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Payroll might not be the flashiest part of running a business, but if you’ve ever had to scramble to correct CPF contributions or explain a payslip error to a staff member, you’ll know it’s one of the most important. In Singapore, where regulations are strict and employees expect timely, accurate payments, the right payroll software for SMEs is essential.
As we move deeper into 2025, businesses are looking for smarter, faster, and more reliable ways to manage payroll. And with government incentives and a strong push for digitalisation, there’s no excuse for sticking to outdated systems or manual processes.
So, what should you be looking for in payroll software this year?
- Automatic CPF and SDL Calculations
Let’s start with the basics. In Singapore, employers are legally required to make Central Provident Fund (CPF) contributions for eligible employees. There’s also the Skills Development Levy (SDL) to consider.
A good payroll solution like Million will automatically:
- Calculate CPF contributions based on employee profiles and salary
- Apply the correct SDL rates
- Update rates when changes are announced by CPF or MOM
No more second-guessing numbers or manually checking CPF tables — it’s all done for you.
2. IRAS Integration and Auto-Inclusion Ready
Filing income records with the Inland Revenue Authority of Singapore (IRAS) is another critical compliance step. And with the Auto-Inclusion Scheme (AIS) being mandatory for most employers, your software should make this process a breeze.
Look out for:
- Automatic generation of IR8A and Appendix 8A/8B forms
- AIS submission features directly built into the platform
- Tax clearance support for foreign employees (Form IR21)
This helps you stay on the right side of the law while freeing up time for actual business growth.
3. Support for Part-Timers, Contract Staff, and Hourly Wages
The modern workforce in Singapore is diverse. You might have a mix of full-timers, part-timers, interns, freelancers, and contract staff.
Your payroll software should be flexible enough to handle:
- Hourly or daily wages
- Overtime calculations
- Variable payments (e.g. commissions, incentives)
- CPF exemptions where applicable
Being able to customise for different work arrangements keeps your payroll accurate and your team happy.
4. Payslip Generation and Employee Access
Since 2016, MOM regulations have made it compulsory for employers to issue itemised payslips. Your payroll system should make this as easy as clicking a button.
Even better if:
- Employees can download their own payslips through a portal or app
- Payslips are stored securely for future reference
- You can automate the sending of payslips each month
It’s one less task on your to-do list — and your employees will appreciate the transparency.
5. Leave and Claim Integration
Payroll doesn’t happen in isolation. Leave balances, unpaid time off, and claims all impact salary calculations.
Look for a system that integrates leave and expense claims with payroll. That way:
- Approved unpaid leave automatically adjusts the month’s salary
- Reimbursements are added to the right pay cycle
- You don’t have to chase managers for approvals every month
This kind of integration helps you avoid errors and saves hours in admin work.
6. Multi-Currency and Multi-Entity Support (If Needed)
If your business operates across borders or handles foreign staff, you may need payroll software that supports multi-currency payments or has modules for managing multiple entities under one account.
This is especially useful if you:
- Run a regional team (e.g. Malaysia, Indonesia, or beyond)
- Pay vendors or freelancers abroad
- Need consolidated payroll reports across subsidiaries
It’s not a must for every SME, but worth considering if you plan to scale.
7. Customisable Payroll Reports
Whether you’re preparing for audits, reporting to directors, or applying for government grants, having access to detailed payroll reports is a huge plus.
You’ll want reports like:
- Monthly payroll summaries
- CPF payment history
- Cost per department or location
- Tax deduction reports
Better still, if you can customise these to suit your internal processes.
8. User-Friendly Interface and Local Support
Payroll can already feel intimidating — your software shouldn’t make it worse.
Choose a platform that’s:
- Simple to navigate
- Offers step-by-step guidance or tooltips
- Has local customer support (because explaining CPF problems to someone overseas doesn’t always work well)
Many Singapore-based providers now offer live chat or even phone support during local business hours, which makes a big difference when you’re on a tight deadline.
9. Cloud-Based and Mobile-Friendly
A must in 2025: your payroll system should be cloud-based. That means you can access it from anywhere — whether you’re working from home, travelling, or sipping kopi at your favourite cafe.
Mobile access is a bonus, especially for business owners and HR managers on the go. Some platforms even let employees apply for leave or check payslips via app.
It’s fast, secure, and fits the way modern businesses operate.
10. Data Security and PDPA Compliance
Payroll contains some of the most sensitive data in your business — salaries, bank details, NRIC numbers, the lot. Make sure your software provider follows PDPA regulations and has strong encryption in place.
Things to check:
- Is data encrypted at rest and in transit?
- Do they have two-factor authentication?
- How often is the system backed up?
Don’t cut corners here. A security breach could cost more than just money — it could damage your business reputation.
Wrapping Up
In 2025, payroll software isn’t just about paying salaries. It’s about managing your workforce with confidence, staying compliant with ever-changing regulations, and making your HR processes as efficient as possible.
Whether you’re a startup with five employees or a growing SME with fifty, investing in the right payroll system is a smart move, not just to tick boxes, but to set your business up for long-term success.
And with so many options in Singapore, there’s likely a solution out there that fits your team, your budget, and your workflow perfectly.
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