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Many Singapore employees say their pay has not kept up with inflation, while payroll teams face burnout from mounting compliance demands.
Half of Singapore’s workforce seems to be experiencing financial stress, according to Deel’s 2025 Singapore Payday Expectations Report. The study highlights that while payroll teams manage unprecedented compliance-driven workloads, most employees report their pay has not kept pace with inflation.
These pressures increase the risk of payroll errors and employee disengagement, pointing to the urgent need for businesses to modernise payroll systems.
The study was conducted in July 2025 via a quantitative online survey using Milieu Insight’s panel. It collected responses from 1,000 full-time employees and 250 payroll decision-makers across SMEs, mid-market and large enterprises. The report combines insights from both employees (B2C Payday) and employers (B2B Payroll).
Key findings include:
Financial strain on employees
Financial hardship is widespread among Singapore workers. Half of employees surveyed (50%) say they are just getting by or struggling financially, higher than Hong Kong where 37% report similar difficulties. Only 13% say their wages have kept pace with inflation, with Millennials most affected at just 8%.
Nearly half of employees (42%) report they could sustain their current lifestyle for less than three months without income, and 13% said even one month without pay would be catastrophic. To cope, many are cutting back on discretionary spending (55%) or taking on part-time or freelance work (41%). Others rely on credit cards (47%), buy-now-pay-later options (33%), and earned wage access [EWA] (20%).
Karen Ng, Regional Head of Expansion, Enterprise, North and South Asia, Deel, commented: "Singaporean workers are asking for clarity, flexibility and transparency in their pay – a reasonable and increasingly urgent demand. But the reality is that payroll professionals are under tremendous compliance and operational stress.
"If companies neglect the root causes driving this burnout, valuable expertise and trust could be lost from a mission-critical function."
Flexible pay models gaining traction
Financial pressures are changing how employees view pay. Traditional pay cycles are losing relevance, especially among younger workers. Nearly one in five employees (18%) would prefer to be paid more frequently, with weekly or twice-monthly cycles most popular.
EWA, which allows employees to access part of their wages before payday, is gaining recognition. While 47% of respondents have never heard of EWA, nearly three in four (74%) would consider using it if offered by their employer. Gen Z workers show the highest interest at 33%, while 29% of working parents and 32% of those expecting children expressed openness to EWA. However, despite demand, only around 25% of payroll teams currently invest in EWA solutions.
Demand for flexibility and alternative compensation
Workers value flexibility in pay structures. More than half (57%) would choose a higher salary with fewer benefits, 54% prefer the ability to mix salary, leave, and benefits, and 24% would accept lower pay in exchange for remote or hybrid work arrangements.
Alternative compensation options are also gaining appeal. About 69% of employees are open to receiving pay in other forms, including company shares or equity (46%), employer-backed rewards or loyalty points (34%), and cryptocurrency (28%).
Transparency remains a priority:
- While 71% support industry-wide salary disclosure, many employees find salary negotiations challenging.
- About 72% describe hiring-stage salary talks as difficult, and only 41% feel comfortable discussing pay with colleagues.
- Just 29% say they can confidently decode their payslips, and three-quarters believe employers could do more to clarify payroll details.
- Around 27% are unsure who to contact with payroll questions.
Payroll teams under pressure
Payroll professionals are facing heavier workloads, driven by recent CPF monthly salary ceiling adjustments and ongoing regulatory changes. Over three-quarters (77%) report that these changes have added processes, particularly where payroll, HR, and finance systems are poorly integrated (56%).
Most SMEs and mid-sized firms run payroll teams of fewer than 10 staff, yet many manage payroll for employees in multiple countries. Burnout is widespread, with 80% of organisations reporting that payroll teams are not functioning well, and stress particularly high in mid-market firms (28%).
The impact is evident, with 15% of organisations reporting more payroll errors and nearly a quarter (23%) considering outsourcing payroll to cope with the workload.
Technology adoption growing but gaps remain
Companies are investing in technology to manage complexity. Almost half (47%) already use AI in payroll, and another 46% plan to adopt it. Organisations are also prioritising CPF e-submission (39%), integrated payroll systems (38%), and automation or self-service tools (36%).
However, only half of organisations have real-time integration between payroll, HR, and accounting platforms. Many still rely on batch transfers or manual uploads, which increases the risk of errors and limits flexibility.
Ng concluded: "The message is clear: companies must act now to modernise payroll and equip their teams with the right tools and support. When payroll operates seamlessly, it does more than reduce errors – it creates the foundation for positive employee experiences and stronger workplace trust."
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