SDL (Skills Development Levy) is a 1% levy on an employer’s total monthly payroll, paid only by the employer (not deducted from employees). Funds are remitted to SARS alongside PAYE and UIF on the EMP201, then routed to the SETAs (Sector Education and Training Authorities) and the National Skills Fund.
Employers with an annual payroll under R500,000 are exempt — small businesses with only a handful of employees rarely need to register. Once over the threshold, registration is mandatory within 21 days.
Employers can claim back a portion of SDL via mandatory and discretionary grants from their SETA, provided they submit a Workplace Skills Plan and Annual Training Report.