A recent study by Airwallex, a global financial platform, has highlighted the financial burden faced by Singaporean employees due to delayed reimbursements. The survey of 500 workers found that more than half spend up to $3,650 (S$5,000) annually on business-related expenses out of pocket, with some incurring costs exceeding $14,600 (S$20,000) before being reimbursed.
The hospitality and leisure sector is particularly affected, with 15% of employees reporting expenses above $14,600 (S$20,000). Manufacturing and education sectors follow closely. The study also revealed that 19% of respondents wait three to four weeks for reimbursement, and 8% wait over a month, despite 28% of employees believing payments should be made within five days.
Financial strain is a significant issue, with 41% of employees experiencing stress due to reimbursement delays. Younger workers, aged 18-34, are most affected, with 28% resorting to personal savings to cover costs. Additionally, 52% use credit cards for business expenses, risking debt if reimbursements are delayed.
The study suggests that implementing corporate cards and instant reimbursement platforms could alleviate financial pressure and improve workplace satisfaction. Lionel Tan, Director of Account Management at Airwallex, stated, “We’re focused on helping businesses remove unnecessary friction from day-to-day financial operations.”
As businesses face economic uncertainty and talent retention challenges, improving expense management processes could be crucial for supporting employee well-being and financial stability. The findings underscore the need for modern tools to create a more supportive and efficient workplace.
