Levy Calculation Guideline

Levy Calculation Guideline

Section 2 of the PSMB Act 2001


Employee
Any citizen of Malaysia who is employed for wages under a contract of service (under full-time employment whether contract or permanent staff) with an employer, but does not include any domestic servant. If the company director/owner/partner is paid a salary, he/she is regarded as an employee of the company, whereas a director who only accepts director fees is not considered an employee. 

Wages
Basic salary and fixed allowance or other similar emoluments of a like nature paid in cash by or on behalf of an employer to an employee (only for full-time employment whether contract or permanent staff) and includes any leave pay and arrears of wages but DOES NOT INCLUDE : -
 
-any pension fund, retrenchment ..."
-any travelling allowance or the value of any travelling concession … ”
-any allowances paid under apprentice contract.

Example of wages Exempted from Levy Calculation:
-Bonuses and commissions
-Gratuity on discharge or retirements
-Fund/scheme contribution to employee benefits or welfare.
-Travel allowances including petrol and transport allowances
-Apprenticeship
-Special expenses

Example of non-fixed allowance Exempted from Levy Calculation:
-Overtime payment
-Night work allowance
-Shift allowance
-Attendance allowance (for which the amount changes from month-to=month)
-Production incentive
-Other similar types of allowances


Example : Current Levy 

Levy month = Salary month
01/2022 = January 2022

-Payment before or on 15/2/2022, payment  within 15 days of the  following month;
-Payment made after 15 days of the following month becomes levy in arrears due to exceeding the stipulated period.


SAMPLE LEVY CALCULATION

LEVY = [(BASIC SALARY - UNPAID LEAVE) + FIXED ALLOWANCE] x 1%

**2 decimal place

 

 

Section 14 of the PSMB Act 2001

Every employer to whom this act applies shall be subject to human resources development levy at 1% of the monthly wage of the employee.

 

Section 15 of the PSMB Act 2001

An employer with less than the required minimum number of employees, may opt to be registered in the class specified in Part II of the First Schedule, and shall pay a levy for each of his employee at the rate of 0.5% of the monthly wages of the employee.



Click here for more information. 

    • Related Articles

    • Levy Arrears - Guideline To Attend Form 3 Query

      APPLICATION GUIDE: 1. Login to your Employer’s eTRiS account. 2. Click on Inbox. 3. Go to the Work List section on the top left-hand side of your dashboard and click on Inbox. 4. Click on Outstanding Action, followed by the File Number. 5. Open the ...
    • Levy or Interest Refund

            APPLYING FOR A REFUND VIA ETRIS         1)     Select Type of Refund (click Levy or Interest)       2)     Select Reason from the Dropdown Menu       3)     Key in Remarks       4)     Select Levy Month, Levy Year and Applied Amount and click ...
    • Definition of Levy Balance

      Levy Balance refers to actual levy amount in employer's account which is contribution minus reimbursement.
    • Levy Forfeiture

      Section 25 of the PSMB Act 2001 If an employer does not make any claims against the Fund within such period as may be determined by the Board from the date of its registration with the Corporation or from the date of the last financial assistance or ...
    • Levy Payment

      Levy Payment Method Levy Payment Procedure Three (3) Types of Levy Payment 1. CURRENT LEVY - Payment made within stipulated period. - Employer Circular 07/2015 - ETRIS > APPLICATION > LEVY > FORM 2 ESLIP FORM > PAYMENT TYPE (LEVY) – SELECT MONTH > ...
    • Popular Articles

    • Levy Calculation Guideline

      Section 2 of the PSMB Act 2001 Employee Any citizen of Malaysia who is employed for wages under a contract of service (under full-time employment whether contract or permanent staff) with an employer, but does not include any domestic servant. If the ...
    • E-Disbursement Application

      • Introduced to employers and training providers in 2003. • Reimbursement of training grants through direct credit to employer’s bank account. • A secure and fast method of payment. • A solution for unpresented cheques to employers. • Training grant ...
    • Levy Forfeiture

      Section 25 of the PSMB Act 2001 If an employer does not make any claims against the Fund within such period as may be determined by the Board from the date of its registration with the Corporation or from the date of the last financial assistance or ...
    • Levy Arrears - Form 3 Schedule of Arrears

      Employer circular 08/2015 - Employers have to fill up form 3 before make payment for arrears payment. The process days will take 5 working days and will notify through the “inbox” in Etris System. NOTE: please check Form 3 status is ...
    • Steps To Submit HRD Corp Claim For Employers - Skim Bantuan Latihan (SBL) and Skim Latihan Bersama (SLB)

      Note: Claims need to be submitted by employers after the approval of grants and training completion. Effective 1st August 2019, training claims must be submitted within six (6) months after training completion. For Exception to HRD Corp Claimable ...