SDL Computation

SDL Computation

• How do I calculate how much SDL to pay for my employees?

  SDL is payable on the first $4,500 of monthly remuneration at the rate of 0.25%, subject to a minimum of $2. The table below gives an example of how to calculate SDL payable:

  Employee	Monthly Remuneration	SDL Payable	Remarks
  A	$150.80	$2	Minimum of $2 is payable for those earning less than $800
  B	$609.50	$2	Minimum of $2 is payable for those earning less than $800
  C	$2,000.00	$5	0.25% of monthly remuneration
  D	$4,500.00	$11.25	0.25% of monthly remuneration
  E	$4,502.00	$11.25	SDL is on the first $4,500 only
  F	$10,000.00	$11.25	SDL is on the first $4,500 only
  	Total	$42.75
  	Total SDL Payable	$42	Rounding down is done at the total for the whole organisation and not on each employee

• How do employers calculate SDL for months with bonus pay-outs or allowances?

  For a month where the employee is paid bonus or allowance, the amount of bonus or allowance is considered as remuneration for that month.

  For example, if the employee’s salary for December is $3,000 and the bonus paid in December is $1,000, SDL should be calculated based on $4,000 ($3,000 +$1,000). SDL payable is $10 ($4,000 x 0.25%).

• How do I calculate SDL for employees who work in Singapore but whose remunerations are paid in foreign currencies?

  If remuneration is paid in a foreign currency, the employer should calculate the amount of SDL payable, based on the equivalent value in Singapore dollars.

  The remuneration can be converted to Singapore dollars using any of the published exchange rates used by a major local bank.

• How do I calculate SDL for employees who are on paid leave or no-pay leave?

  If the employer pays remuneration to the employee during the period of leave, the amount of SDL payable can be calculated based on that remuneration.

  If the employer does not pay and is not liable to pay remuneration to the employee during the period of leave, then no SDL is payable.