Skills Development Levy Calculator
Work out the Skills Development Levy an employer pays — 0.25% of total monthly wages on the first SGD 4,500, with a minimum of SGD 2 and a maximum of SGD 11.25 per employee, for one worker or a whole payroll.
Skills Development Levy Calculator
SDL payable by employers · 2026
Employer's obligation. SDL is paid by the employer for every employee — local and foreign, full-time and part-time — and is not deducted from the employee's pay. It is collected by the CPF Board together with CPF contributions.
Levy Breakdown
MONTHLYSDL at different wage levels
SDL is 0.25% of monthly wages, but never less than SGD 2 and never more than SGD 11.25. It reaches the SGD 11.25 cap once wages hit SGD 4,500. Per SkillsFuture Singapore.
| Monthly wage | 0.25% raw | SDL payable |
|---|---|---|
| SGD 500 | SGD 1.25 | SGD 2.00 |
| SGD 800 | SGD 2.00 | SGD 2.00 |
| SGD 1,000 | SGD 2.50 | SGD 2.50 |
| SGD 2,000 | SGD 5.00 | SGD 5.00 |
| SGD 3,000 | SGD 7.50 | SGD 7.50 |
| SGD 4,500 | SGD 11.25 | SGD 11.25 |
| SGD 6,000 | SGD 11.25 | SGD 11.25 |
| SGD 10,000 | SGD 11.25 | SGD 11.25 |
What the Skills Development Levy is
The SDL funds the Skills Development Fund, which supports workforce training and upgrading. Employers pay it on top of CPF contributions. Per SkillsFuture Singapore.
| Item | Detail |
|---|---|
| Rate | 0.25% of total monthly wages |
| Wage ceiling | First SGD 4,500 of wages only |
| Minimum | SGD 2 per employee per month |
| Maximum | SGD 11.25 per employee per month |
| Funds | The Skills Development Fund for workforce training |
Who pays and how
SDL is an employer obligation collected alongside CPF. Per CPF Board.
| Question | Answer |
|---|---|
| Who pays | The employer — not deducted from the employee |
| For which employees | All employees rendering services in Singapore: local & foreign, full-time and part-time |
| How it is collected | Through the CPF Board together with monthly CPF contributions |
| When | Monthly, by the due date for CPF contributions |
How SDL is worked out
SDL is 0.25% of wages up to SGD 4,500, then bounded by the minimum and maximum.
| Step | Formula |
|---|---|
| Wages counted | Lower of total monthly wages and SGD 4,500 |
| Raw levy | 0.25% × wages counted |
| SDL per employee | At least SGD 2, at most SGD 11.25 |
| Payroll total | Sum of SDL across all employees |
Skills Development Levy — Rate, Ceiling & Limits
The rate, wage ceiling, minimum and maximum that decide how much Skills Development Levy an employer pays for each worker in Singapore — sourced from SkillsFuture Singapore and the CPF Board.
The Numbers
The four figures that set every employee's levy.
Who Pays
SDL is an employer obligation for every worker.
Collection
How and when the levy reaches the fund.
SDL by Wage Level
The levy is 0.25% of monthly wages, bounded by the SGD 2 minimum and the SGD 11.25 maximum. It reaches the cap once wages hit SGD 4,500. Per SkillsFuture Singapore.
| Monthly wage | 0.25% raw | SDL payable |
|---|---|---|
| SGD 800 | SGD 2.00 | SGD 2.00 |
| SGD 1,000 | SGD 2.50 | SGD 2.50 |
| SGD 2,000 | SGD 5.00 | SGD 5.00 |
| SGD 3,000 | SGD 7.50 | SGD 7.50 |
| SGD 4,500 | SGD 11.25 | SGD 11.25 |
| SGD 6,000 | SGD 11.25 | SGD 11.25 |
| SGD 10,000 | SGD 11.25 | SGD 11.25 |
What Counts as Wages
The levy is charged on total wages, capped at the first SGD 4,500 each month. Per SkillsFuture Singapore.
| Item | Counted? | Notes |
|---|---|---|
| Basic salary | Yes | Part of total monthly wages |
| Overtime pay | Yes | Included in total wages |
| Commission & bonus | Yes | Included in total wages |
| Allowances | Yes | Included in total wages |
| Wages above SGD 4,500 | No | Charged on the first SGD 4,500 only |
Who Pays and When
SDL is an employer obligation collected alongside CPF. Per CPF Board.
| Question | Answer |
|---|---|
| Who pays | The employer — not deducted from the employee |
| For which employees | All employees: local & foreign, full-time, part-time, temporary, casual |
| How it is collected | Through the CPF Board together with monthly CPF contributions |
| When | Monthly, by the due date for CPF contributions |
Skills Development Levy — Key Points & Reference
The SkillsFuture and CPF Board rules that shape the Skills Development Levy — the 0.25% rate, the SGD 4,500 wage ceiling, the SGD 2 minimum and SGD 11.25 maximum, employer liability, and collection with CPF.
SDL rate is 0.25% of wages, up to SGD 11.25 per employee
The Skills Development Levy is 0.25% of an employee's total monthly wages, charged on the first SGD 4,500 only. The levy is never less than SGD 2 and never more than SGD 11.25 per employee per month.
The figures
Rate 0.25%; wage ceiling SGD 4,500; minimum SGD 2; maximum SGD 11.25. The cap is reached once monthly wages hit SGD 4,500.
Worked examples
SGD 800 → SGD 2.00; SGD 2,000 → SGD 5.00; SGD 3,000 → SGD 7.50; SGD 4,500 → SGD 11.25; SGD 10,000 → SGD 11.25 (capped).
SDL is payable for foreign employees too, not only locals
Employers pay SDL for all employees rendering services in Singapore — local and foreign, full-time, part-time, temporary, and casual. It applies even to foreign employees for whom no CPF contribution is due.
Who is covered
Every employee on the payroll, regardless of nationality or employment type. There is no exemption for part-time or casual staff.
Why it matters
Because SDL is separate from CPF, an employer can owe SDL on a foreign worker even when no CPF is payable for that worker.
SDL is collected by the CPF Board with monthly CPF contributions
The CPF Board collects SDL on behalf of SkillsFuture Singapore. Employers pay it monthly, together with their CPF contributions and by the same due date. SDL is not deducted from the employee's pay.
How to pay
SDL is submitted alongside monthly CPF contributions through the CPF Board, so no separate filing is needed for most employers.
Employer, not employee
The levy is an employer cost on top of wages and CPF. It cannot be recovered from the employee's salary.
Skills Development Levy — Frequently Asked Questions
Common questions about Singapore's Skills Development Levy — the 0.25% rate, the SGD 4,500 wage ceiling, who pays, how it is collected, and what it funds — with current SkillsFuture and CPF Board rules.
The Skills Development Levy (SDL) is a compulsory levy that employers in Singapore pay for every employee, on top of CPF contributions. It is 0.25% of an employee's total monthly wages, charged on the first SGD 4,500 of wages. The levies collected fund the Skills Development Fund, which supports workforce training and upgrading.
SkillsFuture — What is SDLSDL is 0.25% of total monthly wages, subject to a floor and a cap:
- Minimum SGD 2 per employee per month
- Maximum SGD 11.25 per employee per month
The maximum is reached once monthly wages hit SGD 4,500. For example, wages of SGD 3,000 give SDL of SGD 7.50, while wages of SGD 10,000 are capped at SGD 11.25.
SkillsFuture — What is SDLSDL is charged on the first SGD 4,500 of an employee's total monthly wages. Wages above SGD 4,500 are not subject to the levy, which is why the amount is capped at SGD 11.25 (0.25% of SGD 4,500). Total wages include basic pay, overtime, commission, bonus, and allowances.
SkillsFuture — What is SDLYes. SDL is payable for all employees rendering services in Singapore — local and foreign, full-time, part-time, temporary, and casual. There is no exemption based on employment type or nationality. It applies even to foreign employees for whom no CPF contribution is due.
CPF Board — SDLNo. SDL is an employer obligation and is paid by the employer on top of wages. It is not deducted from the employee's salary and cannot be recovered from the employee.
CPF Board — SDLSDL is collected by the CPF Board on behalf of SkillsFuture Singapore, together with your monthly CPF contributions. For most employers there is no separate filing — the levy is submitted alongside CPF.
CPF Board — SDLSDL is payable monthly, by the same due date as your CPF contributions. Because it is collected together with CPF, paying your monthly CPF on time generally settles the SDL for the same period.
CPF Board — SDLThe levies collected feed the Skills Development Fund, which supports workforce training and upgrading across Singapore. The fund backs training grants and programmes that help workers develop skills. The fund is administered by SkillsFuture Singapore.
SkillsFuture — What is SDLNo. SDL is separate from both CPF contributions and the Foreign Worker Levy. Each is a distinct obligation calculated on its own terms. An employer may owe SDL even where CPF is not payable for a worker, and SDL does not replace the Foreign Worker Levy.
SkillsFuture — What is SDLTotal monthly wages for SDL include basic pay, overtime pay, commission, bonus, and allowances. The levy is calculated on the total, but only up to the first SGD 4,500 each month. Amounts above SGD 4,500 are not charged.
SkillsFuture — What is SDLYes. The minimum SDL is SGD 2 per employee per month. For low monthly wages — below about SGD 800 — 0.25% of wages would be less than SGD 2, so the SGD 2 minimum applies instead.
SkillsFuture — What is SDLThe relationships behind the levy estimate. The exact figure is confirmed by the CPF Board when contributions are paid.
Wages Counted
Total monthly wages, capped at the ceiling.
First SGD 4,500 of wages only
Raw Levy
The rate applied to the counted wages.
0.0025 of the counted wage
SDL per Employee
The raw levy bounded by the min and max.
At least SGD 2, at most SGD 11.25
Worked Example
A SGD 3,000 wage sits between the limits.
SGD 4,500+ caps at SGD 11.25
Important Disclaimer
For educational and informational purposes only. This tool produces estimates of the Skills Development Levy (SDL) an employer pays in Singapore. It applies the 0.25% rate on total monthly wages, charged on the first SGD 4,500 of wages, subject to a minimum of SGD 2 and a maximum of SGD 11.25 per employee per month. Whole-payroll figures assume every employee earns the wage entered; where staff earn different wages, each employee's levy should be totalled individually for an exact figure.
No warranty of accuracy. While Money Snap sources these figures from SkillsFuture Singapore and the CPF Board, this tool is provided "as is" without any express or implied warranty as to accuracy, completeness, or timeliness. The exact levy is determined by the CPF Board when contributions are paid, and rounding practice for payroll totals is set by the CPF Board. The SDL rate, wage ceiling, minimum, and maximum are reviewed by the authorities and may be out of date here.
Not financial advice. Information provided is general in nature only and does not take into account your business's particular circumstances. Results do not constitute financial, tax, payroll, or legal advice. Before relying on any figure, confirm your obligations with SkillsFuture Singapore and the CPF Board, and consider advice from a qualified payroll or tax professional.
Limitation of liability. To the maximum extent permitted by law, Money Snap accepts no liability for any loss, damage, cost, or expense arising from reliance on this tool or the information it produces. Users are responsible for verifying all figures with SkillsFuture Singapore and the CPF Board before relying on them. Use is subject to our Terms of Use.
Official data sources
The 0.25% rate, SGD 4,500 wage ceiling, SGD 2 minimum and SGD 11.25 maximum are current SkillsFuture Singapore figures. SDL is collected by the CPF Board.