Half of Singapore’s workforce say they are struggling financially as wages fail to keep pace with inflation, according to Deel’s 2025 Singapore Payday Expectations Report. The study warns that these pressures, coupled with mounting compliance demands on payroll teams, are creating risks of errors and employee disengagement.

Financial stress deepens among workers

One in two employees in Singapore report they are “just getting by” or worse, compared with 37 per cent in Hong Kong. Only 13 per cent say their wages have matched inflation, with Millennials hit hardest — just 8 per cent see salaries keeping up with rising costs.

Nearly half (42 per cent) say they could sustain their lifestyle for less than three months without income, while 13 per cent would face severe hardship after just one month. To cope, workers are cutting back on discretionary spending (55 per cent), taking on freelance or part-time jobs (41 per cent) and relying on credit cards (47 per cent) or buy-now-pay-later services (33 per cent).

Demand grows for flexible pay models

The report highlights growing interest in alternatives to traditional monthly pay cycles. Almost one in five workers (18 per cent) want more frequent payments, while three in four (74 per cent) would consider using earned wage access (EWA), which allows employees to withdraw part of their salary before payday.

Gen Z workers are particularly interested, with 33 per cent showing strong preference for EWA. Parents managing family expenses also see value, though only a quarter of payroll teams currently invest in such solutions.

Beyond cash, nearly seven in ten workers (69 per cent) are open to alternative compensation such as company stock, loyalty points or even cryptocurrency. A majority also want flexibility in structuring pay, with 57 per cent preferring higher salary with fewer benefits.

Payroll teams under mounting pressure

While workers struggle, payroll teams are also showing signs of strain. Regulatory changes such as higher Central Provident Fund (CPF) salary ceilings have added complexity to payroll operations, with 77 per cent of professionals saying these adjustments increase workloads.

Smaller payroll teams are common — more than three-quarters of small and mid-sized firms have fewer than 10 staff managing multi-country operations. Burnout is rising, with 80 per cent of organisations reporting their payroll teams are “not functioning well”. Some 15 per cent note more payroll errors, and almost a quarter (23 per cent) are considering outsourcing.

Technology adoption grows but gaps remain

Companies are investing in technology to ease the burden, with nearly half already using artificial intelligence (AI) in payroll and another 46 per cent planning adoption. CPF e-submission, integrated payroll systems and automation tools are also priorities.

But only half of organisations have real-time integration with HR and finance platforms, leaving many reliant on manual uploads that increase risks of mistakes.

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 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.”

The report concludes that companies in Singapore need to modernise payroll systems to meet employee expectations while protecting operational resilience. Without action, both workforce engagement and payroll team capacity could erode further.