SDL Guide

Who Pays SDL in South Africa?

Only the employer pays SDL — employees do not contribute. The Skills Development Levy is 1% of all leviable remuneration paid to employees, paid monthly by the employer to SARS alongside PAYE and UIF.

Who must pay SDL?

✅ Employers with annual payroll > R500,000
✅ Private companies, close corporations, trusts
✅ Public entities that employ staff

Who is exempt?

❌ Employers with annual payroll ≤ R500,000
❌ Public Service (national & provincial)
❌ Religious or welfare organisations (in most cases)

How SDL is calculated

SDL is 1% of leviable remuneration. Leviable remuneration includes:

Basic salary
Overtime pay
Commissions
Bonuses
Travel allowances (to the degree they're taxable)

There is no ceiling on SDL — unlike UIF. A R100,000/month salary generates R1,000 in SDL for that month.

Where does SDL go?

SDL is paid to SARS and then transferred to the SETA (Sector Education and Training Authority) relevant to your industry. 80% goes to your SETA and 20% to the National Skills Fund. Employers can claim back a portion of what they paid via mandatory and discretionary grants — but only if registered and compliant with their SETA.

When to register and pay

Register for SDL via SARS eFiling when your expected payroll for the coming 12 months will exceed R500,000. SDL is paid monthly with PAYE and UIF via the EMP201 return, due by the 7th of the following month.

Related Resources

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