SDL is a flat 1% of leviable remuneration — paid entirely by the employer, with no ceiling. Here's how it adds up across a small team.
SDL = 1% × R25,000 = R250.00/month
Unlike UIF, there's no ceiling on SDL — it scales with the full salary.
SDL = 1% × R100,000 = R1,000.00/month
| Employee | Salary | SDL (1%) |
|---|---|---|
| 4 × Staff | R15,000 | R150.00 each |
| 3 × Supervisors | R28,000 | R280.00 each |
| 1 × Manager | R45,000 | R450.00 |
Total monthly SDL: (4 × R150) + (3 × R280) + R450 = R600 + R840 + R450 = R1,890.00/month
SDL only applies once your total expected annual payroll exceeds R500,000. Below that, you're exempt — see our Who Pays SDL guide. Try your own numbers with our SDL Calculator.
No — SDL is paid entirely by the employer; it doesn't reduce employee take-home pay.
Yes — SDL is based on total leviable remuneration across all employees, part-time or full-time, once the business exceeds the R500,000 payroll threshold.
Yes — employers can claim back a portion of SDL paid via mandatory and discretionary SETA grants, if registered and compliant.
TSS Payroll applies 1% SDL to every applicable employee and includes it in your EMP201 — no manual spreadsheet needed.
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