The Human Resource Development Council, which has been set up under the HRD Act of 2003, has, inter alia, been vested with the responsibility to administer, control and operate the National Training Fund. This Fund provides the necessary incentive to employers to develop their human resources.
The HRDC revised the scheme at regular intervals so as to encourage more effective human resource development at the national level and to emphasise targeted training while at the same time minimise the existing loopholes in the previous system in order to provide training opportunities to the maximum number of employees. The revised scheme aims at encouraging a targeted approach to training whereby the ultimate long term objective would be to develop a training grant system where all training conducted by firms would be based on a proper training needs analysis and a corporate training plan.
Employers can recover up to 75% of course fees depending on their tax rate. Grants awarded by the HRDC are based on a cost-sharing principle, i.e., grants will meet only part of the costs incurred for training by employers since they are not intended to be a subsidy.