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. The employer pays it for all employees working in Singapore, including foreign employees, 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 all employees working in Singapore |
| How | Collected through CPF Board alongside CPF contributions |
| Deadline | With CPF, by the last day of the 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.
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 is payable for all your employees working in Singapore, including foreign 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: CPF for each month's wages is due on the last day of that month. CPF Board takes enforcement action if it is still unpaid by the 14th of the following month.
For employees not covered by CPF (foreign employees), SDL is still collected through CPF Board — you submit SDL for them in the same CPF submission.
Add up the SDL for all employees, then round the total down to the nearest dollar. If SDL is paid late, CPF Board may charge a penalty of 10% a year on the amount outstanding.
What SDL funds
SDL contributions go to the Skills Development Fund, collected by CPF Board for the Skills and Workforce Development Agency (SWDA), which was formed on 1 July 2026 from SkillsFuture Singapore and Workforce Singapore.
Where MassAdmin fits
MassAdmin calculates SDL in every pay run at 0.25% of monthly wages, between the S$2 minimum and the S$11.25 maximum.
You pay SDL with CPF through CPF EZPay.
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Sources
- Source: CPF Board, Skills Development Levy (updated 2 July 2026). Checked 10 October 2026.
- Source: CPF Board, Making CPF contributions (updated 7 July 2025). Checked 10 October 2026.
- Source: MOM, press release of 24 June 2026. Checked 10 October 2026.
This guide is for general information only and does not constitute legal or financial advice.
Related
- 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?
The employer pays it for all employees working in Singapore, including foreign employees.
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 it is above S$11.25, pay S$11.25. Add up the SDL for all employees, then round the total down to the nearest dollar.
When is SDL due?
SDL is paid with CPF. CPF for each month's wages is due on the last day of that month. CPF Board takes enforcement action if it is still unpaid by the 14th of the following month.
Do I pay SDL for foreign employees?
Yes. SDL is payable for all your employees working in Singapore, including foreign employees. This is broader than CPF, which covers only Singapore Citizens and permanent residents.
What is the difference between SDL and CPF?
CPF is a savings scheme for Singapore Citizens and permanent residents, with rates up to 37%. SDL is a levy of 0.25% for all employees, collected by CPF Board for the Skills and Workforce Development Agency (SWDA) and paid into the Skills Development Fund.