In Singapore, SDL (Skills Development Levy) and MAF (Manpower Additions Levy) are both levies imposed on employers but serve different purposes within the context of employment and workforce management.
- Skills Development Levy (SDL):
- SDL is a contribution that employers are required to make to support the skills development of their employees.
- The levy amount is a percentage (currently 0.25%) of the employee’s monthly remuneration and is paid to SkillsFuture Singapore (SSG).
- The funds collected through SDL are directed towards the Skills Development Fund, which is used to finance various workforce development programs, including training and upgrading initiatives for employees.
- Manpower Additions Levy (MAF):
- MAF is a levy imposed on employers who hire additional foreign workers above their allowed quota in certain sectors.
- It is an additional levy on top of the regular Work Permit or S Pass levy for foreign workers.
- The MAF aims to regulate the inflow of foreign manpower by making it more costly for companies to employ a higher number of foreign workers than permitted in specific sectors. This levy encourages employers to consider local talent first before hiring additional foreign workers.
In summary, SDL is focused on contributing to the skills development of the local workforce by funding training and education initiatives, while MAF is specifically targeted at regulating the hiring of additional foreign workers by imposing an additional levy to manage the workforce composition and control the number of foreign employees in certain sectors.