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HRD Corp Levy Exemption for Education Industry Employers (2026)

HRD Corp announces a 12-month levy exemption for education industry employers from January to December 2026. Learn who is eligible and how it applies.

Audience & Scope

Audience: HR Admin

Module: Core HR

Country: Malaysia

The Human Resource Development Corporation (HRD Corp) has announced a 12-month levy payment exemption for registered employers within the Education industries, effective from January 2026 to December 2026.

This exemption applies to employers registered under HRD Corp who operate within the education sector, including preschools, private schools, skills training centres, and private higher learning institutions. During this period, eligible employers will not be required to pay the statutory HRD Corp levy for human resource development activities.

The initiative was announced by the Prime Minister of Malaysia during the National Training Week (NTW) 2025 and reflects the MADANI Government’s commitment to strengthening the nation’s human capital development through strategic investment in education.

Education providers play a crucial role in developing skilled and knowledgeable talent. By granting this levy exemption, the government aims to ease financial obligations on education industry employers while encouraging continued investment in workforce training and development.

Employers who fall under the education industries and are registered with HRD Corp should take note that the exemption is time-bound and only applies to levy contribution periods from January to December 2026. Normal levy requirements are expected to resume after this period unless further announcements are made by HRD Corp.

Steps to have this setting disabled in the system at the Employee level

1. Through Bulk Upload (Option 1)

  1. Click into HR Lounge and into the Payroll module Dashboard

  2. Scroll down to the Bulk Download/Upload and Download the template

  3. Under the Statutory column, edit the HRDF Field in the template to 'Non Related' for the employees

  4. Once completed, Save the template and Reupload the template into the system 

2. Through individual Employee Profile (Option 2)

  1. Click into the Employee Profile and into the Payroll column

  2. Scroll down to the Statutory Contributions and click on the Edit button

  3. At the HRDF field, choose Non Related and Save the changes

 

NOTE: You may choose any one of the options above to perform the necessary changes, either through the bulk method or individually at the employee profile. 

Steps to have this setting disabled in the system at the Organization level

  1. Click into HR Lounge and into the Payroll module 

  2. Click into Settings and into the General tab

  3. Scroll down to the Registration Information and at the Organizations , untick the HRDF option

  4. Scroll to the bottom of the page to Save the settings

 

Frequently Asked Questions (FAQ)

Q: What is the HRD Corp levy exemption for 2026?

A: The HRD Corp levy exemption is a 12-month waiver of statutory levy payments for eligible employers in the education industry, effective from January 2026 to December 2026.

Q: Who is eligible for the levy exemption?

A: The exemption applies to HRD Corp-registered employers operating within the Education industries, including preschools, private schools, skills training centres, and private higher learning institutions.

Q: Are employers required to pay back the levy after December 2026?

A: No. However, normal levy payment requirements are expected to resume from January 2027, unless HRD Corp announces further extensions or changes.

Q: Why was this exemption introduced?

A: The exemption was announced during National Training Week (NTW) 2025 as part of the MADANI Government’s initiative to support human capital development and ease financial burdens on education providers.

 

Last Updated & Ownership

Last Updated: 9th February 2026

By: Arveena