HRDF EMPLOYERS' CIRCULAR NO 7/2018

Updated: Nov 23, 2018



DISCONTINUATION OF THE 30 PER CENT DEDUCTION OF REGISTERED EMPLOYERS’ HUMAN RESOURCES DEVELOPMENT (HRD) LEVY INTO THE HRDF CONSOLIDATED FUND

FREQUENTLY ASKED QUESTIONS

Purpose

The purpose of this Frequently Asked Questions (FAQ) document on the discontinuation of the 30 per cent deduction of registered employers’ Human Resources Development (HRD) levy into the HRDF Consolidated Fund is to support enquiries from Employer Associations, Training Provider Associations, Registered Employers, Trainers, and others on our Employer Circular No.7/2018 which was published on the HRDF website on 14 November 2018 (Wednesday)

The link to the mentioned Circular is available here - Cessation of 30 per cent HRDF levy towards the HRDF Consolidated Fund.

Why did the Human Resources Development Fund (HRDF) decided discontinue with 30 per cent deduction of registered employers’ Human Resources Development (HRD) levy into the HRDF Consolidated Fund ?

The decision to discontinue the 30 per cent deduction of registered employers' HRD levy towards the HRDF Consolidated Fund was made in line with the current direction from the HRDF Board of Directors. This decision is permanent for now.

Since its introduction in 2016, the 30 per cent deduction of registered employers’ HRD levy into the HRDF Consolidated Fund was used to implement various strategic human capital initiatives.

Moving forward, HRDF will implement those strategic initiatives under the HRDF Consolidated Fund using alternative sources of funding, working in harmony with the Ministry of Human Resources and other stakeholders.

Further updates will be announced to our registered employers after our thorough engagement with Employer Associations, registered employers and relevant parties; and with proper processes and due diligence in place.

Will my company get a refund of our 30 per cent HRD levy deduction towards the HRDF Consolidated Fund if we did not utilise it?

The 30 per cent HRD levy deduction from registered employers towards the HRDF Consolidated Fund was utilised for the implementation of several strategic initiatives since April 2016

As such, the 30 per cent HRD levy deduction from registered employers towards the HRDF Consolidated Fund will not be refunded.

The deduction of the 30 per cent HRD levy continued despite HRDF suspending several strategic initiatives under the HRDF Consolidated Fund, effective 12 June 2018. Will HRDF refund the 30 per cent HRD levy collected during the suspension period to registered employers?

The reason behind the suspension of several strategic initiatives under the HRDF Consolidated Fund was to enable the HRDF Board of Directors to review its policies, procedures and implementation mechanism; for improved effectiveness and transparency; benefiting all our stakeholders.

The 30 per cent HRD levy deduction towards the HRDF Consolidated Fund during the suspension period and the balance fund from the HRDF Consolidated Fund will be utilised for the implementation of several strategic human capital initiatives with enhanced mechanisms; which will soon be announced to all of our registered employers.

When is the effective date of the discontinuation of the 30 per cent HRD levy deduction towards the HRDF Consolidated Fund?

The final 30 per cent HRD levy deduction towards the HRDF Consolidated Fund was for the month of October 2018.

HRDF registered employers can now utilise 100 per cent of their HRD levy from the month of November 2018 onwards for the human capital development initiatives of their local employees.

When will the new human capital strategic initiatives be announced by HRDF?

HRDF is currently reviewing the mechanism to implement strategic human capital initiatives with improved benefits to its registered employers, and these will be announced once the exercise is completed by early 2019.

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