SDL is small, but it is the one monthly payment a one-person company with a foreign director still has to make. Here is who pays, how much, and where.
Last checked: 9 October 2026The Skills Development Levy (SDL) is a monthly levy every employer in Singapore pays for each employee. It is 0.25% of monthly wages, at least S$2 and at most S$11.25 per employee.
The maximum is reached at monthly wages of S$4,500. Above that the levy stays at S$11.25.
| Employee | SDL | CPF |
|---|---|---|
| Singapore citizen or PR | Yes | Yes |
| Employment Pass, ONE Pass or EntrePass holder | Yes | No |
| S Pass or Work Permit holder | Yes, plus the Foreign Worker Levy | No |
| You, as director drawing a salary from your own company | Yes | Only if you are a citizen or PR |
SDL is paid by the employer. It is not deducted from salary, so it does not reduce the net pay on the payslip.
SDL is due by the 14th of the month after the wage month.
Yes. A director who draws a salary is an employee for this purpose, including on an Employment Pass.
No. The Foreign Worker Levy applies to S Pass and Work Permit holders only. SDL applies to all employees.
Late payment carries a penalty of 10% a year on the outstanding amount. Pay missing months as soon as you notice; the same GoBusiness service is used for past periods.
It is an employer cost and not a deduction, so most payslips do not show it.
This page gives you the first answers. The Founder Guide takes you through the whole first year in five steps, with checklists, templates to download and what I learned doing it myself.