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Several companies surveyed in 2025 faced increasing workloads and time on payroll following regulatory changes. Let's find out how to change this in 2026.
This article is brought to you by Deel.
Payroll in Singapore has never been simple, but in 2025, it has become one of the most pressure-filled functions inside HR and finance. New regulatory requirements, ongoing CPF salary ceiling changes, talent shortages, and growing employee expectations have combined to create compounding challenges. For many organisations, the strain is becoming impossible to ignore.
Deel’s 2025 Singapore Payroll Report offers one of the clearest snapshots of these challenges and opportunities to adapt. Drawing on data from hundreds of organisations operating in Singapore, the report reveals an unmistakable trend: payroll teams are overwhelmed, systems are outdated, and leaders are struggling to keep up with the pace of change. 77% of companies experienced workload spikes following recent CPF adjustments, and 80% say their payroll teams are not functioning as effectively as they should. These numbers reflect structural pressures, not temporary challenges.
One of the biggest drivers of complexity is the rapid pace of regulatory change. Singapore already has one of the most rigorous payroll compliance environments in the region, but the volume and frequency of updates make it difficult for teams to stay ahead. For most organisations, the core issue is not a lack of knowledge but a lack of capacity. Payroll professionals spend an increasing amount of time recalculating contributions, reviewing compliance exceptions and adjusting to rule changes that ripple through every payslip. Integration gaps between HR, payroll, and finance systems only add to the workload, creating delays and reducing accuracy. The cumulative effect is clear: many teams are operating reactively rather than managing payroll strategically.
Alongside compliance pressure, capacity issues inside payroll teams are becoming more visible. Many organisations report shrinking teams, limited hiring budgets, and heavier cycles than ever before. The report highlights that burnout is affecting performance across the board, particularly during peak periods such as year-end, salary reviews, and regulatory updates. As manual work increases, so does the likelihood of errors, forcing teams to invest even more time into corrections and audits. What was once a manageable workload has turned into a continual backlog for many teams, placing both employee trust and compliance at risk.
Technology gaps are another major source of friction. While HR and finance have undergone significant digital transformation in recent years, payroll has often been left behind.
In many companies, systems do not connect, data does not flow automatically, and teams are forced to rely on spreadsheets or manual uploads to reconcile information. This slows down monthly cycles and increases the likelihood of mistakes, especially when managing diverse employment types such as full-time staff, contractors, cross-border workers, and EOR teams.
As a result, leading organisations are beginning to invest in automation, smarter validation tools, and unified platforms that integrate data across functions. These investments reduce repetitive work and improve accuracy, but adoption is still uneven across the market.
At the same time, employees in Singapore are expecting a more modern, transparent, and flexible payroll experience. The report notes that nearly three-quarters of employees now expect clearer visibility into their pay, easier access to information, and faster support when issues arise. Traditional monthly cycles do not always align with the expectations of today’s workforce, especially as Singapore’s employment landscape becomes more dynamic and incorporates more contractors, freelancers, and hybrid roles. Companies that invest in more flexible payroll models and improved employee communication see meaningful benefits in engagement and retention, while those that do not risk falling behind in an increasingly competitive talent market.
Against this backdrop, the 2025 Singapore Payroll Report offers a practical roadmap for organisations looking to strengthen their payroll operations. It explains the root causes behind today’s challenges and provides guidance for leaders who are considering automation, integration, or process adjustments. It also includes insights on how companies are adapting to rising employee expectations and how a more modern payroll experience can improve both accuracy and morale. For teams that are currently operating at their limits, the report provides a clear view of what must change—and which investments deliver the greatest impact.
Payroll is one of the most fundamental business functions, yet its complexity is often underestimated. As Singapore enters a period of continued regulatory change and heightened workforce mobility, organisations need systems that are resilient, compliant, and designed for scale. Manual processes and fragmented systems are no longer sufficient for the challenges ahead. Leaders who modernise their payroll operations now will be better positioned to deliver accuracy, efficiency, and employee retention.
For HR, finance, and operations leaders navigating increasing pressure in 2025, this report is an essential guide. It distills the challenges affecting payroll teams today and offers the clarity needed to plan for the future with confidence.
Download the full 2025 Deel Singapore Payroll Report here.
Photo / Provided by Deel
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