Skills Development Levy (SDL): What Employers Need to Know
As part of Singapore’s efforts to support workforce upgrading and ensure continuous employee development, businesses are required to pay the Skills Development Levy (SDL). This compulsory levy contributes to the Skills Development Fund (SDF), which funds various workforce development programs and provides training grants for employees.
What is the SDL?
The SDL is a monthly levy businesses must pay on all employees—local and foreign—working in Singapore. This includes full-time, part-time, casual, and temporary employees. However, domestic servants, gardeners, or chauffeurs are exempt from the levy.
The SDL payments go directly to the SkillsFuture Singapore Agency (SSG) and support national Continuing Education and Training programs, enabling employees to upskill and improve productivity.
How to Calculate and Pay SDL
The SDL rate is set at 0.25% of the monthly remuneration for each employee, with the following rules:
- Minimum payable amount: $2 (for employees earning less than $800/month)
- Maximum payable amount: $11.25 (for employees earning more than $4,500/month)
How to Pay SDL
There are several convenient ways to make the SDL payments:
- CPF EZPay via CPF Website:
- Pay SDL along with CPF contributions.
- Automatically calculates your SDL payable amount.
- Pay SDL for foreign employees in the same transaction.
- SDL Payment & Declaration via GoBusiness Dashboard:
- Pay outstanding SDL or SDL for foreign employees directly through the GoBusiness Dashboard.
- Use this if you have missed a payment or hired only foreign employees.
Late Payment Penalties
Late payment of SDL may result in a 10% penalty on the outstanding amount each year.
