The Skills Development Fund (SDF) was established
in October 1979 with the institution of the Skills Development Levy
(SDL) Act with the primary objective of encouraging employers to invest
in skills upgrading of the workforce.
The SDF does this by offering assistance as an incentive to companies
to mount training programmes for employees.
Incentives are offered on the basis of a cost-sharing
principle and the training must be relevant to the economic development
of Singapore. The amount of incentives that a company can obtain is not
tied to the levy contribution.
Skills Development Levy (SDL)
Under the Skills Development Levy (SDL) Act (Cap. 306),
it is a statutory requirement for employers to make SDL contributions for employees who fall
within the salary ceiling for levy contributions.
With effect from 1 October 2008, SDL contribution is payable by employers for all employees up to the first $4,500 of gross monthly remuneration** at the rate of 0.25% or $2, whichever is higher. The SDL is also payable for employees such as casual, part-time, temporary and foreign workers rendering services wholly or partly in Singapore.
Payments for the SDL should be made by the 14th day of the following month to the Central Provident Fund (CPF) Board, which is our authorised collection agency, together with other payments. A penalty of 10% per annum will be imposed on the outstanding amount for late payment. In addition, employers who give false and/or misleading information relating to the payment of the levy, or who contravene the provisions of the Act or Regulations shall be liable, if convicted, to a fine or imprisonment or both.
The SDL collections are credited to the Skills Development Fund (SDF). Under the administration of the Singapore Workforce Development Agency (WDA), the Fund provides various incentive schemes to companies to upgrade the skills of their employees.
*"Remuneration" means any wage, salary, commission, bonus, leave
pay, overtime pay, allowances (including housing or other like allowances)
and other emoluments paid in cash.
Example of SDL computation:
|
WORKER
|
Gross Monthly Remuneration
|
SDL Payable
|
REMARKS
|
|
A
|
$150.80
|
$2.00
|
Minimum of $2 is payable
|
|
B
|
$609.50
|
$2.00
|
Minimum of $2 is payable
|
|
C
|
$2,000.00
|
$5.00
|
0.25% levy
|
|
D
|
$4,500.00
|
$11.25
|
0.25% levy
|
|
E
|
$4,502.00
|
$11.25
|
First $4,500 levied at 0.25%
|
|
F
|
$10,000.00
|
$11.25
|
First $4,500 levied at 0.25%
|
|
|
TOTAL SDL
|
$42.75
|
$42.00 is payable
|
| Total SDL Payable is $42.00 . Cents should be ignored only when you arrive at the TOTAL SDL Payable. | |||