How to Custom HRDF Contribution Rate?

How to Custom HRDF Contribution Rate?

The default HRDF contribution categories have pre-defined contribution rates in compliance with the HRDF requirements, hence the contribution rate is seldom changed. In the event that requires you to apply custom HRDF rate in the system, please follow the steps below to make the changes. 

STEP 1 : Go to Payroll menu > Setting > Statutory Setting > HRDF Setting.
STEP 2 : HRDF Category: Select "Custom Rate Option" from the drop-down menu.
STEP 3 : Update Employee Percentage (%) or/and, update Employer Percentage (%).
STEP 4 : [Optional] Tick "Deduct NPL" to exclude NPL from HRDF wages. 
STEP 5 : Save.

The gif below demonstrates the steps to update the custom employee/employer HRDF contribution rate (%).



The implication of Custom HRDF
  1. The employer/employee contribution of HRDF will be computed at the percentage configured in the custom HRDF screen when salary is processed.
  2. For example, if the custom HRDF rate for the employer is 0%, the employer's HRDF contribution rate will be computed at 0% of the total HRDF wages for the company, hence the HRDF contribution by the employer will be RM 0.00 in payroll. 




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