Half of Singapore’s workforce is experiencing financial stress, with payroll teams under increasing operational pressure, according to Deel’s 2025 Singapore Payday Expectations Report. The report highlights that most employees feel their pay has not kept pace with inflation, leading to potential payroll errors and employee disengagement. This situation underscores the urgent need for businesses to modernise their pay systems to retain talent and trust.
Financial hardship is now a common issue for many working Singaporeans, with 50% of employees stating they are just getting by or struggling financially. This figure is notably higher than in Hong Kong, where 37% report similar struggles. Millennials are particularly affected, with only 8% reporting salary increases in line with inflation. Additionally, 42% of workers say they could sustain their lifestyle for less than three months without income.
The report also indicates a growing demand for flexible pay models. Traditional pay cycles are becoming less relevant, especially among younger workers who prefer immediate access to earnings. Earned wage access (EWA), allowing employees to access part of their wages before payday, is gaining traction, although only 25% of payroll teams currently invest in such solutions.
Payroll professionals are facing intensified workloads due to regulatory changes, such as increases to CPF monthly salary ceilings. Over three-quarters of payroll teams report added processes, with many organisations considering outsourcing payroll to manage the strain. Karen Ng, Regional Head of Expansion at Deel, emphasised the need for companies to modernise payroll systems to prevent burnout and maintain trust.
