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    Statutory

    SDL

    The Skills Development Levy is a 1% employer contribution funding SETAs, payable when annual payroll exceeds R500,000.

    Full definition

    SDL (Skills Development Levy) is a 1% levy on the employer's total payroll paid monthly to SARS on EMP201. It is only required when the employer's total annual payroll exceeds R500,000. The levy funds SETAs (Sector Education and Training Authorities) and eligible employers can claim Mandatory and Discretionary grants back.

    See also

    EMP201
    The monthly employer return to SARS declaring PAYE, UIF, SDL and ETI due for the payroll period.
    SETA
    Sector Education and Training Authorities — 21 industry-specific bodies funded by SDL contributions.

    Automate SDL in your payroll

    Payroll Africa handles SDL calculations automatically for South African employers — SARS-aligned for 2026/27. From R90/month.

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    Let payroll handle SDL for you

    Payroll Africa calculates it automatically every month for South African employers — SARS-aligned, with payslips, EMP201 and IRP5 included.

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