1. What is SDL on Commission?

SDL (Skills Development Levy) is a South African payroll tax that funds education and training initiatives. When employees earn commission, SDL may be calculated on these earnings depending on the employment circumstances.

2. How is SDL Calculated on Commission?

The calculation is straightforward:

Where:

• \( Commission \) — The commission amount earned by the employee
• \( SDL\ Rate \) — The current SDL rate (typically 1% in South Africa)

Important: SDL is calculated on the total remuneration paid to employees, which includes basic salary, bonuses, commission, and other regular payments.

3. When is SDL Applicable?

Details: Employers must pay SDL if their total annual payroll exceeds ZAR 500,000. The levy applies to all employees, including those paid on commission-only basis.

4. Using the Calculator

Instructions: Enter the commission amount in ZAR and the applicable SDL rate (usually 0.01 for 1%). The calculator will compute the SDL amount payable.

5. Frequently Asked Questions (FAQ)

Q1: Is SDL always calculated on commission?
A: Yes, if the employer's total payroll exceeds the threshold, SDL must be calculated on all remuneration including commission.

Q2: What is the current SDL rate in South Africa?
A: The standard rate is 1% (0.01) of the total remuneration paid to employees.

Q3: Who pays the SDL - employer or employee?
A: The employer is responsible for paying the SDL. It is not deducted from the employee's salary.

Q4: Are there any exemptions?
A: Employers with annual payroll below ZAR 500,000 are exempt. Certain public service employers may also be exempt.

Q5: When is SDL paid?
A: SDL must be paid monthly by the 7th of the following month, along with PAYE and UIF payments.