Skills Development Levy (SDL)

All employers must pay SDL for each of their employees working in Singapore.

Who Must Pay SDL?

  • All employers must pay SDL for each of their employees working in Singapore.
  • SDL applies to all employees including full-time, casual, part-time, temporary and foreign workers working in Singapore.
  • SDL is a separate levy from Foreign Workers Levy (FWL) and Central Provident Fund (CPF).
  • SDL is not chargeable on the remuneration in any month of the following categories of people:
    • Domestic helpers, chauffeurs and gardeners who are wholly and exclusively employed by an individual otherwise than in connection with his trade, business, profession or vocation.
    • Employees whose employment commence and cease in the same month, and are employed by the same employer for periods amounting to 31 days or less. 
    • Employees who are recruited by an employer in Singapore but are deployed to work overseas, and do not render services wholly or partly in Singapore in relation to a month.

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How Much Is The Levy?

  • For employees earning up to S$4,500, the levy rate is 0.25% of the gross monthly remuneration or S$2, whichever is greater.
  • For employees earning above S$4,500, the levy amount is S$11.25.
Employee's Monthly Remuneration1  Levy Amount 
S$0 - S$800 S$2
S$801 - S$4,500 0.25% of monthly remuneration
Above S$4,500 S$11.25

1Gross Monthly Remuneration refers to any wage, salary, commission, bonus, leave pay, overtime pay, allowances (including housing or other like allowances) and other emoluments paid in cash.

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When Must I Pay The Levy?

  • The levy must be paid by the 14th day of the month for the preceding month.
  • A penalty of 10% per annum will be imposed on the outstanding amount for late payment.
  • The CPF Board collects the levy on behalf of the Singapore Workforce Development Agency (WDA).
  • You can pay your SDL together with your CPF contributions.
  • If you only have foreign employees, you can pay SDL directly to WDA by:
    • Interbank GIRO OR
    • issuing a cross cheque payable to ‘Skills Development Fund’2
2Remember to include details such as your business’ name, Unique Entity Number (UEN), period of payment, contact person and business’ address.

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Where Can I Find More Information?

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