The SDL collected are channelled to the Skills Development Fund (SDF), which is used to support workforce upgrading programmes and to provide training grants to you when you send your employees for training under the National Continuing Education Training system.
The SDL and SDF are administrated by the SkillsFuture Singapore Agency (SSG).
You have to pay SDL for all your employees working in Singapore, including:
- employees employed on permanent, part-time, casual and temporary basis
- foreign employees on Work Permits, S Pass, Employment Pass and Personalised Employment Pass holders.
The SDL for foreign employees is in addition to the Foreign Worker Levy payable to the Ministry of Manpower.
Under the SDL Act, you are required to contribute SDL for all your employees* up to the first SGD4,500 of each employee’s total monthly wages at a levy rate of 0.25% or a minimum of SGD2 (for total wages of SGD800 or less), whichever is higher.
* Employees include full-time, casual, part-time, temporary and foreign employees rendering services wholly or partly in Singapore.
The total monthly wages includes any salary, commission, bonus, leave pay, overtime pay, allowance and other payments in cash.
After you have computed the SDL for each employee, you need to add up the total amount of SDL payable and round down to the nearest dollar.
You may wish to visit Skills Development Levy (SDL) System or use SDL Calculator online for detailed information and current updates.
Please refer to the below link with Annex A for the contents of the table are meant to provide general guidance, and the answers provided are only indicative in nature. For the avoidance of doubt, the said contents are not to be construed as limiting or prejudicing the operation of the Skills Development Levy Act (Chapter 306) or the subsidiary legislation made thereunder.
|Annex A – General Guidance For SDL|
Source of Information for SDL & its related matters is from the SkillsFuture Singapore Agency, Singapore.