SDL Calculator (Singapore)
Updated November 2026 · Free · No sign-up
Calculate the Skills Development Levy (SDL) — the employer-paid levy on EVERY employee: 0.25% of monthly wages, minimum $2, capped at $11.25 (wages ≥ $4,500), funding SkillsFuture training grants.
Quick answer: SDL = 0.25% of each employee’s monthly total wages — minimum $2 (wages ≤ $800), maximum $11.25 (wages ≥ $4,500). Employer-paid (never deducted from staff), covering ALL employees — local, foreign, part-time, casual — remitted with CPF via the same portal.
The Levy
| Monthly wages | SDL |
|---|---|
| ≤ $800 | $2 flat minimum |
| $800 - $4,500 | 0.25% of wages |
| ≥ $4,500 | $11.25 cap |
Coverage is TOTAL: every employee on the payroll — citizens, PRs, work-pass holders, part-timers, students, directors drawing salary — regardless of CPF status (that’s the difference from CPF itself). "Wages" = total remuneration including OT, bonuses (in the month paid), commissions; levy computes per employee per month, rounded down to the cent, remitted monthly with CPF submissions (CPF Board collects for SSG).
Worked Example
A 15-person team — 10 at $3,200 (SDL $8 each), 5 above $4,500 ($11.25): monthly SDL = 80 + 56.25 = $136.25; annually ~$1,635 — small, but non-payment accrues penalties and surfaces in audits constantly because bonus months change individual levies.
What It Funds
The Skills Development Fund behind SkillsFuture: course-fee subsidies (up to 70%+ for SMEs), absentee-payroll funding during training, and workforce-transformation grants. Employers paying SDL should be CLAIMING it back through subsidized training — the levy is a use-it-or-waste-it membership fee for the subsidy system.
Compliance Notes
Bonus months: the levy computes on that month’s total wages (an AWS December often pushes everyone to the $11.25 cap for that month); back-payment of missed SDL carries 10% annual late interest. Foreign-worker-only employers still pay (no CPF ≠ no SDL). Verify current rates at the SSG/CPF portals — the structure has been stable but reviews recur.
Frequently Asked Questions
What is the SDL rate?
0.25% of each employee’s monthly total wages — minimum $2, capped at $11.25 once wages reach $4,500; employer-paid, never deducted from salaries.
Who must pay SDL?
Every employer, for every employee — local or foreign, full/part-time, casual, CPF-exempt or not; it’s the broadest payroll levy in Singapore.
Do bonuses affect SDL?
Yes — the levy computes on the month’s total wages, so AWS/bonus months push many employees to the cap for that month.
What does SDL fund?
The Skills Development Fund behind SkillsFuture — course subsidies, absentee payroll support, and transformation grants employers can claim back.
How is SDL paid?
Monthly, alongside CPF submissions through the CPF e-Submit portal (CPF Board collects on SSG’s behalf) — late payment accrues 10% annual interest.
✓ Formula verified • Last updated: November 3, 2026