Calculate Skills Development Levy
Enter monthly remuneration and number of employees to calculate your SDL obligation.
Total monthly SDL payable
SDL Breakup
| Monthly Remuneration per Employee | |
| SDL Rate | 0.25% |
| SDL per Employee (min $2 if wage > $800) | |
| Number of Employees | |
| Total Monthly SDL | |
| Annual SDL | |
SDL is payable by employers for all employees (local and foreign). Rate is 0.25% of monthly remuneration with a minimum of $2 per employee earning over $800.
What is the Skills Development Levy?
The Skills Development Levy (SDL) is a mandatory contribution by employers in Singapore to fund workforce training and upgrading programs. Key points:
- Payable for all employees — local and foreign
- Rate: 0.25% of gross monthly remuneration
- Minimum: $2 per employee earning over $800/month
- No SDL for employees earning $800 or below
- Collected by CPF Board along with CPF contributions
How SDL Funds Are Used
SDL contributions go to the Skills Development Fund (SDF), which supports:
- SkillsFuture programs: Training subsidies for employees
- Workforce development: Industry transformation initiatives
- Training grants: Employers can apply for SDF grants to offset training costs
- National productivity: Skills upgrading across industries
SDL = Max($2, 0.25% x Monthly Remuneration) per employee
Frequently Asked Questions
Common questions about Skills Development Levy
What is the SDL rate in Singapore? −
The SDL rate is 0.25% of the employee's total monthly remuneration, with a minimum contribution of $2 per employee who earns more than $800 per month. There is no SDL payable for employees earning $800 or less per month. The levy is paid entirely by the employer and cannot be deducted from the employee's salary.
Who pays the SDL — employer or employee? +
SDL is paid entirely by the employer. It cannot be deducted from the employee's wages. The SDL is collected monthly by the CPF Board along with CPF contributions (for local employees) or separately (for foreign employees). Late payment attracts a penalty of 10% of the outstanding amount.
Are there any exemptions from SDL? +
SDL is generally payable for all employees regardless of nationality, employment type, or working hours. However, employees earning $800 or less per month are exempt. Domestic workers, self-employed persons, and certain government employees may also be exempt. National Servicemen on full-time NS are exempt during their service period.
How is SDL used by the government? +
SDL contributions go into the Skills Development Fund, which finances SkillsFuture programs, workforce training subsidies, and industry transformation initiatives. Employers can benefit by applying for SDF training grants to subsidize their employees' training costs. The fund supports Singapore's goal of building a skilled and adaptable workforce.
Have more questions? Check our knowledge base or contact us.
