What is SDL (Skills Development Levy)?
Definition
SDL is a compulsory levy of 1% of total employee remuneration that South African employers pay to fund skills development and training programmes.
Explained Simply
Employers with an annual payroll exceeding R500,000 must pay SDL. It is calculated at 1% of total remuneration (including bonuses, overtime, and fringe benefits) and paid monthly to SARS via the EMP201 return. Companies can claim back up to 80% of their SDL contribution through SETA-approved training programmes. Government organisations, religious bodies, and public benefit organisations may be exempt.
Related Terms
PAYE (Pay As You Earn)
PAYE is the system through which employers deduct income tax from employees' salaries and pay it directly to SARS on their behalf each month.
UIF (Unemployment Insurance Fund)
UIF is a South African social security fund that provides short-term financial relief to workers who become unemployed, ill, or go on maternity leave.
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