The SDL is a compulsory levy imposed on employers to encourage learning and development in South Africa, calculated based on the employer's salary bill. The funds are used to develop and improve the skills of employees through education and training initiatives as outlined in the Skills Development Act No. 97 of 1998.

All employers in South Africa who are registered with SARS and expect their total annual payroll (remuneration) to exceed R500,000 over the next 12 months are liable to pay SDL. This includes private companies, but exemptions apply.

Employers become liable for SDL if their total remuneration paid to employees is expected to exceed R500,000 in the next 12 months. If below this threshold, no registration or payment is required.

SDL is calculated as 1% of the leviable amount, which is the total remuneration paid to employees (including salaries, wages, overtime, bonuses, commissions, fees, leave pay, and lump sums) minus exclusions such as pensions, retiring allowances, learner remuneration under certain learnership agreements, and specific deductions like pension or provident fund contributions.

The rate is 1% of the leviable remuneration.

SDL must be declared and paid monthly via the EMP201 form to SARS within seven days after the end of the month (or the last business day before if it falls on a weekend or public holiday). Payments can be made through eFiling.

Exemptions include: public service employers in national or provincial government (who must budget for training instead); national or provincial public entities with 80%+ funding from Parliament; public benefit organizations (PBOs) exempt from income tax under Section 10(1)(cN) of the Income Tax Act with a SARS exemption letter; municipalities with a certificate from the Minister of Higher Education and Training; and employers with total remuneration below R500,000 over 12 months.

Employers must register with SARS within 21 days of becoming an employer or liable for SDL (e.g., when payroll exceeds R500,000 annually). Registration is done via the SARS eFiling.

Late or non-payment incurs interest at a prescribed rate on the outstanding amount, plus administrative penalties for non-submission of returns. Late payments have an automatic 10% penalty.

Employers can recover portions of SDL through Sector Education and Training Authorities (SETAs) by submitting a Workplace Skills Plan (WSP) and Annual Training Report (ATR), qualifying for mandatory grants (up to 20% of levies paid) and discretionary grants for approved training programs. Refunds from SARS are available for overpayments, and the funds overall support national skills development initiatives.

Please add the company's SDL number in the company profile. All new payslips created will get SDL added and all payslips edited and saved will also get SDL added.