The Skills Development Levy (SDL) is 0.25% of an employee's total monthly wages, subject to a minimum of S$2 and a maximum of S$11.25 per employee per month. You pay it for every employee working in Singapore — including foreign workers — and it is collected together with your CPF contributions.
This guide explains the rate, who it covers, and how it's paid.
What is the Skills Development Levy?
SDL is a compulsory levy that employers pay for all their employees. It funds the Skills Development Fund, which supports workforce training and is administered by SkillsFuture Singapore (SSG). The CPF Board collects SDL on SSG's behalf, alongside CPF.
Unlike CPF, SDL is not a shared contribution — it is paid entirely by the employer, and nothing is deducted from the employee.
The SDL rate, minimum and maximum
| Value | |
|---|---|
| Rate | 0.25% of total monthly wages |
| Minimum | S$2 per employee per month |
| Maximum | S$11.25 per employee per month (wages of S$4,500 and above) |
Because of the minimum and maximum, SDL is effectively a small, capped amount per employee.
Confirm the current rate with SkillsFuture Singapore or the CPF Board.
Worked examples
| Monthly wage | SDL calculation | SDL payable |
|---|---|---|
| S$700 | 0.25% = S$1.75 → below the S$2 floor | S$2.00 |
| S$3,000 | 0.25% = S$7.50 | S$7.50 |
| S$5,000 | capped at S$4,500 → 0.25% × S$4,500 | S$11.25 |
Who you pay SDL for
You pay SDL for all employees rendering services in Singapore, including:
- Singapore Citizens and Permanent Residents;
- foreign employees on Employment Passes, S Passes and Work Permits;
- part-time, casual, temporary and ad-hoc employees.
This is a key difference from CPF, which is only payable for Citizens and PRs. See our CPF contribution rates guide for who is in scope for CPF.
How SDL is paid
SDL is bundled into your monthly CPF submission. When you submit and pay through CPF eZpay, the SDL is calculated and collected at the same time — there is no separate filing. It fits into the wider monthly payroll cycle.
How AimmPayroll handles SDL
AimmPayroll calculates SDL automatically for every employee — applying the 0.25% rate with the S$2 minimum and S$11.25 cap — and includes it in the CPF eZpay file alongside CPF, so it is paid in one step. Start free for up to three employees.