THE IMPLEMENTATION OF PROGRAM LATIHAN MADANI BY HRD CORP UTILISING THE 15 PER CENT FROM THE REMAINING UNUSED LEVY BALANCE FOR THE YEAR 2023
1. What is Program Latihan Madani (PLM)?
PLM is an initiative aimed at empowering the country's micro-SMEs and communities in need through training and development opportunities. The programme, announced by the Prime Minister of Malaysia, Yang Amat Berhormat Dato' Seri Anwar Ibrahim, as part of Budget 2024, seeks to expand access to training and development for employees within micro-SMEs, persons with disabilities (PWDs), senior citizens, retirees, current and formerly incarcerated persons and B40 communities.
2. Who will be impacted by the PLM deduction?
All employers from all industries, or sectors registered with HRD Corp who meets the criteria for the PLM deduction as per FAQ No. 3.
3. What are the criteria for deductions to fund Program Latihan Madani (PLM)?
Employers who meet the following two (2) criteria shall be subjected to a 15 per cent levy deduction from their unused levy in 2023.
a. Levy balance of RM 50,000 and above for the year 2023 only; and
b. Levy utilisation rate of less than 50% from the employer's contribution from 1 January 2023 to 31 December 2023.
4. What is the purpose of grace period?
The grace period is from 1 January 2024 to 30 June 2024. It is geared at providing sufficient time for affected employers to utilise their unused levy before the 15 per cent deduction comes into effect.
5. What happens if the employer utilises more than 50% of their levy balance by end of the grace period?
The employer will not be affected by the 15 per cent PLM deduction since one of the criteria is not fulfilled.
6. How is the 15 per cent PLM deduction calculated?
The formula for calculating the deduction is as follows:
(Levy Collection in 2023 - Levy Utilisation in 2023) x 15%
Please see the example below for further clarification:
Scenario 1: FULFILS THE REQUIREMENTS FOR THE 15 PER CENT PLM DEDUCTION
01/01/2023 - 31/12/2023
|
Levy Collection
|
RM 1,000,000
|
|
Levy Utilisation
|
(RM 400,000) *
|
|
Levy Balance
|
RM 600,000*
|
*Please refer to outcome in the table below.
|
PLM Criteria
|
*Outcome
|
|
Levy balance
of RM 50,000 and above
|
RM 600,000
|
✔
|
|
Levy
utilisation rate of less than 50%
|
40%
|
✔
|
The employer that falls under Scenario 1 FULFILS BOTH THE CRITERIA and is AFFECTED by the PLM Deduction as per below:
|
PLM Deduction
|
RM 600,000 x 15% = RM90,000
|
Scenario 2: DOES NOT FULFIL THE REQUIREMENTS FOR THE 15 PER CENT PLM DEDUCTION
|
Levy Collection
|
RM 50,000
|
|
Levy Utilisation
|
(RM 10,000) *
|
|
Levy Balance
|
RM 40,000 *
|
*Please refer to outcome in the table below.
|
PLM Criteria
|
*Outcome
|
|
Levy balance
of RM 50,000 and above
|
RM 40,000
|
X
|
|
Levy
utilisation rate of less than 50%
|
20%
|
✔
|
The employer that falls under Scenario 2 DOES NOT FULFIL THE CRITERIA ON LEVY BALANCE OF RM50,000 AND ABOVE and WILL NOT BE AFFECTED by the PLM Deduction.
Scenario 3: DOES NOT FULFIL THE REQUIREMENTS FOR THE 15 PER CENT PLM DEDUCTION
01/01/2023 - 31/12/2023
|
Levy Collection
|
RM 1,000,000
|
|
Levy Utilisation
|
(RM 600,000) *
|
|
Levy Balance
|
RM 400,000 *
|
*Please refer to outcome in the table below.
|
PLM Criteria
|
*Outcome
|
|
Levy balance
of RM 50,000 and above
|
RM 400,000
|
✔
|
|
Levy
utilisation rate of less than 50%
|
60%
|
X
|
The employer that falls under Scenario 3 DOES NOT FULFIL THE CRITERIA ON LEVY UTILISATION RATE OF LESS THAN 50% and hence, is NOT AFFECTED for the PLM Deduction.
Scenario 4: DOES NOT FULFIL THE REQUIREMENTS FOR THE 15 PER CENT PLM DEDUCTION (AFTER GRACE PERIOD)
01/01/2023 - 30/06/2024
|
Levy Collection 2023
|
RM 1,000,000
|
|
Levy Collection 2024
|
RM 522,000
|
|
Total Collection
|
RM 1,522,000
|
|
Levy Utilisation 2023
|
(RM 400,000) *
|
|
Levy Utilisation 2024
|
(RM 406,000) *
|
|
Total Utilisation
|
(RM 806,000)
|
Levy Balance = RM 716,000 *
*Please refer to outcome in the table below.
|
PLM Criteria
|
*Outcome
|
|
Levy balance
of RM 50,000 and above
|
NOT APPLICABLE
|
|
Levy
utilisation rate of less than 50%
|
52.96%
|
X
|
The employer that falls under Scenario 4 DOES NOT FULFIL THE CRITERIA ON LEVY UTILISATION RATE OF LESS THAN 50% and WILL NOT AFFECTED for the PLM Deduction after the grace period.
7. When will the PLM deduction come into effect?
The 15 per cent PLM deduction will be effective on 1 July 2024, after the six-month grace period.
8. How will the affected employers be notified of the implementation of 15 per cent of the PLM deduction?
Affected employers will receive email reminders from HRD Corp on a bi-weekly basis from April 2024 to June 2024 via their registered email.
9. How can the employers view the information on their levy balance, levy utilisation and PLM deduction?
The employers may view the information by following the steps below:
a. Log in to eTris.
b. Navigate to the "Application" section.
c. Select "Levy" from the available options.
d. Choose "Levy Statement" to access your statement.
e. Click on "View Levy Statement" to see the updated information.
f. For Levy Balance and Levy Utilisation, please select statement date 1/1/2023 until 31/12/2023 and click search.
g. For PLM deduction, please view the latest Levy Statement.
10. Can the affected employers appeal against the PLM deduction?
Appeals are not permissible for employers that fulfil the criteria outlined above.
11. Are newly registered employers affected?
Yes, if the newly registered employers meet the two (2) criteria in FAQ No. 3.
12. Is this PLM deduction a one-off or yearly deduction?
The PLM deduction is a one-off as per announcement of Budget 2024. Any further deduction is subject to the government's announcement.
13. Will planned or booked training sessions be considered as levy utilised?
The deduction is based on actual utilisation only. Therefore, planned or booked training sessions are not taken into consideration.
14. How do I obtain more information on this matter?