FAQ Program Latihan Madani - Employer's Circular No 5/2024
THE IMPLEMENTATION OF PROGRAM LATIHAN MADANI BY HRD CORP UTILISING THE 15 PER CENT FROM THE REMAINING UNUSED LEVY BALANCE FOR THE YEAR 2024
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 2025, 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 2024.
a. Levy balance of RM 50,000 and above for the year 2024 only; andb. Levy utilisation rate of less than 50% from the employer's contribution from 1 January 2024 to 31 December 2024.
4. What is the purpose of grace period?
The grace period is from 1 January 2025 to 28 February 2025. 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 2024 - Levy Utilisation in 2024) x 15%
Please see the example below for further clarification:
Scenario 1: FULFILS THE REQUIREMENTS FOR THE 15 PER CENT PLM DEDUCTION
01/01/2024 - 31/12/2024
Levy Collection | RM 1,000,000 |
Levy Reimbursement | (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
01/01/2024 - 31/12/2024
Levy Collection | RM 50,000 |
Levy Reimbursement | (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
01/01/2024 - 31/12/2024
Levy Collection | RM 1,000,000 |
Levy Reimbursement | (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 2 MONTHS GRACE PERIOD)
*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% | 50% | X |
The employer that falls under Scenario 4 DOES NOT FULFIL THE CRITERIA ON LEVY UTILISATION RATE OF MORE THAN 50% and WILL NOT AFFECTED for the PLM Deduction after the grace period.
Scenario 5: FULFIL THE REQUIREMENTS FOR THE 15 PER CENT PLM DEDUCTION (AFTER GRACE PERIOD)
PLM Criteria | *Outcome | |
Levy balance of RM 50,000 and above | NOT APPLICABLE | |
Levy utilisation rate of less than 50% | 41% | / |
The employer that falls under Scenario 5 FULFIL THE CRITERIA ON LEVY UTILISATION RATE OF LESS THAN 50% and WILL 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 March 2025, after the two-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 December 2024 to February 2025 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 1/1/2024 until 31/12/2024 and click search.g. For PLM deduction, please view the latest Levy Statement.
10. Can the affected employers appeal against the PLM deduction?
No. They cannot appeal against the PLM deduction as sufficient time and notice has been given for them to utilise the levy.
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 2025. Any further deduction is subject to the government's future announcement (if any).
13. Will planned or booked training sessions be considered as levy utilised?
The deduction is based on actual utilisation only, where claims have been approved. Therefore, planned or booked training sessions are not taken into consideration.
14. How do I obtain more information on this matter?
Employers may visit https://hrdcorp.gov.my/ or alternatively contact HRD Corp's support team via support@hrdcorp.gov.my or toll-free Call Centre at 1800-88-4800 for further enquiries.
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