By MoneyBees
Work out the Skills Development Levy for an employee (0.25% of monthly wages, S$2 to S$11.25), then the full monthly and yearly cost of a hire: salary, employer CPF by age, SDL and any foreign worker levy.
Employer CPF falls from 17% after 55.
From 1 Jan 2027, CPF rates rise for workers above 55 to 65.
SDL a month
$11.25
the S$11.25 maximum
Monthly cost of the hire
$5,861.25
salary + $850.00 CPF + $0.00 levy
Yearly cost
$76,185
17.2% on top of pay
SDL is 0.25% of the employee's total wages for the month, at least S$2 and at most S$11.25. It applies to every employee working in Singapore, foreigners included. Add up the SDL for all your staff and round the total down to the dollar.
Employer CPF at this age is 17% of wages up to S$8,000 a month.
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| A month | A year | |
|---|---|---|
| Salary, AWS and bonus | $5,000 | $65,000 |
| Employer CPF | $850.00 | $11,050 |
| SDL | $11.25 | $135.00 |
| Foreign worker levy | $0 | $0 |
| Total | $5,861.25 | $76,185 |
AWS and bonus are paid in one month. SDL is still capped at S$11.25 that month.
| Age | Employer | Employee |
|---|---|---|
| 55 and below | 17% | 20% |
| Above 55 to 60 | 16% | 18% |
| Above 60 to 65 | 12.5% | 12.5% |
| Above 65 to 70 | 9% | 7.5% |
| Above 70 | 7.5% | 5% |
Citizens and PRs from the third year, wages above S$750 a month.
| Sector and tier | Basic-skilled | Higher-skilled |
|---|---|---|
| Services: Tier 1: up to 10% of workforce | $450 | $300 |
| Services: Tier 2: above 10% to 25% | $600 | $400 |
| Services: Tier 3: above 25% to 35% | $800 | $600 |
| Manufacturing: Tier 1: up to 25% of workforce | $370 | $250 |
| Manufacturing: Tier 2: above 25% to 50% | $470 | $350 |
| Manufacturing: Tier 3: above 50% to 60% | $650 | $550 |
| Construction: Malaysia, North Asian sources, PRC | $700 | $300 |
| Construction: Non-traditional sources | $900 | $500 |
| Construction: Off-site construction | $370 | $250 |
MOM. Construction workers without the required certification pay S$900 whatever their source.
CPF Board's own example: staff earning S$609.50, S$2,000, S$4,500, S$4,502.03 and S$10,000 attract SDL of S$2, S$5, S$11.25, S$11.25 and S$11.25. The total is S$40.75, so the employer pays S$40.
A citizen aged 30 on S$5,000 costs S$5,000 + S$850 employer CPF + S$11.25 SDL = S$5,861.25 a month.
Figures checked 3 Oct 2026.
SDL is 0.25% of an employee's total wages for the month. The minimum is S$2 for an employee earning less than S$800, and the maximum is S$11.25 for one earning more than S$4,500.
Yes. SDL is payable for all employees working in Singapore, including foreign employees. CPF EZPay works it out for citizens and PRs; you enter the SDL for foreign employees yourself.
Add up the SDL for each employee, then round the total down to the nearest dollar. CPF Board's example totals S$40.75 for five staff, so the employer pays S$40.
CPF Board collects it with your CPF contributions on behalf of the Skills and Workforce Development Agency (SWDA). If you hire only foreign employees, you pay SWDA directly.
SDL is charged on total wages, which include bonus and AWS, but the S$11.25 maximum still applies in the month the bonus is paid.
17% for employees aged 55 and below, 16% above 55 to 60, 12.5% above 60 to 65, 9% above 65 to 70 and 7.5% above 70, on wages up to the S$8,000 Ordinary Wage ceiling.
S$650 a month for every S Pass holder, in all sectors and tiers, since 1 Sep 2025. The minimum qualifying salary is S$3,300, rising with age, and S$3,800 in financial services. For new applications from 1 Jan 2027 it rises to S$3,600, and S$4,000 in financial services.
No. MOM charges no foreign worker levy and sets no quota for Employment Pass holders. SDL still applies.
These calculators provide general estimates for educational purposes only and are not personalised financial advice. Results may rely on rates and rules that change over time, so verify against official sources (IRAS, CPF Board, HDB, MAS) or consult a licensed financial adviser before making decisions.
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