As required by law under the Skills Development Levy (SDL) Act, all employers are required to pay a monthly SDL for each of their employees working in Singapore. The SDL is calculated at a rate of 0.25% of the remuneration* in any month of the employee, with a minimum contribution of $2 (for an employee earning less than $800 a month) and a maximum contribution of $11.25 (for an employee earning more than $4,500 a month). Employers should note that the SDL is a separate levy from other payments such as the Central Provident Fund (CPF) contribution or Foreign Worker Levy (FWL). The employer should also not deduct SDL from the employee's monthly remuneration.
An employer is defined as any person who pays or is liable to pay any remuneration to an employee. It includes:
a. Any person, company, association or body of persons employing an employee;
b. The owner of any vessel on which an employee is employed and/or;
c. Any manager, agent or person responsible for the payment of wages to an employee on behalf of an employer.
d. Representative Offices registered under IE Singapore