Who are the Employees Excluded From The SDL?

Who are exempted from paying Skills Development Levy (SDL)?

Is there any exemption to pay SDL?

There are a few circumstances where businesses are exempted from the monthly SDL payment for their employees:

• Those who are not in Singapore companies or businesses’ payroll.
• Singapore companies or businesses that hire workers outside the country and whose jobs require them to work overseas. For example, a Singapore registered company that hires an employee in the U.S. for the purpose of increasing business in France.
• Singapore companies or businesses that hire a worker in Singapore but proceeds to send them abroad to work in a satellite office. This could be, for example, a Singapore resident is transferred to the Myanmar or India office.
• Fees paid to both local and foreign directors does not require a Skills Development Levy (SDL) contribution. However, if they are paid a monthly salary then the SDL will be applicable.
• Self-employed individuals do not need to remit a monthly SDL for their earnings or profits. However, if they hire employees or contractors on their payroll then the SDL will be applicable.
• Stipends paid to interns or students engaging in work during vacation including those who are on Work Holiday Pass (WHP) are not applicable for SDL contributions.
• Employees hired by individuals such as those tasked to fulfill household duties do not qualify for SDL contributions. Examples of these are gardeners, chauffeurs, and domestic helpers (aka: maids).

Click here to learn more about SDL