KUALA LUMPUR: A proposal to set up a consolidated fund meant for training programmes for employees has drawn flak from employers.
Employers are not in favour of the Human Resources Development Fund (HRDF) proposal to channel 30% of their unused levy for employee training into the consolidated fund.
Malaysian Employers Federation (MEF) chief Datuk Shamsuddin Bardan had recently said in a news report that employers wanted any unused levy to be returned to their individual accounts instead.
Since June last year, 30% of the total levy payment by HRDF-registered employers has been placed in a fund called the 1Malaysia Globally Recognised Industry and Professional Certification Programme (1MalaysiaGRIP).
This is to encourage employers to train their employees under 1MalaysiaGRIP, said HRDF chief executive Datuk C.M. Vignaesvaran.
“The Government pumped in RM100mil, we collected RM100mil from our registered employers,” he said when interviewed.
The Government’s portion, which was meant for employees of both HRDF-registered and non-registered employers, was already taken up completely.
“However, for the portion collected from the registered employers, less than 20% was utilised. So to encourage this uptake, we decided to allow the employees to apply and attend the training,” said Vignaesvaran.
He added that the consolidated fund would support more training programmes for employees of small and medium enterprises and have a 35% skilled workforce by 2020.
In a circular dated Dec 22, Vignaesvaran said the unused levy under 1MalaysiaGRIP would be put into a consolidation fund effective April 1. The circular also urged employers registered with the fund to make use of their contributions by encouraging their employees to book dates for certification courses before April.
Did you find this article insightful?