Gig economy demands new payroll strategy

The rising number of gig workers in Singapore may lead to additional challenges for payroll management.

Large firms will not only need to strike a balance between contracting and permanent hires, they will also have to consider the ongoing changes taking place in employment legislation and regulation in Singapore.

Even firms in more traditional sectors such as banking and finance have been impacted by the gig economy. The rise of fintech, for example, has led to an increase in the supply of contracting roles in areas such as software and app development.

With the gig economy becoming a common feature of Singapore’s employment landscape, the government has set up a tripartite workgroup to study the concerns faced by contracting workers – including that of CPF benefits and remuneration.

Such concerns will be considered and a tripartite workgroup at NTUC will release recommendations in the coming months.

Additionally, MOM is currently reviewing the Employment Act. Employers thus have to keep an ear out for possible changes in the near future.

For companies that outsource their payroll services, such external factors may be handled by service providers.

However, HR would still need to ensure that the provider aligns with internal standards and processes – this is especially for firms in highly regulated sectors such as finance.

The Monetary Authority of Singapore and Association of Banks in Singapore have laid guidelines which require outsourced service providers working with financial institutions to maintain the same level of governance, rigour and consistency as the organisation themselves.

TMF Singapore, a service provider, understands the need to maintain such high standards in Singapore’s market, and was one of the first payroll service providers in Singapore to receive the Outsourced Service Provider Audit Report (OSPAR) attestation for payroll.

Managing director of TMF Singapore, Kim Leng Siaw, said that the OSPAR attestation removes the audit and liability burden that financial institutions may face, as TMF complies with the latest MAS outsourcing guidelines.

The attestation also ensures the integrity and effectiveness of TMF’s internal controls for payroll services, Siaw said.

Click here to read the latest Annual Global Payroll Survey 2017 by TMF Group