HRD Corp Interest of Arrears

13 April 2022

Do you know, as the registered HRD Corp employers, you are required to pay the levy before the set date which is the 15th of each month? If you happened to miss it, a yearly interest of 10% in respect of each day of default or delay in payment will be imposed.
The employers still need to pay the levy in arrears and the interest calculation is based on the total levy in arrears. Calculation of interest of arrears as follow: 

To pay the arrears and interest is a bit different compared to the current levy. Employers are required to fill up Form 3 (Schedule of Arrears of Levy) by providing the following details:

  • Number of employees
  • Total basic salary
  • Total of fixed allowance
  • Payroll summary or EPF statement
Each detail submitted needs to be subjected to the month of arrears. For example, February and March are the months of arrears, and the employers are required to submit Form 3 together with the said details for the month of February and March separately.

Submitted Form 3 will be reviewed by the HRD Corp officer and once approved, employers shall proceed with the payment by filling up Form 2 and choosing Levy in Arrears as the type of payment. Amount of interest of arrears will be advised once payment of arrears has been cleared. All notifications will be sent by HRD Corp through email.

If the employers are not going to clear their arrears, HRD Corp may fine the employer with the amount of RM 20,000 or imprisonment not more than two years or can be both. 

Kosumy is providing compliance support to the employers to ensure that your levy submission will be on the stipulated time. Therefore no more arrears and additional cost added to pay the interest. Contact us at to learn more about our service.