus on tools teams actually use day to day rather than theory-heavy sessions. If you’re searching for the best HRDF training provider in Malaysia, it’s worth comparing a few on responsiveness and course relevance before committing, rather than picking based on price alone.

Common Mistakes That Lead to Claim Rejection

A few simple slips account for almost every rejected claim, and almost all of them come down to timing and paperwork:

Applying after training has already started: This is where most employers get caught out. HRD Corp requires e-TRiS grant approval before the course begins — there are no retroactive approvals once a session is underway.
Missing or incomplete documentation: Submitting an application without signed attendance sheets, clear tax invoices, or proper digital log reports will hold up your claim or get it rejected outright.
Booking unaccredited providers or trainers: Booking a course purely on price without checking credentials is an easy trap. Both the training organisation and the specific trainer must hold active HRD Corp accreditations.
Waiting too long to submit claims: Leaving claim submissions until months after the course ends — or right at the end of the financial year — often results in unnecessary administrative delays and portal backlogs.

Conclusion

Claiming your HRD Corp levy doesn’t need to be a head-scratcher once you get the sequence down: register your company, submit for approval before the course starts, pick an accredited provider, and keep your attendance logs organized.

For most Malaysian businesses, the challenge isn’t navigating the portal—it’s simply letting valid levy sit idle. Since those funds are already deducted every month, utilizing them is one of the smartest ways to upskill your team without stretching your operational budget.

FAQs

How much levy does my company need to pay HRD Corp?

The amount of levy depends on the size of the company and the industry. The companies employing 10 or more Malaysian employees have to pay 1% of their monthly basic salaries. Companies with 5 to 9 employees are free to register themselves on a voluntary basis paying a 0.5% levy.

Can I claim for training that has already taken place?

There is no such facility provided by HRD Corp. You have to apply for the grant on the e-TRiS portal before taking the training program.

Is online or virtual training eligible for HRD Corp claims?

Yes, online training programs are 100% claimable under the condition that it has to be given by a registered training provider with proper log-in system details.

What happens to unused levy if we do not claim it?

Unclaimed funds, or your levy, eventually expire or get redirected under HRD Corp rules.

Can small businesses with fewer than 10 employees register for HRD Corp?

Yes, smaller organisations can be eligible for voluntary registration. This means that your company will be able to take advantage of courses like Power BI hands-on courses in Malaysia before meeting the minimum criteria.