HRDF Expanding the Coverage of PSMB Act 2001
The Human Resources Development Fund (HRDF) is expanding the coverage of the Pembangunan Sumber Manusia Berhad Act 2001 (PSMB Act 2001), with effect from April 1 2017, by streamlining its eligibility criteria to Malaysian employers across all sub-sectors within the manufacturing, services, mining and quarrying sectors that employ a minimum of 10 local employees.
Any employer who is convicted for not registering with PSMB may be fined up to an amount not exceeding RM10,000 or an imprisonment for a period not exceeding one year or both (Section 13 (2)).
Section 14(1) of PSMB Act 2001 stipulates that there shall be paid by every employer to whom the PSMB Act 2001 applies, a HRD levy in respect of each of his employees at the rate of one per centum (1%) of the monthly wages of the employee.
Section 15(2) of PSMB Act 2001 stipulates that there shall be paid by employer a HRD levy in respect of each of his employees at the rate of 0.5 percentum of the monthly wages of the employee (applicable to employer who opts to be registered).
HRDF pointed out that it was the duty of the eligible employers to pay HRD levy on each of its local employees at the rate of one per cent of their total monthly wages.
“These employers must pay the respective levy from the date of liability under Regulation 7 of these Regulations Human Resources Development Board (Registration of Employers and Payment of Levy) Regulations 2001, which states: ‘An employer who is liable to pay the levy in respect of each employee shall pay those levies for the first and subsequent month’s wages commencing from the date the employer becomes liable’.”
HRDF also stated that the effective date of the expansion of the PSMB Act 2001 coverage, affecting the coordination number of local employees to 10 persons, is for the following sub-sectors – namely all those within the manufacturing sector; all within the mining and quarrying sector; and below sub-sectors within the services sector such as food and beverage, hypermarkets, supermarkets and department stores.
“Thus, employers who are affected by the expansion of the PSMB Act 2001 beginning April 1 must submit their respective Employer Registration Form (Form 1) no later than 30 days from the mentioned date.
“However, with the implementation of the registration grace period, employers are given the flexibility to register their company over a period of six months (April 1 to Sept 30) without being charged any levy arrears and/or interest.”
Employers covered by the PSMB Act 2001 are required to complete the Employer Registration Form (Form 1) and Employer Information Form (Form 1A).
These forms can also be downloaded via HRDF’s official website www.hrdf.com.my, where more information can also be found.
2001 PSMB Act_latest admendment 01.04.2017 (En).pdf