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The Skills Development Levy (SDL) is payable by all employers with an annual payroll of R500 000.00 or greater.

SDL is payable monthly and is calculated as 1% of the total leviable remuneration to employees.

Monthly returns are made on EMP201 along with PAYE and UIF.

Calculation of SDL Contribution

SDL is currently calculated as 1% of the SDL leviable remuneration. The SDL leviable remuneration is the remuneration used to calculate the PAYE deduction, less the exclusions listed below.


The following exclusions are to be deducted from PAYE remuneration to calculate the skills development levy.

Any amount paid or payable by way of or in respect of:

  • Pension
  • Superannuiation allowance
  • Retiring allowance
  • Annuity
  • Voluntary award i.r.o loss of office (e.g. retrenchment package)
  • Lump sum payment from pension, provident or retirement funds.
  • Amount paid or payable to labour brokers who are in possession of a valid certificate of exemption issued by SARS.
  • Remuneration paid or payable to a learner under a registered learnership (Skills Development Act, 1998).