It is mandatory for employers in Singapore to pay the levy for every employee on their payroll. Employers are able to apply for grants under the National Continuing Education Training system, which is a scheme to encourage businesses to upgrade the skills of their employees. All grant applications are reviewed and approved by the SSG.
SDL payments are due monthly and are separate from other contributions to statutory boards in Singapore, such as the Central Provident Fund. Employers must make the payments, regardless of whether they plan on applying for SDF grants or not. There are a few circumstances where businesses can skip the monthly SDL payment for their employees.
These are:. Singaporean businesses required to pay SDL contributions must take into account the total monthly wage of each eligible employee. This includes the base salary, commission, bonuses, overtime pay, and any additional allowances. Cash payments to employees are included, too. Hence, the SDL contribution may vary month to month as it depends on how much the employee made. The SDL calculation formula is as follows: The contribution percentage is 0.
Businesses have the option to pay the SDL as an upfront annual payment at the beginning of the year, or monthly along with their CPF contributions. If your firm has 10 or fewer employees, you can use e-Submit AXS. Firms employing only foreign workers are allowed to make payments via the E-payment service at the SDL website. Direct payments to SSG are also allowed, either through a crossed cheque or bank transfer.
The cheque must be payable to Skills Development Fund. Before calculating the SDL payment or writing a cheque to the government, make sure you keep these things in mind:. As we mentioned earlier, the purpose of the SDL is to help businesses access a pool of funds to upskill their workforce and encourage individual growth.
The Skills Connect website is the best place to start for more information about how to get access to the plethora of training grants and schemes. The gross emoluments are a sum of amount from salaries, wages, payments in lieu of leave, fees, commissions, bonuses, gratuity, any subsistence travelling, entertainment or other allowance received by employee in respect of employment or service rendered.
Where in any case an employer pays emoluments to any employee at intervals of less than a month or at intervals of greater than a month, such payments shall apply as if such employee was entitled to monthly payments and the monthly chargeable emoluments of such employee in respect of any month shall be deemed to be the chargeable emoluments that would have accrued to the employee had the emoluments been payable monthly. The employee includes permanent employees, part time employees, secondary employees, casual laborers etc.
Toggle Navigation. Who is liable for SDL? Any employer who employs ten or more employees shall pay SDL from gross emoluments. To prepare a monthly return and submit to the TRA office on or before the 7 th day of the month following the month of payroll.
To prepare and remit half year certificate which tally with the monthly returns submitted during the period. However, they will have to pay a foreign worker levy for Work Permit and S Pass holders. The SHG funds are intended to uplift less-privileged, low-income families. While payment to such SHG funds are not compulsory, all employees will make contributions in accordance with their monthly income unless they choose to opt-out.
There are four SHGs in Singapore:. The SDL is essential in allowing employees to undertake quality training to constantly upgrade their skills. In order for our industries and employees to benefit from such training and remain competitive, it is important that you, as an employer, promptly pay the accurate amount of SDL every month. You may also engage a corporate secretarial firm to assist you with any administrative matters when paying the SDL.
How Much is It? Last updated on July 22,
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