For years, the Productivity Solutions Grant (PSG) has been a reliable helping hand for Singapore SMEs. With up to 50% subsidies, it lowered the barriers to adopting digital solutions like HR and payroll software. For many, PSG was the nudge they needed to modernise.
But here’s the reality check: subsidies don’t last forever. When the PSG period ends, the real cost of your system shows up and for many businesses, it’s a painful surprise. Suddenly, that “affordable” HR and payroll system feels a lot heavier on the budget.
So the big question is: what happens when the grant ends? Do you continue paying full price, or do you rethink your payroll strategy altogether?
Why PSG Helped — But Isn’t the Whole Answer
There’s no denying PSG has made an impact. Thousands of SMEs were able to digitise processes, automate payroll, and simplify HR tasks. Without the grant, many might still be stuck in spreadsheets.
But while PSG gets you started, it doesn’t guarantee long-term sustainability. Here’s why:
- Sticker shock at renewal – Once subsidies expire, many SMEs are left paying 100% of a system they chose for its “discounted” price.
- Grant dependency – Businesses sometimes forget to evaluate whether the system is still worth the real cost.
- Short-term choices – With PSG in play, some companies select a vendor based on subsidy eligibility, not on long-term value or fit.
The result? SMEs feel trapped paying for systems that don’t match their budget or needs.
Time to Think Long-Term: Sustainability Over Subsidies
Instead of focusing only on how much PSG covers, forward-looking SMEs are now asking a smarter question: “Can my payroll system remain affordable, efficient, and scalable when I’m paying the full price?”
A sustainable payroll solution is one that works for your business beyond subsidies. That means it should:
- Provide real value at full cost — so you don’t feel overcharged once PSG ends.
- Grow with your business — flexible enough to support new hires, new locations, or new regulations without costly add-ons.
- Cut manual work — automation that reduces HR headaches and costly human errors.
- Ensure compliance — built-in features to keep you up to date with CPF, MOM regulations, and tax changes.
Think of it this way: a good payroll system pays for itself, with or without a grant.
HRMLabs: Better than PSG for SMEs
Here’s the good news: you don’t need to rely on PSG to get an affordable, efficient HR and payroll solution.
At HRMLabs, we’ve built our system to be sustainable from the start:
- Cheaper even without PSG – Our pricing is already competitive, so you won’t face price shock when subsidies end.
- Faster implementation – No weeks of waiting for grant approval. You can start running payroll right away.
- Easier to use long-term – Designed for Singapore compliance, automation, and scalability, so you stay efficient as your business grows.
That’s why we call it: Better than PSG.
Final Thoughts
The PSG grant has been a fantastic stepping stone, but it’s not a long-term safety net. At some point, every SME must face the full cost of their HR and payroll system. The key is choosing one that remains sustainable even when subsidies stop.
Instead of worrying about renewals or approvals, imagine having a payroll solution that’s affordable, reliable, and future-proof from day one. That’s the peace of mind HRMLabs delivers.
Discover why HRMLabs is Better than PSG and why it’s the smarter choice for Singapore SMEs.
