As December rolls in, HR teams across Singapore know one thing for sure: year-end payroll is coming and it waits for no one. Between CPF adjustments, tax submissions, leave cut-offs, and salary reviews, this is the period where even the most seasoned HR professionals feel the pressure. But with the right preparation, year-end payroll doesn’t have to be a mad rush.
Here’s what every Singapore HR team must update before closing the year.
Update All Employee Information
Let’s start with the basics — because outdated employee records are one of the biggest causes of payroll errors.
Before processing the final payroll of the year, HR teams should reconfirm:
- Latest residential addresses
- NRIC/FIN expiry or renewals
- Updated bank account details
- Job title or grade changes
- Work pass status
- Resigned or transferred employees
Why this matters? Incorrect data = CPF mismatches, IRAS filing errors, and payment failures. And those are troubles no one wants to start a new year.
Finalize All Overtime, Allowances & Claims
Year-end is when pending claims stack up. Employees often rush to submit their transport, meal, or medical claims before the cut-off.
Make sure to:
- Approve all pending claims
- Validate overtime hours, especially for shift-based roles
- Confirm any project allowances, performance-based pay, or ad-hoc payouts
This ensures the December payroll reflects all entitled payments and prevents disputes in January.
Check Remaining Annual Leave & Encashment Rules
Singapore employers have different annual leave policies — carry-forward, encashment, or forfeiture. Whatever your policy is, December is the time to enforce it.
HR teams must:
- Remind staff to clear expiring leave
- Process leave encashment where required
- Update balances in the system
- Ensure leave taken during the holidays is logged correctly
Nothing derails payroll faster than missing leave deductions or wrong encashment amounts.
Confirm CPF, SDL & Other Statutory Contributions
Year-end is also compliance season, so it’s crucial to double-check your statutory contributions.
Verify:
- CPF contribution rates
- Wage ceilings (Ordinary Wage + Additional Wage)
- SDL contributions
- Insurable income for WICA and other insurance-related components
December is typically when employees receive bonuses, meaning Additional Wage (AW) limits come into play. Exceeding the AW ceiling leads to CPF miscalculations, a common year-end trap.
Prepare IRAS Submissions (IR8A, IR8S, Appendix 8A/8B)
Even though IRAS submission happens in early 2026, HR needs to prepare the data now.
Check that you are ready for:
- Auto-Inclusion Scheme (AIS) file generation
- Employee taxable benefits updates
- Accurate reporting of bonuses and commissions
- Correct classification of allowances
Doing these ahead means no last-minute scramble when tax season kicks in.
Update Salary Adjustments, Promotions & Renewals for 2026
Year-end is also planning season.
HR should confirm:
- Approved salary increments
- Upcoming promotions
- Contract renewals
- New allowances or role-based adjustments
This ensures that the January 2026 payroll starts clean, with no missing salary updates.
Ensure Your HR & Payroll System Is Updated and Synced
If you’re using multiple HR tools (attendance, claims, payroll, leave management), make sure everything is synced before running the final payroll.
Incomplete syncing = wrong pay, wrong deductions, wrong CPF.
This is also a good time to ask:
“Is my current payroll system ready for 2026, or will it slow me down again next year?”
How HRMLabs Helps Singapore HR Teams Close the Year Smoothly
Instead of juggling spreadsheets, emails, and manual approvals, HRMLabs helps Singapore businesses automate their entire year-end payroll process.
With HRMLabs, you get:
- Automatic CPF, IRAS, SDL calculations
- Instant syncing between attendance, leave, and payroll
- AIS-ready tax files
- Auto-updated employee records
- Accurate AW calculations for bonuses
- Secure cloud backup and audit trails
And the best part?
You don’t need to wait for a PSG grant. HRMLabs is already affordable, saves time, and gets your business 2026-ready faster without paperwork delays.
Final Thoughts
Year-end payroll doesn’t have to be stressful. With proper updates, early checks, and the right HR technology, Singapore HR teams can close the year confidently and step into 2026 fully prepared.
