What is the meaning of SDL (Skills Development Levy)?

What is a skills development lavy in Singapore? Is it required for foreign employees also?

SDL or Skill Development Levy is a fee imposed on the employers, on top of FWL (Foreign Workers Levy) and CPF (Central Provident Fund) contributions. This levy is mandatory under the Skills Development Levy Act. WDA (Workforce Development Agency) manages and controls it.

SDL is applicable for all employees, including full-time, part-time, temporary, and casual. It is even applied to foreign workers.

All the collected SDL is channeled to the SDF (Skill Development Fund). It is used to:

• Provide training grants to Singapore employers if they send their employees to a Continuing Education and Training Center.
• Support programs that are used to upgrade the workforce in Singapore