The Skills Development Levy (SDL) is a tax on employer payrolls, designed to fund workplace skills training in South Africa. It is governed by the Skills Development Levies Act, 1999 and administered by SARS.
SDL contributions are paid into the National Skills Fund and to Sector Education and Training Authorities (SETAs), where employers can claim back grants for training expenditure.
All employers with an annual payroll exceeding R500,000 must pay SDL. This is assessed on the total remuneration paid to all employees in the 12-month period.
If your annual payroll is below R500,000, you are exempt from SDL. Use the SDL Calculator to check your liability.
SDL is an employer-only cost — it is not deducted from the employee's salary.
Employers registered with a SETA (Sector Education and Training Authority) can claim back a portion of their SDL contributions as grants:
| Grant Type | Amount | Requirements |
|---|---|---|
| Mandatory Grant | 20% of SDL paid | Submit Workplace Skills Plan (WSP) and Annual Training Report (ATR) |
| Discretionary Grant | Varies by SETA | Apply to your SETA for specific training projects |
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