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Levies and donations

Skills Development Levy (SDL)

CPF Board collects Skills Development Levy (SDL) on behalf of the Singapore Workforce Development Agency (WDA). The SDL collected is channelled into the Skills Development Fund (SDF), which provide grants to employers who send their employees for training.

Under the SDL Act, employers are required to contribute SDL for all employees* up to the first $4,500 of gross monthly remuneration^ at a levy rate of 0.25%, subject to a minimum of $2, whichever is higher.

* Employees include full-time, casual, part-time, temporary and foreign employees rendering services wholly or partly in Singapore.

^ Remuneration is any wage, salary, commission, bonus, leave pay, overtime pay, allowance (e.g. housing) and other payments in cash.

Example of computation

Gross Monthly Remuneration
SDL Payable
Minimum of $2.00 is payable for remuneration below $800
Minimum of $2.00 is payable for remuneration below $800
0.25% of remuneration
0.25% of remuneration
Maximum of $11.25 is payable for remuneration above $4,500
Maximum of $11.25 is payable for remuneration above $4,500
Total SDL payable
$42.00 is payable

Total SDL Payable is $42.00. Cents should be ignored only when you arrive at the total SDL Payable.

Employers can pay SDL together with their employees’ CPF contributions. For employers with foreign employees only, they can pay SDL directly to WDA.

You may visit WDA’s website to find out more about the payment procedure and the computation of the total SDL payable.

 Last Updated on: Tuesday, February 04, 2014 at 5:25 PM
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