The Human Resource Development Fund (HRDF) is the collection of HRD levies imposed by the HRD Act of 1992 for the purpose of training and re-training of employees. This is especially necessary in view of Malaysia’s quest to attain the status of a developed nation by the year 2020.

It is compulsory for Malaysian employers to be registered with the HRD Council and pay the HRD Levy at the rate of 1% of their employees’ monthly wages. As an incentive, the Government provides a subsidy at a flat rate of RM2.00 for every RM1.00 levy contributed.