What is Skills Development Levy (SDL)?
What is SDL - Skills Development Levy?
The Skills Development Levy (SDL) is a compulsory levy that employers must pay for every employee working in Singapore. This includes full-time, part-time, temporary, casual and foreign employees. SDL is paid by the employer and must not be deducted from employees' salaries.
The money collected goes to the Skills Development Fund, which supports workforce upgrading programmes and gives training grants to employers who send their employees for training. SDL is payable even if your company does not use these grants.
How is SDL calculated?
SDL is 0.25% of each employee's total monthly wages, including salary, bonus, commission, overtime and allowances, on the first $4,500:
- Minimum: $2 for employees earning less than $800 a month.
- Maximum: $11.25 for employees earning more than $4,500 a month.
Add up the SDL for all employees and round the total down to the nearest dollar.
How do I pay SDL?
SDL is due by the 14th of the following month.
- If you have local employees: pay SDL for all your employees, including foreign employees, together with your monthly CPF contributions to CPF Board.
- If you have only foreign employees: pay SDL directly to the Skills and Workforce Development Agency (SWDA) through the GoBusiness Dashboard.
Who is exempted?
Exemptions are limited to:
- Domestic servants, chauffeurs and gardeners employed outside the employer's trade or business
- Students on internships approved by their educational institution
- Employees who do not render any services in Singapore in a given month
SDL is still payable for employees who work for less than a month. You can find more information in the SDL FAQ.
