The Skills Development Levy (SDL) is a levy paid by employers, based on total payroll, that funds skills development through Sector Education and Training Authorities (SETAs) and the National Skills Fund.
What it means
Unlike PAYE and UIF, SDL is not deducted from an employee's pay - it is a cost the employer carries directly, calculated as a percentage of the total remuneration paid to all employees in a period.
Where it fits in
SDL is declared and paid together with PAYE and UIF on the same EMP201, even though it is an employer-only liability rather than an employee deduction. Employers with an annual payroll below a threshold set by SARS, or that fall into specific exempt categories, do not need to register for or pay SDL.
Key rules
- Calculated on total remuneration paid, not per employee individually.
- Employer liability only - never appears as a deduction on an employee payslip.
- Small employers below the SARS-defined payroll threshold are exempt from registering.
- Declared and paid monthly via the EMP201, in the same submission as PAYE and UIF.
