Skills Development Levy (SDL)

What is SDL?

SDL is a levy imposed to promote learning and development in South Africa and is driven by an employer’s salary bill.

The funds are to be used to develop and improve skills of employees.

Who must pay SDL?

SDL is payable by employers, who have been registered.

Where an employer expects that his total salaries will  over the following 12 months, that employer becomes liable to pay SDL.

What steps must the employer take?

If an employer becomes liable, then the employer is required to register for SDL.

How much do you need to pay?

1% of the total amount paid in salaries to employees (including overtime payments, leave pay, bonuses, commissions and lump sum payments).

When must SDL be paid?

SDL is paid on a monthly basis, not later than 7 days after the end of the month in respect of which the levy is payable.

How must SDL be paid?

SDL is paid under cover of a completed EMP 201 declaration. (The same form that is submitted to pay PAYE and UIF).  The following payment options are available:

    • Payment via eFiling
    • Internet payment
    • Payments at a bank
    • Payments at a
  • SARS branch office

What happens to the SDL Levy?

The levies are distributed via SETA.

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