A new study by global financial platform Airwallex has revealed that many Singaporean workers are bearing significant out-of-pocket expenses for work, with some spending more than S$20,000 annually before being reimbursed. The findings highlight a widespread financial strain caused by delayed reimbursements, prompting calls for better expense management solutions in workplaces.
The survey of 500 employees in Singapore found that over half (56%) spend up to S$5,000 a year on business-related expenses from their own pockets. A further 23% reported spending as much as S$15,000, while 5% said their annual costs exceed S$20,000 before they are reimbursed.
The burden is particularly heavy in certain industries. Hospitality and leisure topped the list, with 15% of workers spending more than S$20,000 annually on job-related costs. Manufacturing followed closely at 13%, and education ranked third at 8%.
Long waits for reimbursement deepen financial pressure
The study also highlighted how reimbursement delays compound the financial stress. Nearly one in five employees (19%) reported waiting between three and four weeks to receive their money back, while 8% said the process takes longer than a month. This contrasts sharply with expectations, as 28% of workers said they believe reimbursements should be completed within four to five business days.
Some companies are moving faster, with 24% of employees reporting reimbursements within four to five working days, and 6% receiving same-day payments. However, these figures underscore a significant gap between current practices and employee expectations.
The impact of these delays extends beyond inconvenience. About 41% of respondents said slow reimbursements have caused them financial stress, with younger employees aged 18 to 34 feeling the pinch most acutely. Nearly a third (28%) said they have dipped into personal savings to cover work-related costs while waiting for reimbursement. More than half (52%) resort to using credit cards to manage expenses, leaving them vulnerable to debt and interest charges if repayments are delayed.
The consequences also affect workplace engagement. Around 12% of workers said they have skipped company events to avoid upfront costs, while 7% revealed they have left a job because of frustrations with the reimbursement process.
Call for better expense management solutions
The research highlights the need for businesses to modernise their expense management systems. A large majority (85%) of employees believe that company-issued corporate cards would significantly ease concerns about reimbursements and reduce financial pressure.
As businesses navigate a challenging economic environment and rising competition for talent, improving reimbursement practices could play a vital role in supporting employee well-being and retention.
Lionel Tan, Director of Account Management, SME & Growth at Airwallex, said, “We’re focused on helping businesses remove unnecessary friction from day-to-day financial operations. By simplifying expense management, we’re easing the pressure on employees who would otherwise be out of pocket, while giving businesses greater visibility and control over company spend.
“With tools like instant reimbursements, real-time spend controls, and seamless integrations with accounting platforms, we’re making it easier for businesses to operate efficiently both at home and abroad.”
With financial well-being increasingly linked to job satisfaction and retention, adopting modern solutions such as Airwallex’s platform could help businesses create a more supportive and efficient workplace, while reducing the financial burden on employees.
