TSS Payroll
SDL Guide

How to Register for SDL in South Africa

Like UIF, SDL registration happens automatically when you register as an employer on SARS eFiling. The single EMP101e employer registration form covers PAYE, UIF and SDL together.

Who needs to register for SDL?

  • Employers with an expected annual payroll exceeding R500,000
  • Both private companies and public entities (excluding national and provincial government)
  • Foreign employers employing SA residents in South Africa

What if I'm below R500,000?

Employers with a total annual payroll under R500,000 are exempt from SDL. You still register for PAYE and UIF, but you don't pay the SDL levy. You can still voluntarily register with your SETA for skills development grants.

Registration process

  1. 1

    Register on SARS eFiling

    Log in to sarsefiling.co.za → Register New → Employer (PAYE/SDL/UIF). SDL is included automatically.

  2. 2

    Identify your SETA

    Each industry sector has a designated SETA. Look up your SETA at dhet.gov.za/SETAs based on your SIC (Standard Industrial Classification) code.

  3. 3

    Register with your SETA

    Separately register with your industry SETA to be eligible for mandatory and discretionary grants. This is optional but highly recommended — you can claim back up to 50–70% of SDL paid.

  4. 4

    Pay via EMP201 monthly

    SDL (1% of leviable remuneration) is paid to SARS monthly with PAYE and UIF. SARS then distributes 80% to your SETA and 20% to the National Skills Fund.

Automate SDL

TSS Payroll calculates SDL automatically

Never worry about SDL — TSS Payroll applies 1% to all leviable remuneration and includes it in your monthly EMP201 report.

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