HRDF levy is a 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 of 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.
Furthermore, the following payroll items affect the HRDF calculation:
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
This help article was compiled for version 0.48.1 of app.payrollpanda.my
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