What is Skills Development Levy (SDL)?
What is SDL - Skills Development Levy?
The Skills Development Levy (SDL) is a compulsory cost for any employer that hires full-time, part-time, temporary, casual, or foreign employees.
The funds collected are used to support workforce upgrading programs and to provide training grants to a company when it sends its employees for training.
How is SDL calculated?
Employers required to contribute up to first $4,500 of each employee’s total monthly wages at a levy rate of 0.25% or a minimum of $2 (for total wages of $800 or less), whichever is higher. You can pay SDL with your employees’ monthly CPF contribution or pay the SDL directly to SkillsFuture Singapore Agency.
There are some exemptions for certain classes of employees such as chauffeurs and domestic helpers, certain students, or an employee who does not render any services in Singapore in relation to a month. You can find more information here.
Payment procedure of SDL
Below are the steps to pay your Skills Development Levy (SDL).
- Go to the payment page;
- Tick the box "AGREE", then click "ACCEPT";
- Enter your company’s UEN and click SUBMIT;
- Select PAYMENT TYPE as RELEVANT MONTH;
- Choose the month you are paying for (e.g. JUL 2019 to JUL 2020);
- Enter amount of SGD XX.XX and click ADD PAYMENT - A column below will appear;
- Click PROCEED TO PAY;
- You may use your credit card to pay for the SDL expenses.