UNIT 3: HR RELATED CALCULATION

1. Human Resource Development Fund (HRDF)

1.1. Background •corporatised on 16 May2001 under Pembangunan Sumber Manusia Berhad Act, 2001. •HRDC is a Company Limited by Guarantee and incorporated under Companies Commission of Malaysia (SSM). •Previously known as Human Resources Development Council

1.2. Roles •collection of human resources development levy (HRD Levy) •disbursementof financial assistance through training grants; •driving force in training and development of the workforce; and •enhance the knowledge, skills and capabilities of the workforce through effective management of the HRDF.

1.3. 1% of the Gross Salary

1.4. Skim Bantuan Latihan (SBL) -Annual Training Plan -SME On-The-Job Training -Retrenched Workers Training -Purchase of Training Equipment and -Setting- Up of Training Room

2. Manpower Budgeting

2.1. COMMON STEPS TO MAKE HR BUDGET 1. Review historical financial performance 2. Choose a budgeting strategy 3. Analyze real time performance data 4. Get a comprehensive view of how finance impacts operations

2.2. fund allocates to all HR processes enterprise wide

2.3. Include funds allocated to: •hiring •Salaries •Benefits •talent management •Training •succession planning •workforce engagement •employee wellness planning.

2.4. HR budgets use the following from every department •financial information •performance results •historical data .

2.5. WHY DO WE NEED MANPOWER BUDGETING? -prevents over hiring -helps organizations understand their staffing needs -prevents understaffing -aids in attracting top talent -helps create a plan for satisfying talent and reduces turnover

2.6. HR BUDGET INCLUDES BUT ISN’T LIMITED TO Complex forecasting on number of employees Employee turnover rates Salary data Recruitment budget New benefits programs Training and development Payroll costs Overtime Incentive compensation Strategic planning (data/consultants) HR databases Intranet design and maintenance

3. Employee Provident Fund (EPF)

3.1. EPF is a compulsory savings scheme for employees so that they will have sufficient funds in their post retirement years.

3.2. Membership is compulsory for: All Malaysian employees working in private sector Public sector employees (certain cases) Membership is voluntary for Foreign employees Domestic servants Self employed persons

3.3. 41(2) of the EPF Act 1991 45(2) of the EPF Act 1991

3.4. Retirement Withdrawal Scheme 1. Lump sum withdrawal 2. Periodical payment withdrawal scheme 3. Annual dividend withdrawal scheme 4. Annuity scheme

4. Social Security Organization (SOCSO)

4.1. Social security systems are designed to reduce financial stress in the event of loss or reduction of income. Social security may protect income when people are faced with: -Unemployment -Post retirement Accident or serious illness -Childbirth -Death of income earner

4.2. SOCIAL SECURITY FORPOST RETIREMENT -Voluntary savings & investment -State provided pensions -Employer provided pensions -Joint employer employee contribution saving schemes

4.3. EMPLOYEES SOCIAL SECURITY ACT -to establish an insurance scheme which ensures employees involved in a work related accident, or; -Who contract a work related disease receive compensation.

4.4. Wages -Salary -Overtime payment -Commission -payment for leave, sick, annual, rest day, -public holidays, maternity and others -allowances, shift, incentive, housing, food, cost of living and others. -Payments paid at an hourly rate, daily rate, weekly rate, task or piece rate Not wages -Annual bonus -Statutory fund for -employees gratuity -Payments or claims for mileage -Dismissal or retrenchment