The Skills Development Levy is 0.25% of each employee’s total monthly wages, subject to a minimum of S$2 and a maximum of S$11.25 per employee per month. Every employer pays it, for every employee — local and foreign, full-time, part-time, temporary and casual — on top of CPF.
The essentials
| Rate | 0.25% of total monthly wages |
| Minimum | S$2 per employee per month |
| Maximum | S$11.25 per employee per month |
| Who pays | The employer, for every employee |
| How | Collected through CPF Board alongside CPF contributions |
| Deadline | Last day of the month; grace to 14th of following month |
How to calculate SDL
SDL falls into three wage bands. The 0.25% rate applies, but the minimum and maximum caps override at the edges:
Wages below S$800
0.25% of wages would be less than S$2, so the minimum of S$2 applies.
Wages S$800 to S$4,500
Straightforward 0.25% of total wages, rounded to the nearest cent.
Wages above S$4,500
0.25% would exceed S$11.25, so the maximum of S$11.25 applies.
Worked examples
| Monthly wages | 0.25% of wages | SDL payable |
|---|---|---|
| S$500 | S$1.25 | S$2.00 (min) |
| S$1,500 | S$3.75 | S$3.75 |
| S$3,000 | S$7.50 | S$7.50 |
| S$4,500 | S$11.25 | S$11.25 |
| S$8,000 | S$20.00 | S$11.25 (max) |
Who it applies to
SDL coverage is broader than CPF. CPF is payable only for Singapore Citizens and Permanent Residents. SDL applies to every employee, including foreign workers on Work Permits, S Passes, and Employment Passes.
It covers full-time, part-time, temporary and casual employees. There are no exemptions based on company size, industry, or the number of employees.
When and how to pay
SDL is collected by the CPF Board alongside CPF contributions. You do not submit SDL separately — it is included in your monthly CPF submission.
The payment deadline matches CPF: due by the last day of the month, with a grace period to the 14th of the following month before late payment interest of 1.5% per month applies.
For employees not covered by CPF (foreign workers), SDL is still collected through CPF Board — you submit SDL for them in the same CPF submission.
What SDL funds
SDL contributions go to the Skills Development Fund, administered by SkillsFuture Singapore (SSG). The fund supports national workforce development programmes including SkillsFuture credits, training grants, and course subsidies.
Employers who contribute SDL are eligible to apply for training grants from SSG to offset employee upskilling costs — including course fees, absentee payroll funding, and sector-specific programmes.
Where Critical Mass Cloud fits
Critical Mass Cloud calculates SDL automatically for every employee — including foreign workers — as part of each pay run. The S$2 minimum and S$11.25 maximum are applied per employee, and SDL is included in the CPF submission file alongside CPF contributions.
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- CPF contribution rates 2026 — collected alongside SDL
- Singapore SME compliance calendar 2026 — every payroll & tax deadline in one place
Questions
What is the SDL rate?
0.25% of each employee's total monthly wages, with a minimum of S$2 and a maximum of S$11.25 per employee per month.
Who pays SDL?
Every employer, for every employee — local and foreign, full-time, part-time, temporary and casual. There are no exemptions based on company size or employee nationality.
How is SDL calculated?
Multiply each employee's total monthly wages by 0.25%. If the result is below S$2, pay S$2. If the result exceeds S$11.25, pay S$11.25. Round to the nearest cent.
When is SDL due?
SDL is collected alongside CPF contributions. Payment is due by the last day of the month, with a grace period to the 14th of the following month before late interest applies.
Do I pay SDL for foreign employees?
Yes. SDL applies to all employees regardless of nationality or residency status — including work permit and S Pass holders. This is broader than CPF, which only covers Singapore Citizens and Permanent Residents.
What is the difference between SDL and CPF?
CPF is a retirement and social security fund for Singapore Citizens and PRs only, with rates up to 37%. SDL is a training levy for all employees at a flat 0.25%, funding SkillsFuture and national workforce development. Both are collected through CPF Board, but they serve different purposes.