Half of Singapore’s workforce is struggling to cope financially, even as payroll teams come under increasing operational pressure, according to Deel’s 2025 Singapore Payday Expectations Report. The findings highlight growing concerns over financial insecurity, limited wage growth, and the urgent need for modernised payroll systems.
Financial challenges deepen among workers
The report found that one in two employees in Singapore are either just getting by or struggling financially, a higher proportion compared to Hong Kong, where 37% of workers reported the same. Only 13% of Singaporeans said their wages had kept pace with inflation, with Millennials reporting the hardest hit—just 8% said their salaries had kept up with rising costs.
Nearly half of those surveyed (42%) said they could only sustain their lifestyle for less than three months without income, while 13% admitted that even one month without pay would be catastrophic. Many are adjusting their spending habits by cutting discretionary expenses (55%) or taking up side jobs (41%). Others are relying on financial tools such as credit cards (47%), buy-now-pay-later schemes (33%), and earned wage access (20%).
Flexible pay models gain interest
As financial pressures rise, employees are showing more interest in alternative pay models. Almost one in five workers (18%) expressed preference for more frequent pay cycles, with weekly or twice-monthly wages seen as favourable. Earned wage access (EWA), which allows employees to withdraw part of their salary ahead of payday, is gaining traction. Although 47% of workers had never heard of it, nearly three-quarters (74%) said they would consider using it if offered, with strong interest among Gen Z workers, parents, and those expecting children.
Workers are also seeking flexibility in how pay is structured. If given a choice, 57% would opt for higher salaries with fewer benefits, while 54% would prefer packages that allow them to mix salary, leave, and benefits. Around 24% were willing to accept lower pay in exchange for hybrid or remote working arrangements.
Alternative compensation methods are also gaining appeal, with 69% of respondents open to receiving pay in other forms such as company equity (46%), employer-backed rewards (34%), and even cryptocurrency (28%).
Transparency around pay remains an important factor. While 71% of Singaporeans support industry-wide salary disclosure, most still find negotiations difficult, with 72% describing hiring-stage salary talks as challenging. Only 41% said they felt comfortable discussing pay with colleagues.
Payroll teams under mounting strain
The pressures are not limited to employees. Payroll professionals are also feeling the burden, with 77% reporting heavier workloads linked to recent changes in CPF salary ceilings and other regulatory updates. Poor integration across payroll, HR, and finance systems adds further complexity, leading to higher costs and slower payroll runs.
Burnout is widespread, particularly among small and mid-sized companies where payroll teams often number fewer than 10 but are still responsible for multiple countries. According to the study, 80% of organisations said their teams were struggling, with 15% reporting a rise in payroll errors and nearly a quarter (23%) considering outsourcing payroll altogether.
Technology adoption is helping ease some of these pressures. Almost half of companies (47%) already use AI in payroll, while another 46% plan to adopt it. Investments are also being made in CPF e-submission, integrated payroll systems, and automation tools. However, Deel warned that only half of organisations have real-time integration between payroll, HR, and accounting platforms, leaving many reliant on manual processes that increase risks of errors.
Karen Ng, Regional Head of Expansion, Enterprise, North and South Asia at 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 report was based on a July 2025 survey of 1,000 full-time employees and 250 payroll decision-makers in Singapore, conducted by Milieu Insight.
