For many SMEs in Singapore, the Productivity Solutions Grant (PSG) was a game changer. It made digitalising HR and payroll systems easier and more affordable, giving businesses a much-needed push toward efficiency. But here’s the catch; PSG support only lasts for one year.
Now, as that subsidy period comes to an end, many SMEs are facing an unpleasant surprise: the full cost of their HR and payroll vendor. And for some, that cost is far higher than expected.
Welcome to what we call the Payroll Price Shock.
The PSG Reality Check
The PSG scheme was designed to help SMEs kickstart digital adoption. But what many businesses didn’t fully realise is that:
- The grant only covers up to 50% of the solution cost, and only for the first year.
- After that, you’ll need to pay the full vendor price.
- Renewal costs are often much higher than what SMEs initially budgeted for.
So instead of easing long-term digitalization, some SMEs now find themselves locked into an expensive system they didn’t even choose for its long-term fit, but just because it was PSG-approved.
Common Pain Points After PSG Ends
When PSG expires, many SMEs encounter the same challenges:
- Sudden Price Increase – Renewal fees jump overnight, doubling the cost.
- Vendor Lock-In – Stuck with a solution that may not actually suit your business.
- Overpaying for Features – Paying for bells and whistles you don’t use.
- Switching Anxiety – Fear that moving to a new system will be costly or disruptive.
It’s a frustrating situation, but the good news is, you’re not trapped.
The Good News: You Have Options
Just because your PSG period has ended doesn’t mean you’re stuck with high vendor fees. In fact, this is the perfect time to re-evaluate your HR and payroll needs.
Instead of shouldering unnecessary costs, you can switch to a solution that’s more affordable, more scalable, and better aligned with your business goals.
Why HRMLabs Is the Smarter Alternative
At HRMLabs, we believe that SMEs deserve solutions that are both powerful and affordable — without relying on short-term subsidies. Here’s why many businesses in Singapore switch to us after PSG:
- More affordable than many PSG vendors — even without subsidiesTransparent pricing with no nasty surprises when the year ends
- Easy migration support to make switching smooth and stress-free
- Scalable features that grow with your business
- Proven ROI — saving time, reducing errors, and ensuring compliance year-round
In short: with HRMLabs, you don’t just avoid Payroll Price Shock — you gain a reliable partner for the long run.
Don’t Let PSG Expiry Break Your Bank
Your PSG grant may be ending, but that doesn’t mean you should pay more than you need to. Payroll and HR are long-term needs, and your software should deliver long-term value.
HRMLabs offers a cost-effective, transparent, and future-ready solution that helps SMEs stay compliant, efficient, and productive, without the hidden costs.
Ready to avoid the payroll price shock? Talk to us today and discover why HRMLabs is the smarter choice for SMEs in Singapore.
