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Skills Development Levy (SDL) System

What is SDL?

As required by law under the Skills Development Levy (SDL) Act, employers are required to pay a monthly SDL for all employees rendering services in Singapore, including foreign employees and employees employed on casual, part-time, or temporary basis. Domestic servants, gardeners or chauffeurs are exempted from the SDL Act.

The SDL payable is at 0.25% of the monthly remuneration for each employee, with the minimum payable of $2 (for an employee earning less than $800 a month) and a maximum of $11.25 (for an employee earning more than $4,500 a month).

All SDL collected are channelled to the Skills Development Fund (SDF) which is used to support workforce upgrading programmes and to provide training grants to employers when they send their employees to attend training under our national Continuing Education and Training system. The SDL and SDF are administrated by the Singapore Workforce Development Agency (WDA).

For more information on SDL, please refer to our Frequently Asked Questions (FAQ).

With effect from 25 March 2015, employers who contribute SDL through CPF Board’s CPF e-Submit@web portal can tap on the convenience of the new auto-computation feature to automate the calculation of the SDL liabilities for your local employees. For more information, please refer to SDL Frequently Asked Questions (FAQ) for more details.

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