Half of Singapore’s workforce are experiencing financial stress, even as payroll teams face mounting operational pressures, according to Deel’s 2025 Singapore Payday Expectations Report.
While payroll professionals grapple with unprecedented compliance-driven workloads, most employees report their pay has not kept pace with inflation. Together, these pressures are increasing the risks of payroll errors and employee disengagement, underscoring an urgent need for businesses to modernise pay systems before both talent and trust are lost.
Financial strain on Singapore workers deepens
Financial hardship is now commonplace for many working Singaporeans. One in two employees (50%) say that they are just getting by or struggling financially, and significantly more Singapore workers report financial struggle compared to Hong Kong (37%).
Only 13% say wages have kept pace with inflation, with Millennials hit hardest – just 8% report their salaries have risen in line with costs.
Alarmingly, 42% report they could sustain their existing lifestyle for less than three months without income, with 13% saying even one month without pay would be catastrophic.
To make ends meet, workers are cutting back on discretionary spending (55%) and taking on part-time or freelance jobs (41%). Many are also relying on financing options such as credit cards (47%), buy-now-pay-later options (33%) and earned wage access (20%).
New pay models gain traction
These pressures are reshaping how employees think about pay, pushing interest in more flexible and immediate options. Traditional pay cycles are losing relevance, especially among younger workers who value immediate access to earnings.
Nearly one in five (18%) would prefer a more frequent pay cycle, with weekly or twice-monthly payments the most popular options.
Earned wage access (EWA) – an on-demand pay arrangement that lets employees access part of their wages before payday – is gaining recognition as a valuable financial service in Singapore, particularly among younger workers and parents managing family expenses.
Awareness is still growing – with 47% never having heard of EWA – but the majority find the concept beneficial, and nearly 3 in 4 (74%) would consider using it if offered by employers. Gen Z workers lead with 33% showing definite interest.
Similarly, 29% of working parents and 32% of those expecting children expressed openness to EWA. Despite demand, only around 25% of payroll teams currently invest in EWA solutions, making it a low priority among payroll technology investments.
Workers demand flexibility and transparency from payroll
If Singapore employees could customise their pay packages, they’d choose a higher salary with few benefits (57%), flexibility to mix salary, leave and benefits (54%), or a lower salary in exchange for remote or hybrid work arrangements (24%).
These preferences highlight the growing demand for personalisation and flexibility in remuneration structures to better meet diverse workforce needs.
Alternative compensation beyond cash is also gaining traction. About seven in 10 (69%) Singapore employees are open to receiving pay in other forms, including stocks or equity (46%), employer-backed rewards or loyalty points (34%), and cryptocurrency (28%).
These options reflect evolving employee preferences in how remuneration is valued.
Singaporean workers also support greater pay transparency. While 71% feel comfortable with industry-wide salary disclosure, many still find salary negotiations uncomfortable – 72% describe hiring-stage salary talks as challenging, and only 41% are at ease discussing their pay with coworkers, indicating a cultural tension around salary conversations despite openness to transparency.
At the same time, knowledge gaps are fueling frustration. Only 29% of employees feel able to confidently decode their payslips, while three-quarters believe employers could do more to clarify them. More than a quarter (27%) are not sure who to contact with payroll questions.
These gaps show why employees are pushing for greater transparency and simplicity in how pay is managed.
Payroll teams are burning out under mounting pressure
The squeeze is not one-sided. Payroll professionals report workloads intensifying, driven primarily by recent increases to CPF monthly salary ceilings and the need to recalibrate systems amid ongoing regulatory changes.
Over three-quarters of payroll teams (77%) say these CPF shifts have added extra processes to operations, particularly where poor integration between payroll, HR and finance systems persists — an issue highlighted by 56% of organisations surveyed. This can lead to increased costs and time to complete payroll runs.
Talent shortages compound the problem. More than three-quarters of SMEs and mid-sized firms run payroll teams of fewer than 10 people, yet many also manage payroll for employees in multiple countries. Burnout has become commonplace, with 80% of organisations saying their teams are not functioning well, with particularly high stress levels in mid-market firms (28%).
These pressures are beginning to show in performance: 15% of organisations report an increase in payroll errors, and nearly a quarter (23%) are considering outsourcing payroll altogether to cope with the mounting backlog and fatigue.
Technology adoption is growing but root challenges remain
To manage this complexity, businesses are investing in technology. Almost half of organisations (47%) already use AI in payroll, while another 46% are planning to adopt it. Companies are also prioritising CPF e-submission (39%), integrated payroll systems (38%) and automation or self-service tools (36%) to ease administrative burdens.
However, only half of organisations have real-time payroll integration with HR and accounting platforms. Many still rely on batch transfers or manual uploads, which increase error risks. Without addressing these system gaps, technology adoption alone will fall short of delivering the transparency and flexibility workers expect.
Karen Ng, Regional Head of Expansion, Enterprise, North and South Asia, Deel, said: “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.
“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.”
