Singapore Guide: PSG Grants for Payroll Software (2026)
This 2026 guide provides a practical roadmap for Singapore SMEs seeking the Productivity Solutions Grant (PSG) for payroll software and HRMS. Whether you are operating from Raffles Place, Jurong East, or Paya Lebar, navigating the Business Grants Portal (BGP) requires a clear understanding of the “no-payment before approval” rule and the selection of pre-approved solutions. We detail the current eligibility criteria, application steps, and the required evidence pack for successful claim submissions. This resource is for educational purposes and does not constitute legal or tax advice; always verify the latest funding caps and support levels on the official GoBusiness or Enterprise Singapore portals.
What is the PSG Grant for Payroll Software & HRMS?
The Productivity Solutions Grant (PSG) is a Singapore government initiative designed to help Small and Medium Enterprises (SMEs) adopt IT solutions and equipment to enhance business processes. For employers in business hubs like Tanjong Pagar or Marina Bay, the grant is commonly used to subsidise the cost of “pre-approved” payroll software and HRMS packages. These solutions are vetted by IMDA to ensure they meet technical requirements, such as automated CPF calculations, IRAS AIS (Auto-Inclusion Scheme) readiness, and standard payslip generation, reducing the administrative burden on HR teams transitioning from manual spreadsheets.
Unlike general grants, the PSG is scoped specifically to “pre-approved solutions” listed in the GoBusiness directory. This means an SME cannot claim for any software; they must choose a vendor and package that has already been assessed for its productivity impact. Funding support levels and annual grant caps are subject to current published guidance from Enterprise Singapore. Employers must verify the specific “solution function” and package scope before requesting a quotation, as deviations from the approved package can lead to grant rejection during the claim phase.
Successful PSG adoption requires a disciplined workflow: checking eligibility, obtaining a quotation that matches the directory scope, and applying via the Business Grants Portal (BGP) using CorpPass. It is a critical rule that no contract should be signed and no payment made before the Letter of Offer (LOF) is accepted. By following this structured approach, businesses in Ang Mo Kio, Ubi, or the CBD can professionalise their payroll operations with significant cost support while ensuring full alignment with Singapore’s statutory reporting standards.
Our guide helps you prepare your application documents and understand the necessary CorpPass roles to avoid common delays in the PSG approval process.
SME Eligibility Criteria & Grant Support Levels
To qualify for the PSG payroll software grant in 2026, your business must be registered and operating in Singapore. According to current published guidance, the core eligibility requirements include at least 30% local shareholding (by Singaporeans or PRs). Furthermore, the company’s group annual sales turnover must not exceed S$100 million, or its group employment size must be 200 workers or fewer. The IT solution purchased must be used specifically in Singapore to support local operations. Always verify these thresholds on the official GoBusiness portal as criteria can be adjusted by the government periodically.
Support levels for PSG are currently stated as a percentage of the total qualifying cost, subject to an annual grant cap per financial year. This cap applies to all PSG applications across various functions (e.g., HRMS, accounting, digital marketing). It is important to note that the support is only for the “pre-approved” components of the package; additional customisations or unrelated consulting fees are typically not supportable. Businesses in the Jurong-Tuas industrial corridor or Woodlands should also ensure they have the necessary CorpPass “Grant Preparer” and “Grant Acceptor” roles assigned to their personnel before starting the application on the BGP to prevent administrative bottlenecks.
Failing to meet the local shareholding or company size criteria is a primary reason for rejection. We recommend reviewing your ACRA business profile before submitting your BGP application.
Step-by-Step PSG Application & BGP Workflow
Applying for the PSG payroll software grant requires adherence to a strict chronological workflow. Follow these 6 steps to ensure your application is processed efficiently:
1. Verify Eligibility & CorpPass Roles – Ensure your SME meets the local shareholding and size criteria. Assign the correct roles in CorpPass: a “Preparer” to draft the application and an “Acceptor” (typically a Director or authorized officer) to sign the Letter of Offer (LOF) later. Risk Note: Applications cannot be submitted without proper CorpPass authorization.
2. Select Pre-Approved Solution – Browse the official GoBusiness PSG directory under the HRMS/Payroll category. Confirm that the specific package meets your functional needs, such as CPF contribution files and AIS integration for IRAS reporting. Action: Only choose from the official list of vendors.
3. Obtain Official Quotation – Contact the pre-approved vendor to get a quotation. Ensure the quotation matches the package name and scope listed in the directory exactly. Mistake Warning: Do not add unrelated services to this quotation, as it may complicate the approval process.
4. Apply on Business Grants Portal (BGP) – Log in to BGP with CorpPass. Select “Get a Grant,” choose the sector, and then “Productivity Solutions Grant.” Upload your quotation and fill in the productivity impact questions. Critical Rule: Do not sign any contract or pay any deposit before this step is completed.
5. Wait for LOF & Accept – After Enterprise Singapore reviews your application, you will receive an email notification. The authorized “Acceptor” must log in to BGP to accept the Letter of Offer. Next Step: Only after accepting the LOF is it safe to sign the vendor’s contract and make payment.
6. Implementation & Claim Submission – Onboard the software and use it for the required period (check your LOF for the specific duration). Once implemented, submit your claim via BGP with the “Evidence Pack”: invoice, bank statements proving payment, and required usage proof. Note: Claims are typically processed on a reimbursement basis.
By following this sequence, businesses from Changi to Jurong can mitigate the risk of grant rejection. This disciplined approach ensures that your payroll transformation is supported by the grant while staying compliant with all government audit requirements.
This workflow provides a clear roadmap for your digital transformation. We help Singapore employers verify their readiness for the PSG application process.
The “No Payment Before LOF” Rule: Why It Matters
The most common reason for PSG rejection is the violation of the “no-payment” rule. Commencement Pillar: SMEs must not sign a contract, make any payment (including deposits), or start using the software before submitting their application on the Business Grants Portal. Retrospective Exclusion Pillar: PSG is not a retrospective grant; it is designed to encourage new productivity investments. If you pay first, you are deemed to have already committed to the purchase, and the grant will not be awarded. Risk Mitigation Pillar: This rule ensures that the grant actually influences the SME’s decision to improve productivity. Evidence Pillar: During the claim phase, auditors will check the dates on your quotation, contract, invoice, and bank statement. If any payment date or signature precedes the application date, the claim will be rejected, leaving the business to bear the full cost of the software.
Safe Implementation Path: To protect your funding, ensure your internal finance teams in areas like Tanjong Pagar or Subang Jaya are aware of this timing. Do not let vendor urgency lead to early payments. While this guide provides process clarity and is not financial advice, keeping a strict timeline of your BGP submission and subsequent LOF acceptance is a core requirement for grant success. This level of discipline ensures your digital transformation remains financially supported by Enterprise Singapore, providing peace of mind for HQs in Marina Bay and operationally sound workflows for teams across the island.
Transitioning to a new payroll system requires careful timing to protect your grant eligibility. We provide the checklist needed to maintain a compliant PSG application timeline.
Choosing PSG Payroll Software: Buyer Evaluation Criteria
When selecting a pre-approved payroll solution, SMEs should look beyond the grant discount and evaluate the software’s long-term fit. A neutral evaluation framework includes assessing the system’s ability to handle complex payroll logic such as Overtime (OT), proration for mid-month joiners, and varied allowance types while maintaining an automated audit trail for MOM compliance. Furthermore, check if the vendor is listed on the IRAS AIS payroll software list for YA2026 to ensure seamless year-end reporting. Good software should also integrate with major banks for GIRO file uploads and provide a self-service portal for employees to view payslips and apply for leave, further boosting productivity.
Still have questions about standardising your PSG application? If you are struggling with choosing a package scope, setting up CorpPass roles, or understanding the required evidence for claims, we invite you to review your grant readiness checklist. Success in adopting digital HRMS depends on choosing a system that survives employee turnover and keeps your records audit-ready for statutory bodies like the CPF Board and IRAS. We help employers across the region from Woodlands and Tampines to Jurong professionalise their administration through better software selection and process governance. By reclaiming your leadership time, you focus on business growth while your PSG-supported software handles the statutory mechanics across Singapore.
Our guide provides the operational clarity needed to protect your PSG application. We help you build a resilient, audit-ready administrative foundation that delivers measurable efficiency year-on-year.
FAQ: PSG Grant for Payroll Software
What is the PSG grant?
Who is eligible?
Can I pay first?
What is pre-approved?
How long is approval?
Required documents?
What is unsupportable?
Common rejections?
Claim submission?
PSG Application Readiness Check (2026)
Evaluate your eligibility and internal readiness for the BGP application workflow.
Audit Complete
Grant Readiness Status:
Use this readiness check to identify where “application risk” is draining your internal resources. WhatsApp us to discuss a formal PSG checklist review.
Why Professionalise Your PSG Application Strategy?
Aligning your internal processes with the PSG grant requirements ensures that administrative friction doesn’t lead to funding rejection as you digitise your business. By establishing a clear application checklist, you transition from reactive “manual payroll” to a strategic digital engine that supports growth across Singapore. Every layer of our framework focuses on eligibility verification, BGP-compliant documentation, and the redirection of leadership time to high-value talent activities. This disciplined approach ensures your organization remains audit-ready and operationally resilient across the island, from Paya Lebar and Jurong to Raffles Place and Woodlands.
| Evaluation Layer | Ineligible / Risky Model | PSG Ready Blueprint |
|---|---|---|
| Solution Selection | Non-directory software; custom non-vetted builds. | IMDA Pre-approved package listed in directory. |
| Payment Timeline | Payment or signature before BGP submission. | Application first; payment only after LOF. |
| CorpPass Setup | No defined Preparer or Acceptor roles assigned. | Correct roles ready for LOF acceptance. |
| Statutory Alignment | Manual CPF files; no IRAS AIS integration. | Automated CPF and IRAS-ready reporting. |
| Claim Readiness | Missing quotation or bank payment evidence. | Full Evidence Pack: Invoice + Bank Proof + Usage. |
Last verified on official portals: January 2026. This comparison is for educational purposes only.
Request Your PSG Application Checklist Review
Reclaiming your internal focus is the ultimate outcome of a successful PSG payroll software implementation. PET Payroll Outsourcing helps businesses transition from fragmented manual workflows to a predictable, grant-supported delivery model that protects your scaling efforts across Singapore. We invite you to review your PSG readiness results and identify where shareholding documentation, CorpPass roles, or package scope gaps are draining your productivity. Whether you are managing complex OT in Raffles Place or high-volume statutory submissions in Jurong, we are here to support your operational stability. Contact us today to discuss your audit results and professionalise your digital HR administration.
