🚀 Skills Development Levy (SDL) Enforcement Exercise 2025 – What Employers Need to Know!

Are you an employer in Singapore? Ensure compliance with the Skills Development Levy (SDL) to avoid penalties! SkillsFuture Singapore (SSG) will begin its SDL enforcement exercise for the Year of Assessment 2025 (covering January 2024 – December 2024) from May 2025 onwards.

 

✅ What is the Skills Development Levy (SDL)?

The Skills Development Levy (SDL) is a mandatory monthly contribution for all employers in Singapore under the SDL Act. The funds collected are used to: 

🧑‍💼 Who Needs to Pay?

  • ✔️All employees working in Singapore including Foreign employees (even if they don’t contribute to CPF)

💰 How is SDL Calculated?

🧾 SDL is charged at 0.25% of an employee’s monthly total wages, with a minimum of SGD 2 and a maximum of SGD 11.25 per employee per month. 

📊 Quick SDL Calculation Guide:

💵 Employee’s Monthly Salary🔢 SDL Payable
Below SGD 800SGD 2
SGD 4,500 and aboveSGD 11.25
Important Note: SDL is paid in addition to CPF contributions.

🔄 How to Pay SDL?

📌 If you contribute to CPF:

  • SDL is automatically included in your monthly CPF payments for all Singapore Citizen and Singapore Permanent Resident employees via CPF EZPay 
  • You’ll need to manually input the SDL payable for foreign employees in CPF EZPay. 

📌 If you hire only foreign employees:

🚨 Avoid Penalties! Employers who fail to pay SDL may face enforcement actions from May 2025.

🚀 Why is SDL Important for Businesses?

Access government-funded training grants for employees 
Upskill your workforce & improve business productivity 
Meet legal obligations & avoid penalties 

📢 Let Us Handle Your Payroll & SDL Compliance!

Managing payroll and SDL contributions can be time-consuming.
Our expert payroll services ensure accurate and timely payments, so you stay compliant without the hassle!

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