# Skills Development Levy (SDL): rate, limits and how employers pay it

> How much SDL an employer pays for each employee, the $2 minimum and $11.25 maximum, who it applies to, how the total is rounded and how it is paid with CPF.

- Tool: [SDL Calculator](https://toolsg.com/en/sdl-calculator)
- Language: en (available: en, zh)
- Last verified against official sources: 2026-10-29
- Source site: ToolSG — a planning guide, not official or financial advice. Cite the agencies listed under Sources.

## Key figures at a glance

| Fact | Value | Source |
| --- | --- | --- |
| Rate | 0.25% of monthly total wages — Per employee, for the calendar month. | [CPF Board](https://www.cpf.gov.sg/employer/employer-obligations/skills-development-levy) |
| Minimum | $2 — For an employee earning less than $800 a month. | [CPF Board](https://www.cpf.gov.sg/employer/employer-obligations/skills-development-levy) |
| Maximum | $11.25 — For an employee earning more than $4,500 a month. | [CPF Board](https://www.cpf.gov.sg/employer/employer-obligations/skills-development-levy) |
| Who it applies to | All employees working in Singapore, including foreigners | [CPF Board](https://www.cpf.gov.sg/employer/employer-obligations/skills-development-levy) |
| Rounding | Total across employees, rounded down to the dollar | [CPF Board](https://www.cpf.gov.sg/employer/employer-obligations/skills-development-levy) |

## What SDL is

The Skills Development Levy is paid by the **employer**, not deducted from the employee. It applies to **all employees working in Singapore, including foreign employees**.

## How it is worked out

**SDL = 0.25% of the employee's total wages for the month**, but never less than **$2** or more than **$11.25**:

| Monthly wages | SDL per employee |
| --- | --- |
| Under $800 | $2.00 |
| $800 to $4,500 | 0.25% of wages |
| Above $4,500 | $11.25 |

There is no $8,000 ceiling like CPF's Ordinary Wage ceiling. The levy simply stops rising at $11.25 once wages pass $4,500.

## Rounding

SDL is worked out for each employee, **added up across all employees, and the total is rounded down to the nearest dollar**. The calculator keeps the sum exact before rounding down.

## How it is paid

SDL is paid **together with CPF contributions**. With CPF EZPay, SDL is worked out automatically for Singapore Citizen and PR employees. SDL for foreign employees has to be entered by hand.

## Worked examples

| Team | SDL per month |
| --- | --- |
| 5 employees on $3,000 | 5 × $7.50 = $37.50 |
| 2 employees on $6,000 | 2 × $11.25 = $22.50 |
| 1 employee on $600 | $2.00 |
| All of the above | $62.00, so $744 a year |
| 4 employees on $1,234 | 4 × $3.085 = $12.34, paid as $12 |

## Common mistakes

- **Capping wages at $8,000.** That is CPF's ceiling; SDL has its own $11.25 maximum.
- **Skipping foreign employees.** SDL applies to them too.
- **Rounding each employee up.** The total is rounded down once.
- **Counting only basic pay.** Use the employee's total wages for the month.

## Related tools

- [Payroll cost calculator](https://toolsg.com/en/payroll-calculator) — SDL with employer CPF and levy.
- [CPF contribution calculator](https://toolsg.com/en/cpf-calculator) — CPF by age and wage.
- [Work pass levy calculator](https://toolsg.com/en/work-pass-levy-calculator) — the levy on foreign workers.

## Frequently asked questions

**What is the SDL rate?**

0.25% of each employee’s total wages for the month, with a minimum of $2 and a maximum of $11.25.

**When does the $11.25 maximum apply?**

For an employee earning more than $4,500 a month.

**Do I pay SDL for foreign employees?**

Yes. SDL applies to all employees working in Singapore, including foreign employees.

**How is the total rounded?**

The SDL for all your employees is added up and rounded down to the nearest dollar.

**How do I pay SDL?**

Together with CPF contributions. CPF EZPay works out SDL automatically for Singapore Citizen and PR employees; for foreign employees it has to be entered by hand.

**Is there a wage ceiling like CPF’s $8,000?**

No. The levy is capped at $11.25 per employee once wages exceed $4,500.


## Sources

- [CPF Board — Skills Development Levy](https://www.cpf.gov.sg/employer/employer-obligations/skills-development-levy) — Rate, minimum, maximum, who pays and how it is paid (page updated 27 Oct 2026).