The Hidden Cost of Work in Singapore
A new study by global financial platform Airwallex reveals a hidden financial burden facing Singapore’s workforce.
Many employees spend more than S$20,000 a year on work-related costs before being reimbursed. The findings highlight growing frustration with outdated expense processes and rising calls for corporate reform.
According to the study, nearly two-thirds of Singaporean employees spend up to S$5,000 annually on business-related costs out of pocket. Another 23 percent spend as much as S$15,000, and 5 percent exceed S$20,000 each year.
The hospitality and leisure sector leads with the highest out-of-pocket spending – 15 percent of workers in the industry face expenses above S$20,000 – followed by manufacturing (13 percent) and education (8 percent).
Long Waits and Mounting Frustration
The issue is not just how much employees are spending, but how long they must wait to be reimbursed.
Nearly one in five workers (19 percent) wait between three and four weeks to get their money back, and 8 percent wait even longer. Most employees believe payments should be made within four to five business days, yet only 6 percent are reimbursed on the same day.
«There’s a clear gap between what employees expect and what they experience,» the report notes, underscoring a systemic issue in expense management across industries.
Personal Finances Under Pressure
The financial toll of reimbursement delays is palpable. Two-fifths (41 percent) of workers report financial stress as a result of slow repayments, with younger employees (aged 18–34) hit the hardest. Alarmingly, 28 percent have had to dip into personal savings to cover business costs, and 52 percent rely on credit cards, risking interest charges and debt.
The strain is changing workplace behaviour too – 12 percent have skipped company events to avoid upfront costs, while 7 percent say they have even quit a job because of poor reimbursement processes.
Call for Change
There is a strong consensus among employees for modern solutions. A striking 85 percent of respondents believe that company corporate cards would help alleviate reimbursement concerns by reducing out-of-pocket spending and financial stress.
As firms grapple with talent retention and economic uncertainty, experts say improving expense management is no longer optional – it’s essential for maintaining employee well-being and satisfaction.
Simplifying Business, Empowering Employees
«We’re focused on helping businesses remove unnecessary friction from day-to-day financial operations,» said Lionel Tan, Director of Account Management, SME & Growth at Airwallex.
«By simplifying expense management, we’re easing the pressure on employees who would otherwise be out of pocket, while giving businesses greater visibility and control over company spend,» he added.
Airwallex’s tools – including instant reimbursements, real-time spend controls, and integrations with accounting platforms – are designed to help companies operate more efficiently, both at home and abroad.
Growing Need for Financial Well-Being
As financial well-being becomes an increasingly critical factor in employee retention and workplace morale, adopting smarter, digital-first tools like those offered by Airwallex could mark a turning point.
For Singapore’s workforce, where thousands still pay to work, technology may finally offer the transparency, speed, and fairness they’ve been waiting for.
