The Government has announced a one-year exemption from the Human Resource Development (HRD) levy for registered employers in the private education sector, effective from January to December 2026.
Human Resources Minister Datuk Seri R. Ramanan said the decision, approved in 2025, covers a wide range of private education providers, including preschools, private schools, vocational training institutions and higher education establishments.
He added that the initiative is expected to benefit more than 3,500 employers nationwide, with an estimated total levy relief exceeding RM35 million.
Ramanan explained that the exemption aims to further strengthen Malaysia’s education ecosystem by ensuring institutions remain resilient and capable of continuing to produce skilled talent for the future.
“The education sector is a fundamental pillar of national development. It plays a crucial role in nurturing future talent and sustaining Malaysia’s long-term human capital pipeline,” he said in a statement.
He noted that the initiative reflects the MADANI Government’s ongoing commitment to enhancing talent development and workforce capabilities, while at the same time supporting a sustainable and competitive education sector.
Implementation of the measure will be coordinated by the Human Resource Development Corporation (HRD Corp). The initiative was first announced by Prime Minister Datuk Seri Anwar Ibrahim during the launch of National Training Week in June 2025.
Meanwhile, HRD Corp Chief Executive Officer Dr Syed Alwi Mohamed Sultan expressed full support for the Government’s decision and affirmed that the agency would work closely with the Ministry of Human Resources (KESUMA) to ensure smooth execution.
“We will facilitate the implementation process so that eligible education institutions can fully benefit from this initiative, which will ultimately help strengthen the sector as a whole,” he said.
Details of the exemption were further discussed during Ramanan’s recent official visit to HRD Corp, his first since assuming office in December 2025. The visit was also attended by Deputy Human Resources Minister Datuk Khairul Firdaus Akbar Khan.
The engagement highlighted close coordination between KESUMA and HRD Corp in translating national workforce policies into effective implementation.
Under the current levy framework, payments for January 2026 would normally be due by Feb 15, 2026, while December 2026 payments are payable by Jan 15, 2027. However, eligible institutions will be fully exempted from making these payments throughout the specified period.
The Government believes the exemption will help ease operational costs for private education providers and enable them to focus on delivering quality education and skills training.
-HR HUB
