The Skills Development Levy (SDL) is a mandatory levy that all employers will have to pay to their employees working in Singapore. The SDL is paid to the CPF Board who will then place the monies into the Skills Development Fund. This fund is managed by SkillsFuture Singapore (SSG). The monies are used to support the programmes under the Continuing Education Training (CET) System.

The SDL is a compulsory payment for all employment types and nationalities. This means that regardless of whether the employee is on a full time, part-time or temporary contract or whether he or she is a Singaporean or foreigner, the SDL must be paid.

The amount of SDL to be paid is calculated at a rate of 0.25% up to the first $4,500 of an employee’s total monthly wage. The maximum amount of levy payable for an employee is $11.25 (i.e., 0.25% x $4,500). The minimum amount of SDL of each employee is $2.

The SDL is to be paid as a total amount after adding up the total amount of SDL for each employee. The total amount is to be rounded down to the nearest dollar.



Employee 1, Salary: $1,000, SDL payable: $2.50

Employee 2, Salary: $2,000, SDL payable: $5.00

Employee 3, Salary: $5,000, SDL payable: $11.25

Total: $18.75

Amount payable: $18 (rounded down to the nearest dollar)


All SDL monies are to be paid together with the employee’s CPF contributions. If the company only employs foreign employee and do not pay CPF contributions then the payment for the SDL should be made directly to the SSG.


When in doubt, seek legal advice or consult an experienced ACRA Filing Agent.


Yours Sincerely,
The editorial team at Singapore Secretary Services

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