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      Malaysia Payroll Update: Program Latihan MADANI (PLM) and 15% Deduction of Unused HRD Levy Balance (2025)

      This article serves to notify employers about a 15% deduction from unused HRD levy balances in 2024 to fund the Program Latihan MADANI (PLM).

      As part of Budget 2025, the Malaysian government has introduced the Program Latihan MADANI (PLM) initiative. This program utilizes a portion of unused HRD levy funds to provide training opportunities to underserved groups and micro-SMEs, continuing efforts to build a skilled workforce and support marginalized communities.

      Objectives of Program Latihan MADANI

      1. Expand Access to Training: Provide training opportunities for underserved communities to enhance their employability and skills.

      2. Support Micro-SMEs: Assist micro-SMEs in funding training for their employees.

      3. Build a Skilled Workforce: Foster the development of a highly skilled and competitive Malaysian workforce.

      Who Is Affected?

      The 15% deduction applies to employers who meet both of the following criteria:

      1. Unused Levy Balance: RM 50,000 or more remaining in their HRD levy account as of 31 December 2024; and

      2. Low Levy Utilization: A utilization rate of less than 50% of their contributions from 1 January 2024 to 31 December 2024.


      Timeline and Key Dates

      1. 1 January 2025: The deduction will take effect.

      2. Grace Period: Employers will have a grace period from 1 January to 28 February 2025 to utilize their remaining levy balances.

      3. 1 March 2025: The 15% deduction will be enforced on all affected employers with unused levy balances meeting the criteria.

      Example Scenarios

      • Scenario 1: An employer has RM 60,000 in unused levy balance at the end of 2024 and has utilized 40% of their contributions during the year. They will be subject to the 15% deduction.

      • Scenario 2: An employer has RM 45,000 in unused levy balance at the end of 2024. They will not be affected, even if their utilization rate is low, as their balance is below RM 50,000.

      Appeals

      There will be no appeals allowed for the 15% deduction. Employers are encouraged to fully utilize their levy balances before the grace period ends.

      Communication

      To ensure clarity and transparency, HRD Corp will:

      • Send email reminders to affected employers.

      • Provide levy details through the e-Tris portal, allowing employers to check their balance and utilization rates.

      For detailed guidelines, please refer to the official HRDC Corp circular:

      If you have further questions or require assistance, please contact HRD Corp:

       

      Need Assistance?

      If you have any questions or require assistance, please reach out to our support team via live chat or email us at support@briohr.com.