Orange Consulting PLT

Claiming HRDF

For Information of HRDF

Please contact

PEMBANGUNAN SUMBER MANUSIA BERHAD
Wisma HRDF, Jln Beringin,
Damansara Heights,
50490 Kuala Lumpur

Hot Line: 1800-88-4800
General Line: 03-2096 4800
Customer Service Line: 03-2096 4600, 03-20964819
Fax: 03-2096 4999

Website: http://www.hrdf.com.my/
Email: support@hrdf.com.my

(Human Resources Development Fund- Malaysia)

We’re HRDF Approved Centre for SBL Scheme (Serial No 5131)

All Public and Corporate Training Workshops conducted by ORANGE CONSULTING PLT (LLP 0000201-LGN) – Website: orangeconsulting.com.my are eligible for HRDF claims under the Skim Bantuan Latihan (SBL) Scheme, subject to prior application to HRDF by the employers.

The Skim Bantuan Latihan (SBL) Scheme
(information can be obtained from HRDNet Website

For programmes/courses under the SBL Scheme, prior approval must be obtained from the Council's Secretariat. Under the scheme, employers are free to identify their own training needs and formulate training programmes to retrain and upgrade their employee's skills in line with their operational and business requirements. Training can be conducted either on-the-job, off-the-job or a combination of both to suit the requirements of enterprises. Training programmes can be carried out by their own trainers or where there is a lack of expertise, by external trainers. Where local expertise is not available, enterprises can also engage qualified trainers from overseas. To qualify for training grants, training programmes must be structured and have :-

Specific training objectives.
Specific training activities or lesson plans.
Guided instructions by qualified instructors/trainers.
Assessment to determine attainment of training objectives.

How To Apply

Log on to your Employee Information System - your company registration no and password (as given by HRDF)
Attach relevant supporting documents:-

Quotation for Course Fee
Trainer's biography
Course Contents
Other related documents, where applicable.

Submit completed form online
Approval or rejection letter will be given within 24 hours from the date of receipt of application.

How To Claim

Fill in form PSMB/T/1/01.
Attach relevant supporting documents:-

Receipts
Payment vouchers
Other related documents, where applicable.

Submit completed claim form to the PSMB upon completion of training for reimbursement of "allowable costs".
Note : Copies of the documents should be certified according to the PSMB's format.

General Guidelines on the Human Resource Development Fund

Objective

The objective of these guidelines is to explain the Human Resources Development Fund (HRDF) to employers in the manufacturing and services sector who are registered with PSMB and contributed to the Human Resources Development levy under the Pembangunan Sumber Manusia Berhad Act, 2001.

Function

There are three main functions of PSMB:

(a) To assess and determine the types and extent of employees’ training and retraining in keeping with the human resources needs of industries;
(b) To promote and stimulate manpower training; and
(c) To determine the terms and conditions under which any financial assistance or other benefits are to be given.

Background

In the quest to attain the status of a Developed Country by the year 2020, greater emphasis must be given to the retraining and skills upgrading of the workforce. This is necessary not only to increase the knowledge and skill intensity of the workforce, but also to equip them with specialised and up-to-date skills as production techniques become increasingly automated and complex. Retraining and skills upgrading is also of paramount importance to enhance the quality of the workforce so that it is versatile and adaptable to a changing technological and industrial environment.

A human resources development policy that focuses on companies and their workforce shall enable them to increase workers’ productivity, efficiency, value-added operations and their competitiveness both in the domestic and international market.

The HRDF will also foster workers’ flexibility and job security through the process of retraining and skills upgrading. This is particularly significant as Malaysia ’s economy is dynamic and open which is bound to be exposed to the unexpected and technological changes. Arising from this; most of the current jobs need to be restructured and sometimes become obselete.

Pembangunan Sumber Manusia ACT 2001

The Pembangunan Sumber Manusia Berhad Act, 2001, was passed in the Parliament vide its October/November sitting in 2000. The Act provides for the establishment of the Board of Directors of the corporation comprising of ten representatives of the employers, three representatives of the government agencies and public services that responsible for the human resource development/training, a representative of the Ministry of Human Resources, a representative of the Ministry of Finance, the Chief Executive of PSMB and two independent members, whose in the opinion of the Minister of Human Resources, will be able to contribute to the work of the Corporation.

Coverage

When the HRDF was implemented on 1 January 1993 , the Act only covered employers with 50 employees and above in the manufacturing sector. With effect from 1 January 1995 , it was extended to employers with 10 to 49 employees and with a paid-up capital of RM2.5 million and above. It is mandatory for this category of employers to register with PSMB and pay the HRD levy at the rate of one per centum of the monthly wages of their employees.

With effect from 2 August 1996 , employers having 10 to 49 employees and a paid-up capital of less than RM2.5 million were given options to register with PSMB. Once registered with Corporation, they are liable to pay the monthly HRD levy at the rate of 0.5 per centum of the wages of their employees.

After much consultation held with the selected industries in the services sector, the HRDF was extended to the hotel, tour operators (in-bound tours only), telecommunications, computer, shipping, aviation and advertising industries as well as freight forwarders and the postal services including courier services with effect from 1 January 1995. In line with the government’s intention to make Malaysia as the regional centre for higher education, the HRDF was extended to cover private higher education with effect from 17 February 2000 . Effective from the same date, the HRDF was also extended to the training and energy industries. Employers from these industries with 10 employees and above are liable to register with PSMB.

With effect from 1 January 2005 , the HRDF was extended to eight industries under the services sector including direct-selling, port services, engineering support and maintenance services, research and development, warehousing services, security services, private hospital services and hypermarket, supermarket and departmental store services. Employers from these industries with 10 or more employees are liable to register with PSMB. However, hypermarkets, supermarkets and departmental stores are liable to register provided only if they have 50 or more employees.

Under Regulation 4(1) of the Pembangunan Sumber Manusia Berhad (Registration of Employers and Payment of Levy Regulations 2001), they have 30 days to register with PSMB form the date they are liable.

An employee is defined as any citizen of Malaysia who is employed for wages under a contract of service with an employer, irrespective of whether they are permanent, part-time or on contract, but does not include any domestic servant .

Human Resources Development Levy

Section 14(1) of the Pembangunan Sumber Manusia Act, 2001, imposes on every employer to whom the Act applies a HRD levy in respect of each of his employee at the rate of one per centum of the monthly wages of the employee. Under Regulation 7 of the Pembangunan Sumber Manusia Berhad (Registration of Employers and Payment of Levy) Regulations 2001, an employer who is liable to pay the HRD levy shall pay those levies for the first and subsequent months’ wages commencing from the date the employer becomes liable.

The payment of the HRD levy is the responsibility of the employers. The wages of employees are not permitted to be deducted under any circumstances for the payment of the levy.

Eligibility For Training Grant

Employers registered and/or incorporated in Malaysia who have registered with PSMB and paid the HRD levy within a month after registration are eligible to apply for training grants (financial assistance) to defray all or a major portion of the “allowable costs” of training their employees. Training must be in the area of direct benefit to their business operations. Financial assistance is, therefore, not given to individuals who enroll and finance their own training programmes whether partially or fully and later request their employers for sponsorship. Neither is the financial assistance given to the employers who bear the cost of training after the successful completion of training by their employees.

As provided under Section 20(5) of the Act, any employer who is eligible to receive or in receipt of any financial assistance provided under the Act shall be disqualified from receiving such financial assistance if he is in default of any payment of the levy and shall remain disqualified until such time that all the outstanding payments including interests had been fully paid.

The payment of training grants will be subject to the terms and conditions imposed by PSMB from time to time and may be withdrawn by the Corporation for any breach of any of the terms and conditions imposed.

To be eligible for training grants under the HRDF, trainees must be employees who are MALAYSIAN CITIZENS.

Rate of Financial Assistance

The HRDF is not a subsidy scheme for the retraining and skills upgrading of workers by employers. As the HRDF will provide financial assistance to defray a portion of the “allowable costs”, all retraining and skills upgrading programmes undertaken by employers should be seen as cost-sharing efforts. However, employers are eligible to claim up to the last cent of levy paid in any current year. It is hoped that the effort of training and retraining of the workforce will be continuously increased.

The rates of financial assistance with effect from 16 July 2000 are as follows:-

Types of Training

Skills Areas	Rate of Financial Assistance, Subject to the Maximum Allowable Costs
1) Technical Skills	100%
2) Craft Skills	100%
3) Quality And Productivity Related Skills	100%
4) Computer Related Skills	100%
5) All Other Retraining & Skills Upgrading	85%
a) Overseas Training	50%
b) Puchase of Training Equipment and Setting up of Training Room	80%
c) Purchase of Computer-Aided Software	85% - 100%
d) Apprenticeship Scheme	100%
e) IPTS Lecturers undergoing training in the Engineering, Computer, Medical and Teaching Fields	100%

Allowable Costs

The financial assistance comprised of the following allowable cost:-

Course fees for ATP courses under the PROLUS Scheme or non-ATP courses by any other training providers (not including registration fees, examination fees or any other fees, if any);

ii)

Course fees for public courses by local or foreign trainer(s)/instructor(s) (only for courses that are not available locally). The maximum amount approved is RM1,000.00 per day;

iii)

Remuneration of internal trainer(s)/instructor(s) [basic salary and fixed allowances only], pro-rated to the number of training days. For the purpose of computation, the number of days in a month is fixed at 30 days. Claims for overtime will not be entertained;

iv)

Fees paid to external trainer(s)/instructor(s) for the duration of the training programme(s). The maximum fee allowable is RM3,500.00 per day;

Fees paid to foreign trainer(s)/instructor(s) for the duration of the training programme(s);

vi)

Daily allowances which limited to food allowance, lodging and transport cost which are payable to the trainee(s) for the duration of the training programme(s):-

a)	There will be no daily allowance for in-house programme except for trainer(s) or trainee(s) from branches/ headquarters and vice versa;
b)	External programme – where training is conducted within a radius of 50 kilometers (one-way) from the workplace of trainee, a maximum daily allowance of RM50.00 per trainee per day or the actual rate paid by employers, whichever is lesser. No daily allowances will be paid if refreshments are provided by training providers. However, the actual cost of transport will be reimbursable;
c)	External programme – where training is conducted beyond 50 kilometers (one-way) from the workplace of the trainee, a maximum daily allowance of RM150.00 per trainee per day or the actual rate paid by employers, whichever is lesser. The amount includes the cost of accommodation which must be supported by hotel bills/receipts. If refreshments are provided by training providers, no daily allowance will be paid except for accommodation and transportation;
d)	Trainee(s) daily allowances for training conducted for four (4) hours or less (only for a programme with more than seven hours) – an employer is eligible to obtain financial assistance at half of the fixed daily allowance, paid to the trainee(s). The daily allowance payable is up to a maximum of RM25.00 per trainee per day if the distance between the employer’s premise and the venue of training is within a radius of 50 kilometers (one-way) and a maximum of RM75.00 per trainee per day if the distance between the employer’s premise and the venue of training is more than 50 kilometers (one-way);
e)	Where overseas trainer(s)/instructor(s) are engaged, the daily allowance payable is subject to a maximum of RM400.00 per trainer/instructor per day or the actual rate paid by employers, whichever is lesser. The amount includes allowances for food, lodging and transport which are payable to the trainer(s)/instructor(s) for the duration of the training programme(s); and
f)	The daily allowance payable to trainee(s) for any overseas training is subject to a maximum of RM600.00 per day or the actual rate paid by the company, whichever is lesser. This includes the cost of accommodation which must be supported by hotel bills/receipts.

vii)

Economy rates of traveling by air for trainee(s) and internal trainer(s) and overseas trainer(s) only, if applicable. For overseas trainer(s)/ instructor(s) air fare costs are only claimable if the trainer(s)/instructor(s) are specifically called to conduct the training applied by the employer for the specific duration. The costs of economy rate air fare covers the airport tax, administrative fees and fuel surcharge;

viii)

Consumable training materials
Under the Joint Training Scheme, only the organising employers are eligible to apply for and claim the costs of the consumable training materials;

ix)

Hotel Rental
The cost of hotel rental which is normally in the form of a seminar package should not exceed the total daily allowances payable as per the claim by the trainees and internal trainers;

To enable PSMB to consider this, employers must submit quotations from hotels in their applications for training grants under the SBL, PLT and Joint Training Scheme. Employers should rent training rooms in hotels nearest to the companies’ premises. Where the mode of traveling for trainers and trainees is by chartered coaches/buses, quotation from a transport company must be submitted. However, the total costs of hotel rental and traveling must not exceed their maximum daily allowances payable;

Rental of Training Premises
Apart from hotels, employers are allowed to rent training premises such as premise of training providers, employers’ associations and others. Food should also be catered by the owners of the premises. The cost of rental and food should not exceed the total daily allowances payable to trainees and internal trainers. To enable PSMB to consider this, employers must submit quotations from owners of training premises in their applications for training grants under the SBL, PLT and Joint Training Scheme. Employers should rent training premises nearest to their companies. Quotation from a transport company must be submitted if traveling by trainees/trainers is by chartered coaches/buses. The total costs of rental and traveling must not exceed their maximum daily allowances payable;

xi)

For in-house training conducted at a hotel for a duration of 4 (four) hours or less, an employer is eligible to claim financial assistance for the normal seminar rental package. The amount that can be claimed is 1/2 (half) of the seminar package and should not exceed 1/2 (half) of the total daily allowances claimable by trainee(s)/internal trainer(s) that is not exceeding RM25.00 per day if the distance between the employer’s premise and the hotel concerned is within a radius of 50 kilometers (one-way), and RM75.00 per trainee per day if the distance between the employer’s premise and hotel is more than 50 kilometers (one-way) or the actual rate paid by the employer, whichever is lesser. Employers have to provide justification for their application of the training grant. Only training programmes with a duration of more than 7 (seven) training hours is allowed;

xii)

For meal Allowance for In-House Programmes Conducted Within Employer(s) Premises, employers are eligible to claim meal allowances up to RM10.00 per trainee per day for in-house programmes conducted within their premises. Internal trainers are also eligible for meal allowances. However, meal allowances can only be considered for full day (seven hours) programmes. Receipts must be submitted to substantiate this claim; and

xiii)

Corporate Trainers conducting training in company’s branches and subsidiaries or internal trainer(s) from corporate headquarters/ subsidiaries/branches of employers conducting training at other branches and subsidiaries in other locations are also allowed to claim traveling by air at the economy rate and daily allowances, subject to the maximum allowable as per the rate fixed for trainee(s).

No daily allowances will be paid for programmes/ courses conducted during the evenings. However, daily allowances can be paid for weekend training/courses, if they are paid by employers.

Only programmes with at least seven (7) training hours will be considered for financial assistance under the HRDF.

xiv)

Employers are eligible to claim course fees and trainee(s) daily allowances from PSMB when they send their employers to attend conferences subject to the following conditions:-

a)	The conference topics attended by the employee(s) must be of relevance to the needs of the company;
b)	The conference fees do not exceed RM400.00 per day;
c)	The conference is conducted locally;
d)	The conference is organised by the employers association;
e)	The duration of the conference is not less than one day (7 hours) and not more than three days;
f)	Daily allowances for food, accomodation and transport during the conference are claimable subject to existing conditions; and
g)	Economy rate of traveling by air for trainee(s) is also claimable (if applicable).

To ensure employers are eligible for financial assistance, the employers association that organised the conference are required to get written approval from PSMB at least two months before the conference by providing information on the following:-

i)	Brief outline of the employers association (conference organiser);
ii)	Brochure and conference schedule;
iii)	A list of speakers; and
iv)	Conference fees.

Registration of Employers

Under Section 13(1) of the Pembangunan Sumber Manusia Act, 2001, every employer to whom the Act applies shall register with the Corporation within such time and manner as may be prescribed. Regulation 4(1) of the Pembangunan Sumber Manusia Berhad (Registration of Employers and Payment of Levy) Regulations 2001 stipulates that an employer to whom the Act applies shall submit the Registration of Employer Form (Form 1) to the Corporation not later than 30 days after the date of coming into force of the Regulations, that is, 16 May 2001.

An employer who becomes liable after 16 May 2001 will be required under Regulation 4(2) to submit Form 1 not later than 30 days after becomes liable. Section 13(2) of the Act also stipulates that any employer who contravenes Section 13(1) shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding RM10,000.00 (ten thousand ringgit) or to imprisonment for a term not exceeding one year or to both.

Payment of HRD Levy

Under Regulation 7 of the Pembangunan Sumber Manusia Berhad (Registration of Employers and Payment of Levy) Regulations 2001, employers liable to pay the HRD levy will have to pay the levy not later than the last day of the month immediately following the month in respect of which those payments fall due. Under Section 14(3) of the Act, where an employer fails to pay any levy within the period prescribed by Regulation 7 of the Pembangunan Sumber Manusia Berhad (Registration of Employers and Payment of Levy) Regulations 2001, the employer shall be guilty of an offence and shall, on conviction, be liable to a fine not exceeding RM20,000.00 (twenty thousand ringgit) or to imprisonment for a term not exceeding two (2) years or to both. Section 24 of the Act also stipulates that any levy payable together with any interest thereon, shall be a debt due to and be recoverable by the Corporation.

Employers who fail to pay their levies within the specified period will have to pay a yearly interest of 10% in respect of each day of default or delay in payment. Payments for interests must be made by using Form 2C which will be forwarded by PSMB. The quantum of interest to be paid will be determined by the Corporation.

Method of Payment

All payments of levy or arrears of levy or interests must be made through PSMB’s collection agents (Public Bank Berhad and RHB Bank Berhad) using Forms 2A, 2B or 2C. For areas where there are no local Public Bank or RHB Bank branches, employers can send their levy payments directly to PSMB’s headquarters at Kuala Lumpur, but the PSMB will not be responsible if cheques are lost in transit or if payments are delayed. Form 2A must be used for payment of levy for the current, whilst form 2B must be used for payment of arrears in respect of levy payments for previous months. Employers issuing single cheques for payment of arrears involving several months must use a separate Form 2B for each month of arrears to be paid.

For the payment of the HRD levy, PSMB has appointed Public Bank Berhad and RHB Bank Berhad as its collection agents throughout the country. The account numbers of the PSMB at the two banks are as follows:-

i)	Public Bank Berhad - 3999060003
ii)	RHB Bank Berhad - 21433437000066

The banks concerned will print PSMB’s account numbers on Form 2A (payment of levy for current month) and 2B (payment of levy for arrears) and 2C (payment of interests on arrears of levy) when employers make payment. For areas where there are no Public Bank Berhad or RHB Bank Berhad branches, employers may send the monthly levy/arrears/interest together with Form 2A or 2B or 2C duly filled to the Chief Executive of PSMB. The address is as follows:-

Chief Executive
Human Resources Development
6 th & 7 th Floor, Wisma Chase Perdana
Off Jalan Damansara,
Damansara Heights,
50490 Kuala Lumpur

The third copy of Form 2A, 2B or 2C after being machine-printed or duly acknowledged by an authorized bank officer and stamped with date of receipt, will be returned to the employer concerned and should be kept as prima facie evidence of the levy/arrears/interest having been paid.

The acceptable modes of payment are cash, local cheques, banker’s order, cashier’s cheque, money order and postal order. Outstation cheques are discouraged.

Training Scheme

Training schemes which are being offered are as follows:-

The SBL (Skim Bantuan Latihan) Scheme is the main funding scheme of PSMB. Under this scheme, an employer is allowed to conduct training either on-the-job, off-the-job or combination of both. An employer may also conduct training by engaging internal, external or overseas trainers. Trainers of training providers are not required to register with PSMB under this scheme.

Employers can claim for reimbursement from HRDF upon completion of programme. However, approval from PSMB is required prior to commencement of programme by completing Form PSMB/SBL/1/01. Training grants can be considered for all types of training programmes (both in-house and external) for the retraining and skills upgrading of employees relevant to the needs of employers.

ii)

The SBL-KHAS Scheme is implemented to assist employers who are facing cash flow problems to continue with their retraining and skills upgrading of workforce programmes during the economic slowdown by using the existing levy balance. This scheme is available to all employers registered with PSMB. Under this scheme, employers do not have to pay or only pay a small upfront cost depending on the rate of financial assistance on each training programme. PSMB will directly debit from the employers’ levy account to pay the training fees to the training providers with the authorisation of the employers.

Similar to the PERLA scheme but approval from PSMB is required prior to commencement of programme by completing Form PSMB/SBL/1/01 and PSMB/SBL-KHAS/T1/01. Employers must submit Form PSMB/SBL-KHAS/T2/01 to PSMB prior to the commencement of programme.

The SBL-KHAS Scheme which was introduced on 16 September 2001 is an extension of the SBL Scheme. The objective of the scheme is to assist employers who have cash flow problems to retrain and upgrade the skills of the workers during the economic downturn through the usage of the current levy balance in the HR DF.

Under the SBL Scheme, employers have to pay the course fees upfront to the training providers. However, under the SBL-KHAS Scheme employers do not need to pay the course fees, or they only have to pay a small amount of the course fees to training providers depending on the maximum allowable course fee imposed by PSMB.

The SBL-KHAS Scheme is quite similar to the PERLA Scheme. Employers can still send their workers for training under this Scheme. One of the advantages of the SBL-KHAS Scheme is that the course content is allowed to be modified not more than 50% of the approved course content to suit the employers’ training needs.

The SBL-KHAS Scheme covers publicly conducted courses as well as customized in-house training conducted by external trainers. Employers need to submit the training grant applications before the commencement of the training. Claims by employers as well as training providers can be done after the training had ended. It is hoped that with this facility employers will further increase their retraining activities.

Originally, the SBL-KHAS Scheme was introduced on a temporary basis with the intention to assist and help to ease employers’ financial burden when sending their workers for training during the economic downturn in the late 1990s. Due to the positive impact as well as the overwhelming response from the employers, PSMB through its Board of Directors in its meeting dated 18 September 2003 decided the SBL-KHAS Scheme be made into a permanent scheme. The procedures for the application of training grants and claims under this scheme is the same as paragraph 4 and 5 in PSMB’s Employers Circular No. 11/2001 dated 29 August 2001.

iii)

The PROLUS (Program Latihan Yang Diluluskan) Scheme requires training providers to register with PSMB. After which, they may submit their training programmes which are relevant to employers’ training needs for the consideration of the ATP (Approved Training Programmes) status. Employers can select any training programme with ATP status, to send their employees for training without the prior approval of PSMB and claim for reimbursements upon the completion of training, subject to terms and conditions imposed by PSMB.

iv)

The PLT (Pelan Latihan Tahunan) Scheme is the annual training plan scheme where employers are encouraged to put up Annual Training Plans. Under this scheme, employers must undertake systematic training needs analysis to ensure that training programmes are conducted based on companies’ needs and in line with their business plans and level of technology used. This effort is to ensure that the funds used by the companies will benefit them. Employers without the necessary expertise to do so, can seek assistance from PSMB through:-

Juruplan Scheme(Consultancy Scheme for Training Needs Analysis). Employers can apply for consultancy services from training consultants registered with PSMB. The consultants will assist employers to identify training needs, systematically formulate training programmes and prepare annual training plans. Employers must obtain prior approvals from PSMB in respect of the TNA proposals put up by the consultants and the rate of financial assistance will be at 80% of the fees approved. This scheme is a one-off exercise and employers are expected to carry-out their own TNA in the future.

The PERLA (Training Agreement With Training Provider) Scheme. This scheme is basically a Training Agreement Scheme with selected training providers registered with the PSMB. The objective of the scheme is to lessen the financial burden of employers, particularly the smaller employers. Under the scheme, employers sending their employees for retraining/skills upgrading with these training providers need not to pay the full amount of fees charged. As an example, if the fee charged for a particular programme is RM1,000.00 and the rate of financial assistance under the HRDF is 85%, employers only need to pay an upfront of RM150.00 upon registration. The balance of RM850.00 will be claimed by the training provider concerned from PSMB. Where the rate of financial assistance is 100%, employers need not to pay upfront cost at all. With no or a small upfront cost, PSMB hoped that more employees will be sent for retraining and skills upgrading.

vi)

Purchase of Training Aids and Setting Up of Training Room Scheme. This scheme enables employers to obtain financial assistance at the rate of 80% to purchase basic training aids and set up training rooms, subject to a maximum of 20% of total levy paid in the previous year. Employers can apply for this scheme before any purchase or renovation works are conducted. This scheme encourages employers to conduct more in-house training, apart from enhancing the training culture amongst them.

Training aids approved under the scheme are as follows:-

a)	Television set;
b)	VCD (Video Compact Disc) Player or DVD (Digital Video Disc) Player;
c)	Overhead Projector, Multimedia;
d)	LCD and Direct Projector;
e)	Screen and white board;
f)	Training tapes and videos;
g)	Slides;
h)	Chairs and tables for training room only; and
i)	Flip Chart Stand.

vii)

Computer-Based Training (CBT) Scheme

Computer-Based Training and Computer-Aided Instruction are vital in the upgrading of workers’ skills. As a result, employers who wish to purchase or develop computer-based training softwares including CD-ROM for the retraining and skills upgrading of their workers will be eligible for financial assistance. For the purchase of softwares, prior approval from PSMB is not required. However, for the purpose of software development, prior approvals must be obtained from PSMB. The rate of financial assistance will be based on the type of skills.

viii)

Purchase of Personal Computer*

To encourage IT training by companies, financial assistance will be provided to employers to set up computer training units within their premises. Under the scheme, employers can purchase several units of personal computers. However, financial assistance is up to a maximum amount of RM25,000.00 for once in every three (3) years for headquarters of companies and an additional of financial assistance of up to RM25,000.00 for branch office.

* The purchase of personal computers which include multi-media kits such as “CD-ROM Drives”, Speakers’ and ‘Sound Cards’ are allowed. Notebooks and Laptops are not eligible for the financial assistance under the scheme.

ix)

Apprenticeship Scheme

The objective of this scheme is to increase the supply of skilled workers in industries identified by PSMB and employers. Apprentices are selected from PMR/SPM school leavers and existing employees subject to a ratio of one (1) existing worker to one (1) school leaver. Apprenticeship training consisted of a combination of theoretical training at the premises of training providers with an emphasis on practical training and structured on-the-job training for each module at the premises of sponsoring employers. The curriculum for the apprenticeship scheme has been developed on a modular basis. After completion of training of each of the module at the premises of the training providers (3 months), apprentices would have to undergo another three (3) months on-the-job training at the premises of sponsoring employers. This is to reinforce the theoretical concepts learnt in the classrooms. The duration of training ranges from six (6) months to 18 months, depending on the type of skills and the needs of the employers.

Tuition fees incurred will be fully paid by PSMB whilst employers will be responsible for paying their apprentices monthly allowances of between RM300.00 to RM500.00. Sponsoring employers are also responsible to purchase insurance coverage for their apprentices for the duration of training. Sponsoring employers are eligible to obtain financial assistance at the rate of 100% of the “allowable costs”, namely, apprentices’ monthly allowances, insurance coverage and consumable training materials, if applicable. Upon successful completion of the training, apprentices will be awarded the Malaysian Skills Certificates Level 1 and 2 by the National Vocational Training Council. For those who completed the full modules required under any of the scheme, they would be awarded the Apprentice Certificates, jointly issued by PSMB and the National Vocational Training Council.

Joint Training Scheme

This scheme involves several employers, particularly those from the SMEs to jointly appoint a training provider to conduct training for their employees. One of the employers will act as the ‘organising employer’ who will determine the type of programme required, engage a suitable training provider and determine the venue for training. The ‘organising employer’ will also be responsible for determining the cost per employee to enable participating employers to claim the allowable costs incurred upon completion of the training. The number of employees from participating employers must at least be more than 50% of total participants of the programme. The ‘organising employer’ is eligible to claim the allowable costs at the rate of 100%. Whilst participating employers can only claim at the normal rates of financial assistance currently approved by PSMB.

Details of these schemes can be found in the pamphlets specially printed for each scheme.

Eligibility of Employers

All employers registered with PSMB and have paid the Human Resources Development levy upon registeration are eligible to apply for training grants, subject to the stipulated rate of financial assistance to defray a part of the training costs for MALAYSIAN CITIZEN employees. Employers must also fulfil the following conditions:-

i)	All expenses incurred on training programmes must be borne by the employers and not by the trainees. The financial assistance allocated is only to defray a part of the expenses paid by the employers, not for individuals’ personal enhancement. This is to reduce wastage of skills training due to no accountability at the workplace. Employers are in the right position to identify the areas of training required and to work together with the training providers in initiating the programmes for the skills development in line with their companies’ needs;3
ii)	Employers are not allowed to assume the costs of public programmes only after the programmes were successfully attended by the trainees. Reimbursement of payment, normally made under the Education Assistance Scheme is considered by PSMB as part of the employees’ employment benefits and not derive specifically meant to meet the company’s needs; and
iii)	Trainees must fulfil at least 75% of the attendance for each module and sit for all examinations and/or complete all assigned tasks, when required. Reimbursement will only be made when both conditions have been fulfilled.

Mode of Training

As the HRDF is a comprehensive training scheme, the following modes of training are allowed:-

i)	Enterprise-Based Training The development of enterprise-based training will not only produce a skilled workforce, productive and efficient but as well as increase productivity and ensure that the level of training in line with each of enterprise’s technological environment. This mode of training can combine both formal classroom study and factory training and can be designed to allow minimal disruption to production activities. Thus, it can be provided either on-the-job and/or off-the-job. However, to qualify for financial assistance, the programme must be structured with specific training objectives and training contents/lesson plans.
ii)	Institution-Based Training Training providers, irrespective of whether they are public sector training institutions, private sector training institutions, consultancy firms, trade or industry organizations that can offer cost effective training programmes that meet the training needs of employers in the ever-changing technological and market environment will also be supported by PSMB;
iii)	Industry-Managed Training Centres Since training centers managed by industry are expected to conduct training programmes in line with the knowledge and skills required by employers, those programmes organised by them are eligible to obtain financial assistance under the HRDF. Employers who send their employees for training at these training centers are eligible for the financial assistance;
iv)	Collaborative Type of Training Large enterprises that have excess training capacities are encouraged to offer training places to employees of other enterprises, particularly the smaller enterprises which may not have the expertise and resources to formulate and run their own training programmes. This mode of training is particularly effective in a situation where smaller enterprises do sub-contracting work for large enterprises. If employers sent their employees for such training, they will be eligible for training grants under the HRDF;
v)	Overseas Training Training for the upgrading of skills should ideally be conducted locally as the costs involved in overseas training are high and only a few can be sent. Only in cases where the training required is not available locally and is absolutely necessary, the applications for overseas training can be considered based on case to case basis.

Diploma Programme

Employees attending retraining and skills upgrading programmes/courses at the diploma level will be eligible to receive financial assistance under the Human Resource Development Fund. However, diploma programmes must not only enhance the knowledge and skills of the workforce to improve their job performance and productivity but also enable them to fill vacant positions at higher levels within the organisations.

Diploma programmes should be formulated on an application-based learning and must be structured in line with the employers’ needs and have direct relevance to the workplace. A committee chaired by the Chief Executive of PSMB has been set up to evaluate the training contents, syllabus, course materials and other related documents to be submitted by training providers.

To cater for the working employees, these programmes should preferably be conducted during the evenings and weekends or on the off day basis. Alternatively, employers may recruit jobseekers as their employees and send them for full-time training in the engineering and technical skills to meet with their medium term manpower needs.

Application for Training Grants

Employers undertaking the retraining and skills upgrading of their employees through any mode of training as highlighted earlier can apply for the training grants under any of the training schemes established by PSMB. The rate of financial assistance will be as determined by PSMB and subject to the terms and conditions imposed. These terms and conditions may be amended by PSMB from time to time.

To ensure these in-house programmes are being run successfully and cost effective, PSMB has outlined the minimum number of trainees subject to the size of the company (based on the Employers Circular No. 7/2003) as follows:-

Big Employers (200 and more employees)	Minimum of 10 persons
Small and Medium Enterprises (199 and less employees)	Minimum of 5 persons

If the employers have received prior approval to carry out the programme with a minimum number of trainees, any reduction in the number of trainess is not allowed.

The maximum number of trainees is subject to the type of training conducted (based on Employers Circular No. 3/2004).

Technical and Information Technology Skill	Maximum of 25 persons
Non-Technical Skill	Maximum of 35 persons

For training programmes offered by training providers publicly, PSMB has agreed to consider training grant application submitted by employers with the following conditions:-

The number of trainees attending the programme in any particular session is not more than 35 persons;

If the number of the trainees attending the programme exceeds 35 persons but not more than 100 persons for a particular session, their training grant applications can be considered if these trainees are placed into groups of not more than 20 persons per group. The duration of time allowed for these groups must be at least 50% from the total training hours allocated. This means if the programme is conducted over two days, according to the grouping; each group must complete at least one training day;

Each group must be handled by different trainers; and

To ensure employers obtain the approval of training grant to attend public programmes of more than 35 persons, training providers are required to obtain written approval from PSMB before the commencement of the training. The application with supporting documents as stated below must be submitted to PSMB at least six weeks before the commencement of the training:-

i)	Course content;
ii)	Training schedule together with the group allocation;
iii)	Background information/curriculum vitae of the main and group trainers; and
iv)	Quotation of course fees.

Claims for Training Grants

Duration for Claims to be Submitted

Claims for training grants for completed programmes in the current year should be submitted not later than 30 June of the following year. Claims received after this dateline will be rejected. The list of claim forms for the training schemes under HRDF is the following:-

No.	Training Schemes	Claim Forms
1.	SBL, PLT, SBL-KHAS, Joint Training Scheme	PSMB/T/1/01
2.	PROLUS Trainees Attendance List Claim Form	PSMB/PRO/4/01 PSMB/PRO/T/01
3.	PERLA Levy Check List Attendance List Employer Claim Form Training Provider Claim Form	PSMB / PER / 1/03 PSMB / PER / 2/01 (Pin 04) PSMB / PER / T1 / 01 PSMB / PER / T2 / 01
4.	Purchase of Training Aids	PSMB/PL/T/01
5.	CBT	PSMB/CBT/T/01
6.	Apprenticeship Employer Claim Form Training Provider Claim Form	PSMB/SP/T1/01 PSMB/SP/T2/01
7.	Information Technology	PSMB/IT/T/01

Reimbursement of Claims

Financial assistance in respect of approved allowable costs will be reimbursed on a claimed basis. The amount reimbursed is subject to the actual expenses borne by the employers and subject to the approved amount, the availability of funds in the employers’ account as well as the employers’ levy balance. Employers are allowed to fully utilise their levy paid in any particular year. The unutilised levy, if any, will be allowed to be carried forward to the subsequent years. However, this will be reviewed by PSMB from time to time.To ensure prompt payment of claims, all claims must be supported with adequate supporting documents as follows:-

No.	Expenses Claimed	Supporting Documents
1.	Tuition fees/fees paid to the external trainers	Receipts and invoices
2.	Daily allowances (includes transportation, food and accommodation, (if applicable)	Payment vouchers and/ or claim statements as well as hotel bills.
3.	Hotel rental packages/rental of training premises	Hotel bills/receipts
4.	Economy rate of traveling by air	Air fares ticket (ticket stubs)/receipts
5.	Consumable training materials	Receipts and invoices

Claims Made Without Receipts or Payment Vouchers

Employers who fail to provide payment vouchers or do not have receipts when claiming for allowable costs such as daily allowances and consumable training materials must certify the actual expenses incurred in Forms PSMB/TR/1/901 or PSMB/TR/2/01 (please refer to Employers’ Circular No. 4/95 for further details). However, PSMB has the right to request for other documents relating to the expenses incurred in a particular claim, should any doubt occurred pertaining to any claims.

Disbursement Procedures

Completed claims’ forms received will be processed by the Claims Unit of the Finance Division of PSMB. If there is no problem pertaining to the employers’ levy status, cheques would be issued within four (4) weeks. Cheques and payment particulars would be sent by mail to the respective employers using the addresses available in the database of PSMB’s computer system.

It is therefore important that employers notify the Corporation immediately if there are any changes in the addresses.

For employers with arrears of levies or interests, their claims will be processed by offsetting their levy arrears/interests with the approved amount. Any balances available will subsequently be paid to the employers.

Claims with incomplete supporting documents would be queired and returned to the employers for necessary actions. In cases where employers have not received any feedback six (6) weeks after their claims have been submitted, they should contact the Finance Division of PSMB to check on the status of their claims. This can also be done by checking their accounts electronically through PSMB’s website.

Additional Guidelines to Submit Claims

To ensure that claims are in order as well as to avoid queries and delays in payments, employers are advised to pay additional attention to the following :-

Receipts for Tuition Fees or Other Costs of Training

Please ensure that the receipts submitted to are official receipts with complete details of serial numbers, addresses and telephone numbers of the recepients. Particulars of programmes such as programme titles, dates of training and the actual cost for each module or itemized expenses, where applicable, should be clearly stated in the receipts or invoices submitted. Receipts issued must be in the name of employers and not trainees.

Payment Vouchers for Daily Allowances or Meal Allowances

Employers are requested to ensure that particulars of payments including the calculation of allowances for each trainee are stated clearly. Names and designations of the officers who approved the payment vouchers should also be stated clearly. Every trainee who receives payment (cash) has to acknowledge the receipt of payment.

Course Title

Course titles as stated in the supporting documents such as the receipts or payment vouchers must be in full and correct as stated in the grant approvals.

Photostat Copies

Photostat copies of supporting documents are acceptable provided they are taken from the original copies and have been certified according to PSMB’s format (please refer to the example given below). The certification format is as follows:-

The copy is authenticated as the original. The original receipt is kept in the office for the employer's administration and confirmed that the original receipt was not used for other claim purposes from PSMB or from other financial institutions. PSMB officers are authorized to check.

Signature :
Name :	Company Stamp :
Position :