The upcoming budget and tax season is a strategic time for Small and Medium Businesses (SMEs) in Singapore to plan their investments. In an economy driven by efficiency, adopting digital tools is no longer optional. The Productivity Solutions Grant (PSG) is your primary grant assistance for this transformation, covering a significant portion of the cost for adopting crucial HR solutions.
What is the Productivity Solutions Grant (PSG)?
The Productivity Solutions Grant (PSG) is a government initiative that helps Singaporean SMEs improve productivity and automate essential processes.
The primary benefit of the PSG grant is financial: it offers up to 50% funding support for eligible costs incurred when adopting pre-approved IT solutions. With a grant cap of S$30,000 per financial year, the PSG makes essential digital tools, including HR systems, accessible, allowing businesses to modernise their operations without significant upfront capital risk.
Who Qualifies for the PSG Grant?
To access this vital funding, your company must meet the following eligibility criteria:
- The business entity must be registered and operating in Singapore.
- The company must have at least 30% local shareholding.
- The group’s annual sales turnover must not exceed S$100 million, or the group’s employment size must not exceed 200 employees.
- The purchased IT solution must be used in Singapore.
- You must not have signed any contract or made any payment to the vendor before the grant application is approved.
Choosing the Right Vendor for Your Business
Source: suchaadobe3 on Freepik
While the PSG grant simplifies the financial decision, selecting the right vendor is crucial for long-term success. Here are some criteria to consider when evaluating vendors:
- Pre-approved status: Ensure the vendor is officially pre-approved for the specific solution you require. This confirms the solution meets established government standards for quality and effectiveness.
- Features and scalability: Look for a HR automation software that is comprehensive and scalable. Your system should grow with you, from a local SME to a multinational enterprise.
- Support model: Verify the quality of local in-country support and training, which is essential to ensuring successful user adoption and long-term functionality.
The Two HR Solutions You Can Get With PSG Grant
BIPO is a pre-approved vendor under the IMDA SMEs Go Digital programme, offering two powerful solutions tailored to address different levels of HR complexity:
BIPO’s HRMS is the ideal standalone solution for businesses that want to maintain in-house control over their monthly payroll while automating core workflows.
- Benefit: This HRMS system instantly boosts internal HR efficiency by automating functions such as the personnel hub, leave management, time and attendance, and claims.
- Suitable for: SMEs in Singapore focused on internal digitisation, reducing paperwork, and deploying robust employee self-service features.
This package combines BIPO’s HR solution with full-service payroll management delivered by experts.
- Benefit: Removes the administrative work of managing monthly payroll outsourcing in Singapore. It ensures a compliant, accurate payroll run every month, guaranteeing timely payments and statutory submissions (CPF, IRAS).
- Suitable for: SMEs that are overwhelmed with the monthly payroll cycle, require compliance, and prefer a streamlined approach to this complex function. This solution also provides a seamless pathway to multi-country payroll and global payroll services as your business grows.
Streamline Your Planning for 2026 with BIPO
Leveraging the PSG grant is more than just funding support; it’s a non-negotiable step toward modernising your operations for 2026. BIPO provides the pre-approved solutions and expertise to ensure your investment pays off. Our status as a trusted vendor means you adopt a quality HR solution that automates everything from payroll to compliance.
Reach out to our team to explore your PSG grant options and position your business for success in the new year.
