Skills Development Fund (SDF)
SDF provides financial assistance to employers to encourage them to
train and upgrade the skills of their workers. This is to equip
workers with the necessary capabilities to sustain Singapore's
competitiveness and economic growth.
Skills Development Levy (SDL)
Under the Skills Development Levy (SDL) Act (Cap. 306), it is a
statutory requirement for employers to make SDL contributions on
employees who fall within the salary ceiling for levy
contributions. Until 1 September 2005, the salary ceiling for SDL
contribution is $1,800. With effect from 1 September 2005, the
salary ceiling for SDL contributions will be raised from $1,800 to
$2,000. The levy rate remains at 1% and a minimum of $2 is payable
where remuneration is less than $200.
The SDL is payable for all employees whose gross remuneration** is
less than or equal to the salary ceiling. The SDL is also payable
for employees such as casual, part-time, temporary and foreign
workers rendering services wholly or partly in Singapore.
*"Remuneration" means any wage, salary, commission, bonus, leave
pay, overtime pay, allowances (including housing or other like
allowances) and other emoluments paid in cash.