Date Published: 29 Sep 2008
Re-structure, Revise and Re-strategise to build 1st Class CET System
1. With effect from 1 October 2008, employers will contribute the Skills Development Levy (SDL) on all workers they employ, up to the first $4,500 of gross monthly remuneration. The levy rate will also be lowered from 1% to 0.25%, subject to a minimum contribution of $2 per employee.
2. The change was first announced on 15 February 2008 during the delivery of the Budget Statement 2008. The SDL underlines employers’ key role in contributing to workers’ training and institutionalise employer’s dedication to the Continuing Education and Training (CET). The expansion of the levy base is to better reflect the outreach of CET, which will increasingly cover professionals, executives and managers. At the same time, the wider base will allow the existing levy rate to be lowered to ensure the total SDL collection will remain approximately the same as under the previous formula.
3. SDL is payable through the Central Provident Fund Board, the appointed collection agent of WDA. Failure to pay constitutes a statutory offence. Companies requiring assistance to calculate the levy payable can contact WDA’s hotline at 6883 5885 or visit SDF Website at www.sdf.gov.sg.
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