You must contribute Skills Development Levy (SDL) for all your employees*. The levy is calculated as follows:
- 0.25% of each employee's monthly total wages
- Minimum: $2 for employees earning less than $800 a month
- Maximum: $11.25 for employees earning more than $4,500 a month
*All employees working in Singapore, including permanent, part-time, casual, and temporary staff
After computing SDL for each employee, add up the amounts and and round the total 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 are 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 are more than $4,500)
|
|
E
|
$10,000.00
|
$11.25
(Maximum of $11.25 is payable because the total wages are more than $4,500)
|
|
Total SDL
|
$40.75
|
|
Total SDL payable
|
$40.00
(Rounded down to the nearest dollar)
|
Payment of SDL:
- For local employees: Pay SDL together with monthly CPF contributions to CPF Board
- For foreign employees only: Pay SDL directly to the Skills and Workforce Development Agency (SWDA)
You can visit this
webpage for more information on the payment procedure and computation of SDL.
