HR Tips

HR teams in Singapore are no longer handling only hiring and performance reviews. They are also under increasing pressure to manage tax reporting under the IRAS Auto-Inclusion Scheme (AIS). What used to be a once-a-year task has evolved into a year-round responsibility that requires accurate payroll records, CPF tracking, and seamless employee data management. As IRAS continues to digitise tax processes and tighten compliance enforcement, many businesses find that the traditional spreadsheets and manual systems they have used for many years simply can’t keep up. That’s why successful companies are migrating to HRMS in Singapore (human resource management system — a software suite for coordinating and executing key HR functions, from recruitment to payroll). By centralising payroll and automating statutory filings, these comprehensive solutions keep your HR operations aligned with AIS requirements. Understanding HRMS in Singapore and IRAS In Singapore, tax compliance falls heavily on HR — and your HRMS directly affects how well you meet IRAS requirements. If you’re still managing your payroll manually or if your employee data and pay records are spread across disconnected and outdated tools, you are effectively increasing your risk of reporting errors, late submissions, and non-compliance. Here’s how poor payroll processes can put your business at risk: Compliance area What can go wrong Regulatory consequences How HRMS in Singapore can help Taxable and non-taxable income Misclassifying allowances, benefits-in-kind, or compensation components Leads to inaccurate tax reporting, which may trigger audits or penalties from IRAS Standardises pay element categorisation and applies consistent tax treatment across employee records CPF contributions Errors in calculating Mandatory or Voluntary CPF contributions Affects taxable income declarations and may result in discrepancies between CPF and IRAS filings Automates CPF calculations based on employee age, citizenship, and wage components using the latest statutory rules Tax clearance (Form IR21) Incomplete or outdated payroll data submitted in the IR21 form Can delay the final payout for foreign employees and breach IRAS tax clearance requirements Pulls real-time data into IR21 forms to ensure accurate final tax computations before employment termination In short, an effective IRAS-compliant HRMS in Singapore is a risk mitigation strategy. It supports tax reporting by: Generating employee income data in the correct formats for submission Maintaining a clear audit trail for allowances, bonuses, and benefits-in-kind Ensuring that all benefits are properly classified and reported This level of integration ultimately simplifies your year-end reporting while also helping your HR team stay compliant throughout the year. ⚠ Quick recap Who needs to comply with AIS? Mandatory for: Employers with 5+ employees or those who’ve received a Notice to File from IRAS What you must report: Salaries, bonuses, commissions, directors’ fees, and benefits-in-kind Under the AIS, employers must submit employee income information electronically through IRAS’ myTax Portal. To do this, you’ll need to generate IR8A forms (and Appendix 8A/8B or IR8S if applicable), validate them using IRAS’ validation tool, and upload them by the March 1st deadline. An IRAS-compliant HRMS in Singapore can simplify all of the above, turning your payroll data into AIS-ready formats without you having to manually map income components or calculate statutory deductions. HRMS vs. manual workflow Manual processes may get the job done, but at what cost? Let’s compare. Process Manual workflow With HRMS in Singapore Data collection Multiple spreadsheets and manual updates Centralised, real-time data tracking CPF and benefits tracking Prone to errors, must be updated manually Auto-updated with current rules IR8A / IR21 preparation Manual compilation and formatting Auto-generated and IRAS-compliant Submission validation Requires external IRAS validation tools Built-in format checks and field requirements Audit trail Scattered or incomplete Automatically recorded and accessible Try Adaptive Pay’s HRMS in Singapore Do you need help integrating payroll, HR, and submission workflows so you stay IRAS and AIS-compliant? Schedule a demo today with Adaptive Pay. Call them at +65-6708-9398.

Q3 ended with key regulatory and tech-driven updates to Singapore’s HR landscape. For SMEs, staying ahead of these changes requires more than spreadsheets. These developments require smart, integrated HR software (or Human Resource Management System, HRMS) that eliminates compliance risk and provides more time for talent strategy and planning. What should you be preparing for? From CPF rate changes to workplace flexibility guidelines and AI integration efforts, we’re breaking down what’s new and what’s changing to help you keep your HR operations compliant. Investing in HR software for employee development Over 10% of job postings in Singapore across almost half of all occupations mention AI, according to Indeed’s recent survey. This trend points to a growing disconnect between the skills companies actually need and what their existing workforce can currently deliver. It also puts HR in charge of: Identifying emerging skills gaps Rolling out upskilling or reskilling programs Tracking whether those efforts affect performance Most companies still handle this manually using spreadsheets, scattered training records, or ad-hoc evaluations. But with workplace demands changing quickly, this manual approach isn’t just inefficient — it’s also highly unsustainable. Successful enterprises are future-proofing their workforce strategies and building long-term capability by migrating to HR software, particularly comprehensive HRMS that can allow their teams to: Spot skills gaps through real-time data Assign personalised learning paths Measure training outcomes against business KPIs By embedding development into a scalable system, HR teams ensure that every investment in upskilling directly supports the company’s long-term direction — especially as AI and digital transformation reshape talent needs. Central Provident Fund (CPF) adjustments The CPF Monthly Salary Ceiling has increased to $7,400 in January 2025 and is set to reach $8,000 by 2026 — part of a phased effort to help employees save more for retirement. For HR teams, this means having to update salary caps while also applying the right contribution rates based on age brackets, which change at 55, 60, and 65. Miss even just one ceiling update or apply the wrong rate, and the seemingly small error could immediately introduce underpayments into multiple pay cycles, and eventually draw formal reconciliation notices from the CPF Board. A properly configured HR software can automatically update salary ceilings and CPF bands in your payroll engine. This reduces the risk of human error in managing rule changes across employee profiles and helps your company stay compliant even as the rules change quarter by quarter. Growing interest in pay flexibility A staggering 69% of employees are open to non-case compensation and 18% percent want more frequent pay cycles (such as weekly or fortnightly), according to The Singapore Payday Expectations Report 2025. The workload for payroll teams has become more complex as a result. First, non-cash compensation requires a sophisticated system to track entitlements, approvals, and disbursement. Second, moving a single monthly payroll to weekly cycles increases administrative load. These are the reasons payroll teams risk delays, errors, and significant burnout without the right HR software. A fully integrated HRMS platform can combine information from Attendance, Leave, and Claims Management directly into Payroll, allowing your system to process complex, multi-cycle payrolls and automatically handle claims and benefit allowances with a single click. Try Adaptive Pay Taken together, these changes reflect just how quickly the HR landscape in Singapore is evolving — and why more companies are turning to centralised, reliable HR software to keep pace. If your current system is failing to keep pace with vital updates, we invite you to explore how Adaptive Pay can transform your HR operations. Schedule a demo today through +65-6708-9398, or send us an email at info@adaptivepay.com.sg.

Do you want to improve the way you manage your employees while keeping employee satisfaction up? Or are you looking for a way to protect yourself from some of the many issues that can hurt your business? Whichever of these it is, the answer is simple: you need HR risk management. If you’ve never heard of it before or are uncertain what it entails, you’re on the right page. Today, we’ll go over what it is and how it can help you fight a lot of business problems. You’ll also get the basics of how to implement it as we discuss common HR risks, so you can get started on planning your own HR risk management. What is HR Risk Management? There are many ways to describe HR risk management. We can put it this way: it’s the process of looking for potential HR risks and finding the best solution to handle or prevent them even before these risks eventuate. In other words, it’s looking out for potential HR problems and addressing them before they become problems. The focus for this type of risk management is usually the employees. This can be related to the way they’re managed, how they behave, how much they can access in their roles, or even how you hire and let go of employees. For example, some risks that may arise are internal theft, benefits liabilities, employee-related lawsuits, and workers’ comp. We’ll talk about them in more detail later, but these give you an idea of what risks HR risk management addresses. The risks faced often depend on the nature of the business and its structure. For instance, SMB HR risks are usually slightly different from those faced by bigger organisations. What’s more, note that all employees are included in the risk assessment: it doesn’t matter whether you’re in the C-suite or a part-timer. Why is it important? HR risk management is vital because it ensures that your company is ready for potential issues that would otherwise hamper it if they do arise. Remember: businesses are powered by people. Employees make your business possible and are critical in achieving your aims and success. Without the right employees to power your organisation, you’d be unlikely to get anywhere. An HR risk management plan helps you with that. Among other things, it does the following: Mitigates the risks of taking on employees who may cause trouble Make better hiring decisions Manage your human resources as effectively as possible This gives you an idea of the value HR risk management brings to the table. And you wouldn’t be alone in seeing that value: it’s why we’re seeing a surge in popularity for HR systems in Singapore that have risk management tools in them. Most of the best HR software is actually designed specifically around risk management strategies now. As such, more and more companies are integrating risk management into their organisations as they modernise. Of course, you don’t technically need HR software to do risk management. However, modern utilities do make it much easier, especially as certain tasks and can be automated with software now. Common HR Risks to Address in Risk Management Now that you know what risk management is, let’s talk about some of the most common HR risks and how to deal with them. Again, remember what we said about risks depending on companies’ structures, natures, and unique needs. This means that your organisation may require unique strategies for certain risks – ones that we can’t provide for in this generalised guide. Even if the recommendations here aren’t exhaustive, though, they can still give you a sense of what to do and how to address the risks discussed. 1. Taxes, Regulations, and Compliance Most HR personnel already know that there can be a lot of legalese involved in their jobs. There are laws and regulations to look out for. Think of employment regulations, payroll requirements, and the like. Companies need to comply with a lot of legislation. The straightforward solution here is for your HR personnel to audit the relevant departments and processes regularly for compliance. This can be a lot of tedious work, granted, but it’s worth it to prevent costly fines from errors or oversights. Fortunately, as we mentioned earlier, there’s HR software now that can help you with it, like ones that do automated tax calculations and filing for payroll regulation compliance. 2. Legislative Changes Laws change more often than people think. Even laws affecting employees, like ones on disability inclusions, can be altered at any time. Updates to legislation have to be tracked and observed by your HR team. Again, it’s about minimising the possibility of getting slapped with a non-compliance penalty or fine. An easy fix is to make sure your HR team has news alerts set up for the appropriate topics and agencies, like the organisations that usually announce such legislative changes. 3. Technological Security Concerns Well, we all know digitalisation has been sped up by the pandemic. What this means, though, is that businesses now have bigger responsibilities than ever before when it comes to data security. The solution here is to ask your IT team to provide suggestions on security. Ask them to help your HR team disseminate good operating procedures across all personnel. 4. Recruitment Woes This is one of the most common concerns for HR in all organisations. There are so many risks that come with recruitment, like hiring people with a history of legal issues or not hiring enough people for the business’s needs. All of these can be resolved with a strong hiring system. The goal is to mitigate those risks we mentioned, which means having clear processes for background checking, standardised requirements, and so on. 5. Onboarding Processes Onboarding and training are other common pain points. A lot of organisations don’t realise that they’re having trouble getting employees to adapt to their roles simply because of their faulty onboarding processes. A good solution here is to survey or interview your current

Did you know that micro, small and medium enterprises (SMEs) make up for more than two-thirds of all jobs contributing to about 48% of GDP in Singapore? With the right support, these companies could significantly boost economic growth! SMEs face different challenges compared to their larger competitors. This includes having limited ability and resources for planning. Working towards business goals is another problem, such as the recruitment and retention of core staff. The same management team that handles the issues mentioned usually also needs to oversee the planning and delivery of work in the company. Now that sounds stressful! As you can imagine, this is a difficult job and may result in stressed-out employees. (And we all know where burnt-out employees go. Here’s a hint: resignation!) Moreover, many SMEs are still operating on a fairly traditional basis, and may have not embraced digital technology to further move their business forward. So we can’t help but wonder: with the acceleration of digitalisation, what is the future of SMEs, really, and where are we headed? Let’s explore this together! Finding the right team Ensuring cultural fit for the company We can all agree that finding the right employees to form a dream team can directly lead to a company’s success. When talking to prospective hires, it’s important to find out if the person’s values and work ethics align with that of the existing team members. For example, in startups, having an adaptable attitude is an absolute must-have. The startup work culture requires an individual to wear multiple hats and take on different roles, which may be outside of their area of expertise. But that may not be everyone’s cup of tea! So when interviewing, ask the right questions to make sure that your potential hire has the right attitude and ethics to fit your growing business. Mapping career progression for employees Another thing to take note of: map out a path of progression for each employee. Though not everyone may ask about it directly, employees want to know what career prospects they have with your company. And if they feel that you can bring their career to the next stage, they’re more likely to stay! On the other hand, if they feel opportunities are limited or there’s no room for further growth, they may start looking for opportunities elsewhere. As globalisation continues, companies are also no longer limited by geographical distance when choosing to hire employees anyway. This means job seekers now have an easier time looking for companies that can hire them remotely. This brings us to the next point of digitalisation. Going digital Digital transformation has been a big topic among businesses and government sectors in recent years. And there’s no doubt that this has been accelerated by the COVID-19 pandemic in 2020, where businesses were forced to move online in order to survive! Technology is also now more accessible at all levels of the workplace. Yes, we’re referring to the increase in uptake of collaborative apps and cloud solutions like Microsoft Teams and Asana. These platforms help employees stay productive yet connected with the rest of their teammates, whether they’re working from their own homes in the same city or from a different continent altogether! Digitalisation for SMEs SMEs can make the most of these solutions to grow and expand their horizons too. If you think about it, a key factor to an SME’s success is having reliable people. And the management and HR team are in charge of taking care of these employees. But that’s not their only role. In a small company, (where there are only 1-2 HR staff) they’re likely to also have other responsibilities, such as managing: Attendance tracking Payroll processing (which could require hours of full attention each week) Recruiting and interviewing Benefits and compensation Employee training and wellbeing And in the case of SMEs, the management’s role not only involves overseeing staff, but also the planning, directing, and overseeing operations and the fiscal health of a business unit/department. On top of all of that, they also have to look out for their own career development. Just reading that made us tired! By digitising the HR process, managers and the HR team can collect data more easily and therefore make decisions more quickly. This means freeing up time for them so that they can work on other high-value tasks. It’s a win-win situation for all. The future is digital For an SME to thrive in this day and age, embracing new business trends and solutions is a must, to not only help your business stay afloat, but also give it a better chance at success! (And that means going digital if you haven’t already done so!) The future of SMEs relies on not only having the right employees, but also embracing technology and digitalisation. People training and management can only benefit your business when it’s paired with the right mindset. If you want to know how Adaptive Pay can redirect your business path and make your HR process simpler, contact us today for a free demo. HR Tips