Investing in employee training improves productivity, innovation, and business growth. But training costs can be high this is where the Human Resources Development Fund (HRDF) comes in. If your company contributes to HRDF, you may claim reimbursements for training expenses. But does your company qualify?
Understanding HRDF eligibility is key to making the most of this government initiative. This guide explains who qualifies, how to claim, and common reasons for rejection, with a special focus on team building HRDF claimable training.
What is HRDF?
HRDF is a Malaysian government fund managed by Pembangunan Sumber Manusia Berhad (PSMB). It was set up to encourage employers to train their workforce. Under the PSMB Act 2001, certain businesses must contribute a levy to HRDF. In return, they can claim reimbursements for approved training programmes.
If your company is eligible, HRDF helps reduce training costs and ensures your employees gain relevant skills. But before you submit a claim, it’s important to check if your company meets the requirements.
Who Can Claim HRDF?
Not all businesses need to contribute. HRDF applies mainly to companies in specific sectors with a minimum number of employees.
1. Sectors Covered by HRDF
HRDF contributions are mandatory for companies operating in:
- Manufacturing
- Services
- Mining and Quarrying
These sectors are outlined in the First Schedule of the PSMB Act 2001. However, not all businesses within these sectors qualify. Some sub-sectors are exempt. Your company must check its MSIC (Malaysia Standard Industrial Classification) code to determine eligibility.
2. Minimum Employee Requirement
HRDF contributions depend on workforce size:
- 10 or more employees ? Mandatory (Contribute 1% of total monthly wages)
- 5 to 9 employees ? Optional (Can contribute 0.5% of total monthly wages)
- Fewer than 5 employees ? Not required to contribute
Even if your company voluntarily contributes, you must be registered with HRDF to claim reimbursements.
Does Your Company Qualify for HRDF Claims?
If your company contributes to HRDF, you may claim training reimbursements. However, HRDF has strict conditions where companies must meet the following criteria:
1. HRDF Registration
Your company must be registered with HRDF. If you haven’t registered, you cannot claim. Contributions must also be up to date. If payments are overdue or incomplete, your claims may be rejected.
2. Approved Training Programmes
HRDF does not cover every type of training. The training provider and programme must be approved. HRDF typically funds:
- Technical Skills Training – Industry-specific courses for hands-on skills
- Soft Skills Training – Leadership, teamwork, and communication development
- Digital & IT Skills – Cybersecurity, coding, and AI training
One of the most popular HRDF claimable programmes is team building HRDF claimable training. This type of training helps improve teamwork, collaboration, and workplace culture.
3. Employee Eligibility
Not all employees can be funded through HRDF. Your claims apply only to:
- Full-time Malaysian employees
- Employees listed in your company payroll
Foreign workers, part-time staff, and freelancers do not qualify.
4. Training Methods That Qualify
HRDF supports different training formats, including:
- In-house training – Conducted within your company
- Public training – Employees attend an external programme
- Online learning – Digital courses from HRDF-approved providers
To claim, you must prove that employees attended and completed the course.
What is Team Building HRDF Claimable Training?
Team building HRDF claimable training focuses on improving:
- Teamwork and collaboration
- Problem-solving and decision-making
- Workplace communication
Companies that invest in team building HRDF claimable training can strengthen their teams while benefiting from HRDF reimbursements. Many organisations also include communication skill training as part of their team building HRDF claimable programmes to improve workplace interactions.
How to Claim HRDF Funds?
Once your company is eligible, follow these steps to claim reimbursements:
Step 1: Apply for Training Approval
Before training begins, submit an online application through the eTRiS system. HRDF will review your application and grant approval. Training without prior approval cannot be claimed.
Step 2: Conduct the Training
Once approved, conduct the training as planned. Ensure:
- Employees attend the full programme
- Trainers are qualified and HRDF-approved
- Records are kept properly
Save all training-related documents, including attendance lists, receipts, and certificates.
Step 3: Submit Your Claim
After training, submit a claim through eTRiS. You need to upload:
- Invoices and receipts – Proof of payment
- Attendance records – List of employees who attended
- Training materials – Course outline and trainer details
Claims must be submitted within six months after training. Late claims will be rejected.
Step 4: HRDF Verification & Reimbursement
HRDF will review and verify your claim. Once approved, funds are reimbursed to your company. Processing time depends on claim volume and completeness of documents.
Important Reasons for HRDF Claim Rejection
Even if your company qualifies, claims can be denied due to errors. Here are the most common mistakes:
1. Late Submission
HRDF claims must be submitted within six months after training. If you miss this deadline, your claim will not be processed.
2. Non-Approved Training
Not all courses qualify. Only HRDF-approved training programmes and providers can be claimed. Check HRDF’s Training Provider Directory before registering.
3. Incomplete Documentation
Missing or incorrect documents can lead to claim rejection. Ensure you submit:
- Receipts and invoices – Proof of training payment
- Attendance records – Evidence of employee participation
- Trainer profiles – Details of course instructors
4. Unpaid HRDF Levies
Your company must be up to date with HRDF levy payments. If contributions are outstanding, your claims will not be approved.
5. Claiming for Ineligible Employees
Only Malaysian full-time employees qualify. If you include foreign workers or part-timers, HRDF will not reimburse those costs.
Is Online Training HRDF Claimable?
Yes! HRDF allows claims for online training as long as:
- The course is conducted by a registered training provider
- The training follows HRDF guidelines
- Employees complete the course and receive a certificate
Online learning is a great way to upskill employees without travel or accommodation costs.
Maximising HRDF Benefits
To make the most of HRDF, follow these best practices:
- Plan Ahead – Identify training needs early and apply for approval in advance.
- Choose Approved Courses – Only register employees for HRDF-eligible training.
- Maintain Accurate Records – Keep all receipts, invoices, and attendance lists.
- Submit Claims Promptly – Do not wait until the last minute to submit claims.
- Check HRDF Updates – HRDF policies change, so stay informed on new guidelines.
If your company wants to strengthen its workforce, team building HRDF claimable training is an excellent choice. Many companies also include communication skill training to enhance workplace interactions and improve collaboration.
Conclusion
HRDF is a valuable tool for businesses investing in workforce development. But not every company qualifies. Eligibility depends on sector, workforce size, and compliance with HRDF rules.
If your company is looking to improve teamwork and collaboration, consider team building HRDF claimable training. Not only does it help your workforce, but it also ensures you maximise HRDF reimbursements. To avoid issues, ensure your HRDF registration is complete, your training is approved, and your claims are submitted on time.
At Knowledge Hub Asia, we offer team building HRDF claimable and communication skill training designed to boost teamwork, leadership, and productivity. Our HRDF-approved courses ensure your company maximises training reimbursements while developing a skilled workforce. Explore their programmes today.