Skills Development Levy (SDL) in South Africa
The Skills Development Levy (SDL) is a compulsory levy imposed on employers in South Africa under the Skills Development Levies Act 9 of 1999. The levy is set at 1% of the total payroll and is used to fund skills development programmes through the Sector Education and Training Authorities (SETAs). SDL applies to all employers whose annual payroll exceeds the R500,000 threshold.
SDL is calculated on the total remuneration paid to employees, which includes basic salaries, overtime payments, bonuses, commissions, and other allowances. The levy is collected by SARS on a monthly basis as part of the EMP201 return, alongside PAYE and UIF contributions. Employers must ensure timely payment by the 7th of the month following the payroll period.
This free SDL calculator helps South African employers quickly determine their monthly and annual SDL obligations based on their workforce size and average salaries. It also checks whether your business exceeds the annual payroll threshold of R500,000, below which SDL registration is not required.
Frequently Asked Questions
What is SDL in South Africa?
SDL (Skills Development Levy) is a 1% payroll levy paid by employers to fund skills development through SETAs (Sector Education and Training Authorities). It was introduced under the Skills Development Levies Act to promote learning and development in the South African workplace. Of the 1% collected, 80% goes to the relevant SETA and 20% goes to the National Skills Fund.
Who must pay SDL?
All employers with an annual payroll exceeding R500,000 must register for and pay SDL. This includes companies, close corporations, partnerships, and sole proprietors who meet the threshold. Certain employers such as national and provincial government departments, public benefit organisations, and religious or charitable organisations may be exempt from SDL.
How is SDL calculated?
SDL is calculated at 1% of the total monthly payroll, including salaries, overtime, bonuses, commissions, and other remuneration paid to employees. The calculation is straightforward: multiply your total monthly payroll by 0.01 (1%). For example, a monthly payroll of R100,000 would result in an SDL payment of R1,000.
When is SDL paid?
SDL is paid monthly to SARS together with PAYE and UIF on the EMP201 return, by the 7th of the following month. For example, SDL for January must be paid by 7 February. Late payments attract penalties and interest from SARS, so timely submission is essential.
Need payslips showing SDL contributions? Try our Free Payslip Generator
Generate Payslips Free →