SDL Overview

SDL stands for the Skills Development Levy. It is a compulsory contribution that all employers in Singapore must make for each employee. The purpose of this levy is to fund training and workforce development initiatives through the national Skills Development Fund.

Skills Development Levy

This is a monthly payment made by employers on behalf of their employees to support continuing education and skills upgrading. The levy applies to full time staff, part time workers, contract hires, and foreign employees working in Singapore.

CPF Skills Development Levy

Although not directly managed by the Central Provident Fund Board, the skills development levy is commonly submitted together with monthly CPF contributions. The CPF e submission system includes a section where employers can declare and pay the levy amount alongside CPF dues for Singapore citizens and permanent residents.

Purpose of the SDL

The levy supports national learning initiatives such as job training, professional courses, and upskilling programs. Funds collected go to the Skills Development Fund which is managed by SkillsFuture Singapore.

Who Must Pay the SDL

All employers who hire staff in Singapore must pay this levy, regardless of the employee’s nationality or employment type. This includes temporary staff, part time workers, and those on work permits or employment passes.

How SDL is Calculated

The amount is based on the employee’s gross monthly wage. The standard calculation is zero point two five percent of the total monthly pay. However, the amount payable is subject to a minimum of two dollars and a maximum of eleven dollars and twenty five cents per employee each month.

Paying the SDL

Employers can pay the levy through different channels including CPF e submission, the SDL website, AXS stations for smaller firms, or by cheque if no CPF contributions are applicable. Online submission is encouraged for efficiency and compliance tracking.

When SDL Must Be Paid

The payment is due within fourteen days from the end of each month. Failure to pay on time may result in late payment penalties which can add up significantly if left unresolved.

Exemptions from SDL

Certain individuals are excluded from the levy, such as domestic workers hired for personal use, students from local or overseas tertiary institutions, and employees who were posted overseas for the full month with no work done in Singapore.