What is the Skills Development Levy rate in South Africa?
# What is the Skills Development Levy Rate in South Africa?
The **Skills Development Levy (SDL) rate is 1%** of the total amount paid in salaries to employees. This levy applies to all employers registered for Pay-As-You-Earn (PAYE) who have an annual payroll exceeding **R500,000**.
## Who Must Pay SDL?
Employers must pay SDL if they:
- Are registered with SARS for PAYE
- Have an annual payroll exceeding **R500,000** (excluding directors' fees for non-salary directors)
- Employ one or more employees
**Exemption threshold**: Employers with annual remuneration below R500,000 are exempt from SDL payments.
## What Constitutes Total Remuneration?
The 1% SDL applies to:
- Basic salaries and wages
- Overtime payments
- Leave pay and bonuses
- Fees and commissions
- Lump sum payments
- Any other remuneration paid to employees
## How SDL is Calculated
**Example**: If your monthly payroll is R100,000:
- SDL = R100,000 × 1% = **R1,000**
The levy must be paid monthly along with your PAYE submission by the **7th of the following month**.
## SDL Registration Requirements
Employers expecting to exceed the R500,000 annual threshold must:
- Register with SARS for SDL
- Submit monthly EMP201 returns
- Pay SDL by the 7th of each month
## How to Pay SDL
SDL payments are made through:
- **eFiling** on the SARS website
- Monthly EMP201 declaration
- Electronic funds transfer to SARS
## SDL Benefits for Employers
Employers can claim back up to **20% of their SDL contributions** through approved skills development programmes and workplace skills plans submitted to relevant Sector Education and Training Authorities (SETAs).
**Pro tip**: WeekdayApp's compliance tracking ensures you never miss SDL deadlines, automatically calculating your monthly obligations and providing SARS deadline reminders for accounting practices from R199/user/month.
## Key SDL Deadlines
- **Monthly payment**: 7th of each month
- **Annual reconciliation**: Through EMP501 by 31 May
- **SETA submissions**: Various deadlines throughout the year