7 Reasons to Outsource Your Payroll in Singapore

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The preparation of payroll and salary distribution is a time-consuming process. Most companies have an in-house payroll department for the rigorous task of calculating salaries, deductions, taxes, and benefits and ensuring their compliance with various legislations and guidelines. The work is complicated, and more often than not, costly.

However, in Singapore, the country is considered the hub of payroll processing in the Southeast Asian region. In Singapore, companies are encouraged to outsource their payroll to full-service payroll processing firms. Although challenges remain and evolve, outsourcing your payroll function in Singapore is a relatively less complex process than its neighbours.

Here are seven advantages you will obtain from outsourcing your payroll services in Singapore.

1 Outside Expert Knowledge

Effectively managing payroll does not just mean calculating your employees’ salaries. There are several evolving regulations, innovation, ideas, and best practices that you can only learn from experience.

Professional service providers that offer Payroll outsourcing have gained diverse experience working with organizations of all sizes and various industries. Aside from the payroll outsourcing services, they can also provide industry-specific advisory that will suit your needs.

2 Up-to-date Technology and Software

Building an in-house payroll software takes time for any company's IT department and will likely be cost-inefficient. Operating and maintaining it means another computation of expenses.

Payroll outsourcers in Singapore use up-to-date technology to create payroll infrastructure aligned with their client's businesses. Payroll outsourcing helps to lessen the cost of building in-house payroll software on your own. Rest assured that you will receive expertly prepared payroll reports and updates regularly by outsourcing your payroll, resulting in healthier payroll practices.

3 Compliance With Payroll Regulations

Following the Singapore Ministry of Manpower’s Employment Act, employers must pay their staff their correct salary within seven days after the salary period.  It is also required to identify the basic salary amount, how often compensation must be paid, deductions made, net monthly salary, and other variables in every payslip they are to release. They must also issue itemized payslips to their employees covered by the Employment Act. These are just among the dictates of the Singapore Employment Act, an imperative regulation that all companies in Singapore must familiarize themselves with and adhere to. Failure to abide by the provisions of the Employment Act is an offence liable to hefty penalties and permanent damage to their reputation.

Experienced payroll outsourcers in Singapore ensure accuracy and compliance with the Singapore Employment Act, among other payroll-related regulations. It is to your company’s advantage if you employ their services.

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4 Cost Savings

According to PayScale.coma Human Resource (HR) officer in Singapore earns a starting average salary of SG$31,210 per annum, which can quickly increase based on experience. Multiply this by the number of people you require to run internal payroll for your company. The cost would go from hundreds to thousands of Singaporean dollars on staff alone, and that still excludes the cost of software, printing, training, etc. other expenditures.

Some payroll outsourcers in Singapore charge only a fraction of what you would have spent for an in-house payroll department. If you entrust your payroll to these outsourcers, you can quickly eliminate the above-computed costs.

5 Time Savings

Time is money, and payroll is a time-consuming process that consumes money—figuratively AND literally. Hiring a payroll outsourcer in Singapore will enable you to focus more on other productive tasks, like business development, market and product research, and revenue generation. Let an expert take care of your payment proceedings while you formulate your other business plans. 

6 Stress Management

Managing payrolls can be tiresome and stressful. The regulations, by-laws, taxes, provident fund percentages for different age groups, employee benefit programs, employees joining and leaving, and other factors are sometimes just too much for the human brain to absorb.

Processing the salaries and reimbursements of employees can be pretty challenging. There will be moments when the in-house assigned to this task lose focus, committing an unintentional human error that results in delays or inaccuracies. When the payroll gets delayed, employees asking about it is the icing on the stress-flavoured cake.

Payroll outsourcers in Singapore offer a vast array of reporting solutions and can confidently answer employee queries regarding their payroll. They will take full responsibility for your payroll, making it a point to minimize delays and errors and correcting any that may arise. Thus, help save you from hassles and stress, especially if you run a small company.

7 Business Privacy

People coming and leaving your company is a reality you cannot get away with. When one or more payroll staff leaves your company, they take with them the knowledge of your company’s business processes and payroll, with the risk of information leakage. Hiring a new set of people with the same skill sets to replace them is another issue to think about, especially when training them to be oriented with your company’s vision, mission, and best practices take time (and again, time is money).

By outsourcing a payroll processing firm, not only do you eliminate the need for an in-house payroll department, but you also get to safeguard your confidential business data.


Payroll is one of the essential aspects of a business. It is often merely viewed as a salary processing function. Still, it has an undeniably mammoth effect on a company’s overall reputation and image and the satisfaction and productivity of its people.

Employees want to receive their salary on time. When they do, it motivates them more to participate and produce results at work - This is why companies need to give payroll its due importance. Outsourcing to a payroll processing firm can help solve a lot of your payroll-related problems.

At Precursor, we have multi-step checking and monitoring mechanisms to ensure no mishaps in your payroll operations. We have a specialized team that keeps regular track of the payroll-related laws, rules, and policies in Singapore to ensure that your business is in 100% compliance with the applicable legislation.

By entrusting your payroll services to Precursor, you can be confident that your employees are paid the exact salary they are owed, on time, and in accordance with the Singapore Employment Act and other statutory rules.

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