What is Skills Development Levy (SDL)?

​Skills Development Levy (SDL) is a compulsory tax fee that the employer has to pay for all employees that are working in Singapore.

  • employees employed on a permanent, part-time, casual, and temporary basis

  • foreign employees on work permits and employment pass holders

  • employees on leaves for the whole month are required to pay SDL

How do I calculate Skills Development Levy (SDL)?

Employers have to contribute to Skills Development Levy (SDL) for all employees up to the first $4,500 of each employee's total monthly wages at a levy rate of 0.25%.

  • SDL Payable = (Total Wages for the Calendar Month) x (0.25%)

  • Minimum payable amount of $2

  • Maximum payable amount of $11.25

  • Total SDL Payable = Adding up all SDL payable amount from all employees

  • Round down to the nearest dollar

  • Here is the link to the SDL calculator.

Here’s an example of an SDL computation:

Employee

Total Wages for the Calendar Month

SDL Payable

A

$609.50

$2.00
(Min. of $2.00 is payable because the total wages is less than $800)

B

$2,000.00

$5.00

C

$4,500.00

$11.25

D

$4,502.03

$11.25
(Max. of $11.25 is payable because the total wages is more than $4500)

E

$10,000

$11.25
(Max. of $11.25 is payable because the total wages is more than $4500)

Total SDL

$40.75

Total SDL Payable

$40
(rounded down to the nearest dollar)

SDL Exemptions

  • employees who did not pay CPF that month

  • employees who did not provide any services in Singapore for the month, this excluded employees on leaves for that whole month

  • a matriculated or registered students under this list.

  • Employers under Minister's order

  • For more detailed information, click on this link.

What are the Self-Help Groups (SHGs)?

The contribution is deducted from the employee’s wages together with their CPF contribution.

The SHGs Donation are as follow:

  • Chinese Development Assistance Council (CDAC) Fund

  • Eurasian Community Fund (ECF)

  • Mosque Building and Mendaki Fund (MBMF)

  • Singapore Indian Development Association (SINDA) Fund

Chinese Development Assistance Council (CDAC) Fund

Employee who is required to pay:

  • Singapore Citizens

  • Permanent Residents

  • Race: Chinese

The contribution rates for CDAC are as follows:

Monthly Total Wages*

Monthly Contribution

≤ $2,000

$0.50

> $2,000 to $3,500

$1.00

> $3,500 to $5,000

$1.50

> $5,000 to $7,500

$2.00

> $7,500

$3.00

* Total wages refer to all remuneration in money due or granted to an employee in respect of his employment, including overtime pay, allowances (e.g. food, shift, or transport allowances), commission, and bonus.

Eurasian Community Fund (ECF)

Employee who is required to pay:

  • Singapore Citizens

  • Permanent Residents

  • Race: Eurasian

The contribution rates for ECF are as follows:

Monthly Total Wages*

Monthly Contribution

≤ $1,000

$2.00

> $1,000 to $1,500

$4.00

> $1,500 to $2,500

$6.00

> $2,500 to $4,000

$9.00

> $4,000 to $7,000

$12.00

> $7,000 to $10,000

$16.00

> $10,000

$20.00

* Total wages refer to all remuneration in money due or granted to an employee in respect of his employment, including overtime pay, allowances (e.g. food, shift, or transport allowances), commission, and bonus.

Mosque Building and Mendaki Fund (MBMF)

Employee who is required to pay:

  • Singapore Citizens,

  • Permanent Residents

  • Foreign employees

  • Religion: Muslims

The contribution rates for MBMF are as follows:

Monthly Total Wages*

Monthly Contribution

≤ $1,000

$3.00

> $1,000 to $2,000

$4.50

> $2,000 to $3,000

$6.50

> $3,000 to $4,000

$15.00

> $4,000 to $6,000

$19.50

> $6,000 to $8,000

$22.00

> $8,000 to $10,000

$24.00

> $10,000

$26.00

* Total wages refer to all remuneration in money due or granted to an employee in respect of his employment, including overtime pay, allowances (e.g. food, shift, or transport allowances), commission, and bonus.

Singapore Indian Development Association (SINDA) Fund

Employee who is required to pay:

  • Singapore Citizens

  • Permanent Residents

  • Employment Pass holders and Personalised Employment pass holders

  • Race: Indian

The contribution rates for SINDA are as follows:

Monthly Total Wages*

Monthly Contribution

≤ $1,000

$1.00

> $1,000 to $1,500

$3.00

> $1,500 to $2,500

$5.00

> $2,500 to $4,500

$7.00

> $4,500 to $7,500

$9.00

> $7,500 to $10,000

$12.00

> $10,000 to $15,000

$18.00

> $15,000

$30.00

* Total wages refer to all remuneration in money due or granted to an employee in respect of his employment, including overtime pay, allowances (e.g. food, shift, or transport allowances), commission, and bonus.


Opting out of SHGs

Employee who wishes to opt-out of SHGs donation needs to:

  • Submit an Opt-out Form to the respective SHGs.

  • Requires the endorsement of the employer.

  • Deductions can stop once the form is submitted.

  • For MBMF, deductions can stop only after the Opt-out Certificate is issued

  • For more information, please contact the respective SHGs.

Opt-out Form for the respective SHGs:

What is Community Chest?

Community Chest is a social service agency and the fundraising and engagement arm of the National Council of Social Service (NCSS), the national co-ordinating body for social service agencies in Singapore.

  • A core group that raises funds for about 80 social service agencies in Singapore operating vital social service programs.

  • 100% of the donations go towards helping the disadvantaged.

  • All donations to Community Chest are entitled to tax deductions.

  • Up till 31 December 2021, donors are entitled to a 250% tax deduction for qualifying donations.

What is Social Help and Assistance Raised by Employees (SHARE)?

SHARE is a monthly giving program of Community Chest.

  • Donations from employees are voluntary

  • Donations are deducted from employee's wages through the company payroll

  • Donations are collected through CPF Board

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