SDL on a payslip is the Skills Development Levy: 1% of payroll, paid by the employer and not deducted from your salary. What the line means, why it appears, and how it differs from UIF and PAYE.
**SDL on a payslip is the Skills Development Levy.** It is a contribution of 1% of your pay that your employer pays to SARS to fund skills development. It is an employer cost: it should not reduce your take-home pay. Many payslips show it so that the full cost of employment is visible, which is why employees often notice it and ask what it is. > **Key facts (as at 22 September 2026)** > - SDL rate: **1%** of the remuneration an employer pays, including overtime, leave pay, bonuses and commission (SARS). > - Paid by: **the employer**, with no deduction from the employee (SARS). > - Applies when: the employer's total remuneration is expected to exceed **R500,000** over the next 12 months (SARS). > - Declared and paid: monthly on the employer's **EMP201**, within seven days after month-end (SARS). What this guide covers: - Why SDL appears on your payslip - A payslip example with PAYE, UIF and SDL side by side - What "total tax, SDL and UIF" usually means - Where the levy goes - Answers to common payslip questions ## Why SDL Appears on Your Payslip Payroll systems print the statutory amounts linked to each employee. PAYE and your share of UIF are **deductions**, taken from your pay. SDL is different. It is calculated on your pay, but your employer carries it in full. It usually appears in a separate section headed "company contributions" or "employer contributions", or as an information line, so it does not reduce your net pay. The official rules are on the [SARS Skills Development Levy page](https://www.sars.gov.za/types-of-tax/skills-development-levy/). ## A Payslip Example This is an illustrative employee earning **R12,000** a month, below the UIF earnings ceiling. The PAYE figure depends on the SARS tax tables and on the individual, so it is shown only as a line. | Line | Who pays | Amount | Reduces take-home pay? | |---|---|---|---| | PAYE (income tax) | Employee | per SARS tax tables | Yes | | UIF, employee share (1%) | Employee | R120 | Yes | | UIF, employer share (1%) | Employer | R120 | No | | SDL (1%) | Employer | R120 | No | The employee's R120 for UIF comes out of the salary. The employer's matching R120 for UIF and the R120 for SDL are paid by the employer on top of the salary. ## What "Total Tax, SDL and UIF" Usually Means The label comes from the **IRP5** tax certificate. There, code **4149**, "Total Tax, SDL and UIF", adds together PAYE (code 4102), both shares of UIF (code 4141) and SDL (code 4142) for the year. Some payslips and payroll reports use the same label for the monthly total. It is not an extra deduction. It is the sum of the statutory amounts paid to SARS in respect of your employment, including the employer's own contributions. If a figure is unclear, the payroll administrator can show how it was made up. ## Where the Levy Goes SARS collects SDL, which is then distributed: 80% to the **Sector Education and Training Authorities (SETAs)** and 20% to the National Skills Fund, under the Skills Development Levies Act. It funds learnerships, skills programmes and training. Employers that submit a workplace skills plan to their SETA can recover part of the levy through grants. That is the employer's side of SDL, explained in the [PAYE, UIF and SDL guide](https://atlan.co.za/news/paye-uif-sdl-explained-small-business). ## Three Checks for Your Own Payslip First, confirm that SDL sits under employer or company contributions, not under deductions. Second, check that the UIF deduction is 1% of your pay, up to the ceiling. Third, compare the tax figures on your annual IRP5 certificate with your payslips, because the IRP5 is what SARS sees. A mismatch on any of these is a question for the payroll administrator. ## Frequently Asked Questions **What is SDL on my payslip?** It is the Skills Development Levy, 1% of your pay, paid by your employer to fund skills development. It is shown for information. **Is SDL deducted from my salary?** No. SDL is paid by the employer only. If SDL appears among the deductions and reduces your net pay, ask your payroll administrator to check the payslip. **What is the employer SDL contribution?** It is 1% of the remuneration the employer pays. Employers whose total annual payroll is not expected to exceed R500,000 are exempt, and so are some public bodies and certain approved public benefit organisations. **What does "total tax, SDL and UIF" mean?** It is IRP5 code 4149: the total of PAYE, both shares of UIF and SDL paid to SARS in respect of your employment. It is a total, not an extra deduction. **What is the difference between SDL and UIF?** UIF insures workers against lost income and is shared: 1% from the employee and 1% from the employer. SDL funds training and is paid only by the employer. ## How Atlan Supports Payroll Atlan Management Services administers payroll for businesses, including payslips that show deductions and employer contributions clearly, monthly EMP201 submissions and EMP501 reconciliations. This guide is general information and not tax advi...