95% of businesses in Singapore issue itemised payslips

On 1 April 2017, the one-year grace period for compliance with the mandatory itemised payslips will end. Thankfully, the percentage of businesses issuing itemised payslips have increased from 74% in 2016 (before it became mandatory) to 95% this year.

Shockingly, according to Justlogin's Itemised Payslip Compliance survey, 88% of the businesses not compliant yet are unaware of the fact that the grace period for itemised payslip compliance ends at the end of this month. Digging deeper, a majority of these businesses (67%) were running payroll manually, only 20% made use of software, while the remaining 13% outsourced the process.

As for businesses already issuing itemised payslips, while the majority (64%) are making use of software to issue them, 25% are still doing it manually, either by pen and paper, or using spreadsheets. The remaining 11% have outsourced the process.

The survey also found that after upgrading from manual processes to HR software, businesses experienced on average, more than 40% time savings in HR.

With more businesses getting familiar with Software-as-a-Service (SaaS) or Cloud- basedsoftware solutions, the increase in software adoption can be fully attributed to the growth in adoption of cloud-based payroll software (from 12% in 2016 to 29% in 2017).

At the same time, the percentage of businesses running manual payroll processes had decreased by almost half (from 46% in 2016 to 27% in 2017). While on-premise software adoption remains stagnant at 33%.

Leading the way in running payroll on cloud-based HR software are SMEs, with 31% of SMEs using these software. However, the same percentage (31%) still run payroll manually, 30% make use of on-premise software, and 8% outsource the process.

Big enterprises lagged in terms of adopting cloud-based software, with only 23% using these systems. However, compared to SMEs, less big enterprises were still running payroll manually (20%). A majority (39%) make use of on-premise software, while the remaining 18% outsource the process.

ALSO READ: Asia’s best payroll software providers in 2016

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