What is the Skills Development Levy (SDL) in Singapore?
The Skills Development Levy (SDL) is a compulsory levy employers are required to pay for all employees, in addition to CPF contributions. Regardless of whether an employee is a Singapore citizen, permanent resident or foreign national, the levy is mandatory.
The CPF Board collects the SDL on behalf of the SkillsFuture Singapore Agency.
Why is the Skills Development Levy (SDL) important?
The Skills Development Levy (SDL) is important because the amount collected is channelled to the Skills Development Fund. The fund is used to support workforce development through upgrading programmes, training grants, and more.
What are the Skills Development Levy (SDL) contribution rates?
The levy payable for each employee is 0.25% of their total monthly wage — the minimum payable is $2 for employees earning less than $800 a month, and the maximum payable is $11.25 for employees earning more than $4,500 a month.
How do I calculate Skills Development Levy (SDL) payment amounts?
You can use the SDL calculator for easy calculations, or the auto-computation feature under CPF EZPay when you pay for SDL together with your CPF contributions.
Take note that the auto-computation feature under CPF EZPay only auto-computes for Singapore citizens and permanent resident employees. You’ll need to manually input the SDL payable for foreign employees.
Need help with Skills Development Levy (SDL) deductions?
Payroll can be incredibly complex and time-consuming when you’re dealing with so many different calculations. Employment Hero is an all-in-one HR and payroll software that is IRAS-compliant, and can help you streamline SDL deductions, CPF calculations and more, so you can feel confident each pay run.
For more helpful tips, check out our payroll guide, HR compliance guide, or guide to hiring employees in Singapore.
Keen to find out more? Book a demo with us today!
Disclaimer: The information in this article is current as at 31-Oct-2022, and has been prepared by Employment Hero Pty Ltd (ABN 11 160 047 709) and its related corporate bodies (Employment Hero). The views expressed in this article are general information only, are provided in good faith to assist employers and their employees, and should not be relied on as professional advice. The Information is based on data supplied by third parties. While such data is believed to be accurate, it has not been independently verified, and no warranties are given that it is complete, accurate, up-to-date or fit for the purpose for which it is required. Employment Hero does not accept responsibility for any inaccuracy in such data and is not liable for any loss or damages arising directly or indirectly as a result of reliance on, use of or inability to use any information provided in this article. You should undertake your own research and seek professional advice before making any decisions or relying on the information in this article.
