What is SDL (Skills Development Levy)?
Tax & Compliance
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 on maternity leave. Employee and employer each contribute 1% of remuneration, capped at R17,712 per month.