HRDF levy is mandatory levy payment imposed by the Government on specified groups of employers for the purpose of employee training and skills upgrading. See this help article for a detailed explanation who is eligible to contribute.
By default HRDF is disabled in PayrollPanda, to enable it you have to go to Settings > Payment Details.
Once enabled the PayrollPanda app will auto-calculate HRDF for local employees based on the following:
5 to 9 Malaysian employees: HRDF contribution of 0.5%
10 and more Malaysian employees: HRDF contribution of 1%
The HRDF contribution is calculated based on basic salary plus any fixed allowances. If a payroll item is considered an allowance and was added as a recurring payroll item then it’s included in the calculation. For more information regarding recurring payroll items see this help article.
Example HRDF Levy calculation:
For example if you’re contributing 1% and your employee earns RM 3,000.00 plus a fixed allowance of RM 250.00, the calculation for the HRDF levy is as follows: (MYR 3,000.00 + MYR 250.00) * 1% = MYR 32.50
If your employee took unpaid leave the amount will be deducted from the basic salary and the fixed allowance for the HRDF levy calculation. In PayrollPanda you have to enable auto-unpaid leave calculations in Settings > Payment Settings. For recurring allowances you can enable pro-rating in case of unpaid leave under Employee Settings > Employment Details.
This help article was compiled for version 0.48.1 of app.payrollpanda.my
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