In its simplest terms, the Skills Development Levy is a levy imposed by the Singaporean Government to create a source of funding for grants applied by employers to upgrade their employees under the national Continuing Education and Training system. Singapore’s Skillsfuture SG initiative was created to improve and leverage on the nation’s best resource: human talent. The pool of funds which subsidize those upgrading courses primarily come from the SDL.
Under the Singapore Law, all employers are required to pay SDL. According to the Skills Development Levy Act (Chapter 306), an ‘employer’ is a person (or entity) who pays or is liable to pay any remuneration to an employee.
However, there are two main exceptions:
Here is an example, courtesy of the official SDL website, on how to calculate the total SDL payable:
|Employee||Monthly Remuneration||SDL Payable||Remarks|
|A||$150.80||$2.00||Minimum of $2 is payable for those less than $800|
|B||$609.50||$2.00||Minimum of $2 is payable for those earning less than $800|
|C||$2,000.00||$5.00||0.25% of monthly remuneration|
|D||$4,500.00||$11.25||0.25% of monthly remuneration|
|E||$4,502.03||$11.25||SDL is on the first $4,500 only|
|F||$10,000.00||$11.25||SDL is on the first $4,500 only|
|Total SDL Payable||$42.00||Rounding down is done at the total for the whole organisation and not on each employee.|
Alternatively, here is a calculator you can use.
Yes they do! The is no distinction between foreign and local employees under the definition of ‘employee’ in the Skills Development Levy Act (Chapter 306)
Unfortunately there will be a penalty of 10% per annum for any amount outstanding, under the SDL regulations.
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