CPFB | How do I calculate Skills Development Levy (SDL)?

How do I calculate Skills Development Levy (SDL)?

You have to contribute Skills Development Levy (SDL) for all your employees*. The levy payable for each employee is at 0.25% of their monthly total wages. The minimum payable is $2 for an employee earning less than $800 a month and the maximum is $11.25 for an employee earning more than $4,500 a month.

After you have computed the SDL for each employee, add up the SDL calculated and round the total amount down to the nearest dollar.

Here’s an example of an SDL computation:

Employee	Total wages for the calendar month	SDL Payable
A	$609.50	$2.00 (Minimum of $2.00 is payable because the total wages is less than $800)
B	$2,000.00	$5.00
C	$4,500.00	$11.25
D	$4,502.03	$11.25 (Maximum of $11.25 is payable because the total wages is more than $4,500)
E	$10,000.00	$11.25 (Maximum of $11.25 is payable because the total wages is more than $4,500)
Total SDL		$40.75
Total SDL Payable		$40.00 (rounded down to the nearest dollar)

You can visit SkillsFuture Singapore Agency (SSG)’s website for more information on the payment procedure and computation of SDL.

* Employees include full-time, casual, part-time, temporary and foreign employees working in Singapore..

Member

Employer

Employer services

Employer obligations

Making CPF contributions

Making Voluntary Contributions

Compliance and rectifications

Corporate service buyers

Employer services

Forms and e-applications

Past transactions