The Productivity Solutions Grant (PSG) is a vital government initiative in Singapore, designed to help SMEs (small and medium-sized enterprises) adopt IT solutions and equipment that enhance their business processes and improve productivity. The PSG offers financial support to businesses looking to integrate digital solutions into their operations. For companies seeking to streamline payroll administration, this grant provides significant assistance in automating payroll systems, reducing errors, and increasing operational efficiency.
Understanding the Productivity Solutions Grant (PSG)
The PSG grant helps local SMEs adopt pre-approved solutions to improve their business operations. It covers up to 50% of the qualifying costs for solutions and equipment. The annual grant cap for businesses is S$30,000, subject to eligibility. The initiative is supported by Enterprise Singapore (ESG) and aims to help SMEs in Singapore improve their productivity by adopting relevant and effective digital solutions.
The grant application is processed via the Business Grants Portal (BGP), a government portal where SMEs can submit their PSG application and access a list of supportable solutions tailored to their business needs. The PSG can support the adoption of digital marketing solutions, accounting software, and other pre-approved solutions that best match the business's requirements.
How PSG Supports Payroll Administration
One of the most impactful areas of business operations that PSG can assist with is payroll administration. Payroll software and HR management systems are common solutions that can be funded under the PSG. These tools help automate manual payroll processes, reducing errors and ensuring timely, accurate salary disbursements. Below are the types of systems eligible for PSG support:
Payroll Software: Automates calculations, tax computations, and generates payslips. This reduces manual errors and compliance risks.
HR Management Systems: Platforms that integrate payroll with leave management, attendance tracking, and other HR functions.
Data Analytics Tools: Provides insights into payroll data, allowing businesses to track labor costs, optimize payroll processes, and improve decision-making.
By automating payroll, businesses can enhance business processes and focus on strategic goals, freeing up valuable time and resources.
Eligibility Criteria for PSG Grant
To qualify for the PSG, businesses must meet the following eligibility criteria:
SMEs in Singapore: Must be registered and operating in Singapore.
Local Ownership: At least 30% local shareholding.
Annual Sales Turnover: The company’s annual sales turnover must not exceed S$100 million, and the group annual sales turnover should also meet the same criteria.
Employee Count: The company must have fewer than 200 employees.
Pre-approved Solutions: The solutions must be pre-approved by Enterprise Singapore and the business must apply via Corppass to access and submit the application.
As part of the SFEC-supported programmes, companies can benefit from the SkillsFuture Enterprise Credit (SFEC) to further cover up to S$7,000 on the qualifying of relevant solutions and equipment.
How to Apply for the PSG in Singapore
The PSG application process is simple and straightforward, but businesses must follow these steps:
Identify Relevant Solutions: Businesses need to select from the list of supportable solutions that align with their payroll needs. These solutions are pre-approved by ESG.
Get a Quotation: Businesses should reach out to a pre-approved vendor for a quotation on the solution they wish to purchase.
Submit Your Application: Apply for the grant through the Business Grants Portal (BGP). Businesses will need to provide the required documentation, including the quotation from the vendor.
Grant Approval: If the application is successful, businesses will receive a letter of offer, detailing the approved amount and conditions of the grant.
Claim Reimbursement: Once the solution is purchased and implemented, businesses can submit a claim for reimbursement of the approved amount through the BGP.
The application process typically takes around six weeks, and businesses can track the status of their application via the portal. In case an application is unsuccessful, businesses can refer to the frequently asked questions (FAQ) section on the portal for additional support.
Benefits of Adopting Payroll Solutions with PSG Support
There are multiple benefits when adopting payroll solutions through the PSG programme:
Improved Productivity: Automating payroll tasks helps to streamline processes, reducing the manual workload for HR departments.
Cost Efficiency: By automating payroll and reducing human error, businesses can save time and reduce operational costs.
Regulatory Compliance: The use of automated systems ensures adherence to labor laws and tax regulations, minimizing the risk of non-compliance.
Time Savings: HR personnel can focus on higher-value tasks, such as employee engagement and business strategy, rather than spending time on manual payroll calculations.
By leveraging PSG support, companies can modernize their payroll administration, contributing to a more efficient, productive, and compliant business environment.
Conclusion
The PSG is an excellent opportunity for SMEs in Singapore to upgrade their business processes and automate key functions such as payroll administration. With funding support covering up to 50% of eligible costs, this initiative helps businesses go digital and improve efficiency while staying competitive. If you are an SME looking to streamline your payroll system to improve productivity and enhance your digital transformation, check out our pre-approved solutions or contact us straightaway.
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