23,072 employers get 1 month to pay 1pc HR levy

KUALA LUMPUR: The Human Resources Ministry has given a month’s grace to 23,072 employers who have yet to contribute the one per cent required to the Human Resources Development Levy managed by Pembangunan Sumber Manusia Bhd (PSMB).

Minister M. Kulasegaran said the grace period would end on June 30 and action would be taken against them if they failed to contribute.

He said there were 45,750 employers who were required to contribute, showing that fewer than half the total had done so.

“Starting July 1, employers who fail to register or pay up will face a fine of RM10,000 or a year’s jail, or both. But this would be our last option. The ministry wants to give them a chance. Any employer facing difficulties can contact PSMB for assistance,” he said at Wisma PSMB here.

Earlier, Kulasegaran chaired his first meeting with the PSMB board.

The levy is mandatory for certain employers, and it aims to train and increase the skills of workers. Under the Human Resources Development Act, these employers must pay a levy of one per cent of each worker’s salary.

The employers are those who have 10 local workers or more in manufacturing, mining and quarrying sectors, as well as 38 subsectors of the service industry, including hotels, air transport, tour agencies and telecommunication companies.

“In South Korea and Japan, employers take this seriously so their workers are highly skilled. But in this country, since the act came into being and since PSMB was established 25 years ago, there has been no active participation from employers.

“It is hoped that this will help decrease the dependency on foreign workers. We want a win-win situation so that we can increase productivity and marketability while remaining relevant.”