An SDL exemption means an employer does not have to pay the Skills Development Levy. The main exemption is for small employers whose payroll is below a set annual amount.
What it means
SDL is 1% of remuneration, paid by the employer to fund skills development. An employer is exempt where its total remuneration to all employees over the coming twelve months is not expected to exceed R500 000. Certain employers, such as some public bodies, are also exempt regardless of size.
Where it fits in
Where the exemption applies, payroll simply does not raise SDL, and the employer is not required to register for it. If the payroll later grows past the threshold, the employer must register and start paying. SDL, where due, is declared and paid on the EMP201.
Key rules
- Frees an employer from SDL where annual payroll is under R500 000.
- SDL is 1% of remuneration when it does apply.
- Some employers are exempt by type, not only by size.
- Crossing the threshold triggers a duty to register and pay.
