Skills Development Levy (SDL) Calculator South Africa 2026
Check whether your business is liable for SDL, and calculate your monthly levy — 1% of total payroll — instantly.
Who has to pay SDL?
Every employer must pay SDL at 1% of total remuneration paid to employees — unless they qualify for one of the exemptions below.
Source: SARS — Skills Development Levy page
Small employers (R500,000 threshold): If you have reasonable grounds to believe your total remuneration to all employees, over the following 12 months, will be R500,000 or less, you are exempt from SDL.
Public service employers: Any public service employer in the national or provincial sphere of government is exempt — though these employers must still budget an equivalent amount for staff training and education.
Qualifying public entities: Any national or provincial public entity is exempt if 80% or more of its expenditure is paid, directly or indirectly, from funds voted by Parliament — again with the same training-budget requirement.
Approved Public Benefit Organisations (PBOs): A PBO that is exempt from income tax under Section 10(1)(cN) of the Income Tax Act, and that carries on only specified public benefit activities (educational, welfare, humanitarian, health care, religion, belief, or philosophy), is exempt from SDL provided it holds a letter of exemption issued by the SARS Tax Exemption Unit (TEU).
Exempted municipalities: A municipality is exempt if it holds a certificate of exemption issued by the Minister of Higher Education and Training.
| Exemption | Condition |
|---|---|
| Small employer | Expected remuneration ≤ R500,000 over next 12 months |
| Public service employer | National or provincial government sphere |
| Public entity | ≥80% of expenditure Parliament-funded |
| Approved PBO | Income-tax exempt under Section 10(1)(cN), with a TEU exemption letter |
| Municipality | Holds Minister-issued exemption certificate |
Source: SARS — Skills Development Levy page; SARS — Guide for Employers in respect of Skills Development Levy
How SDL is calculated and paid
Source: SARS — Skills Development Levy page; SARS Budget 2026 FAQ
Example:
An employer with a total monthly payroll of R600,000 pays SDL of:
R600,000 × 1% = R6,000/month
How it's paid:
SDL is paid together with PAYE and UIF via the monthly EMP201 return, due within 7 days of month-end — by the 7th of the following month, or the preceding business day if the 7th falls on a weekend or public holiday.
Source: SARS — Skills Development Levy page; SARS — Pay As You Earn page
What SDL funds:
SDL revenue supports the National Skills Fund and Sector Education and Training Authorities (SETAs), which fund workforce skills development and training programmes across South Africa.
Source: SARS — Skills Development Levy page
Frequently Asked Questions
Related guides and tools
Back to: ← SDL — Complete Guide
Sources:
- SARS — Skills Development Levy — sars.gov.za/types-of-tax/skills-development-levy/ (1% rate; all 5 exemption categories; payment mechanics)
- SARS — Guide for Employers in respect of Skills Development Levy (SDL-GEN-01-G01) — sars.gov.za (R500,000 forward-looking exemption basis; remuneration definition)
- SARS — Budget 2026 FAQ — sars.gov.za (rate and threshold confirmation)
- SARS — Legal Interpretation Note 10 — Skills Development Levy Exemption: Public Benefit Organisations — sars.gov.za
- SARS — Pay As You Earn — sars.gov.za/types-of-tax/pay-as-you-earn/ (EMP201; payment deadline)
- Skills Development Levies Act 9 of 1999
Last reviewed: June 2026. Next review: after Budget Speech February 2027 — verify the rate and exemption threshold, though both have been stable for an extended period.