Grants

PSG grant for HR and payroll software: what applies now

HR and payroll software was a common PSG purchase for Singapore SMEs. PSG has closed, and support for ready-made software now runs through the EDGE Grant. Here is how support works, how to check a vendor and what the software should handle.

Updated 13 October 2026

In short: PSG no longer funds new HR or payroll software. It closed to new applications at the end of September 2026. A ready-made HR or payroll package may now be supported under EDGE as a single-function digital solution, within a S$30,000 sub-cap. Check the package on SMEs Go Digital and apply before you pay.

The PSG grant no longer accepts new applications for HR or payroll software. Enterprise Singapore’s EDGE Grant page says PSG ceased on 29 September 2026, and new applications now go through the EDGE Grant, launched on 30 September 2026. A ready-made HR or payroll package may be supportable under EDGE as a single-function digital solution, or as part of an integrated system that includes human resources management. Confirm this for the specific package before you sign, and do not pay a deposit before you apply.

If you applied for PSG before 30 September 2026, your application continues under the original PSG rules. See the PSG grant guide for what happens to existing applications.

How EDGE support works for HR and payroll software

Support level

The EDGE FAQ gives up to 50% support for SMEs and up to 30% for non-SMEs on standard activities. Enterprise Singapore says levels vary by activity, so confirm the rate for your solution.

Sub-cap and annual cap

Single-function digital solutions, integrated enterprise systems and pre-scoped equipment share a sub-cap of up to S$30,000, within a S$100,000 annual cap per company. The cap year runs from 1 April to 31 March. Selected single-function solutions and integrated systems are limited to one application per UEN, so decide early whether HR and payroll is your priority over, say, accounting or POS.

Estimate support on a quote with our EDGE grant calculator.

Standalone package or integrated ERP

  • Single-function solution. A standalone HR or payroll package. Enterprise Singapore points businesses to IMDA’s SMEs Go Digital platform to browse these vendors.
  • Integrated ERP. A system with at least three functions from Enterprise Singapore’s list, such as human resources management, financial management and project management. A pre-approved vendor’s package takes about one week to process. Your own vendor takes about ten weeks.

How to check whether a vendor qualifies

  1. Search SMEs Go Digital for the vendor and package. Its package builder lets you adjust components such as staff numbers, implementation period and training.
  2. Confirm the activity on Enterprise Singapore’s EDGE pages or BizSG.
  3. Ask the vendor in writing:
    • Which EDGE activity does this package fall under?
    • How many employees and which modules does the supported package cover?
    • What is the subscription cost after the project period?
    • Is data migration from spreadsheets or the current system included?
    • What unique identifier, such as a licence number or user ID, will you provide?

Some vendors still advertise around PSG. That does not tell you whether a new EDGE application will be supported, so check the official sources.

What to look for in HR and payroll software

Payroll errors affect staff directly, so test the basics before anything else:

  • CPF calculation. Automatic contributions, with rate changes applied when the CPF Board updates them.
  • IRAS filing. IRAS says the Auto-Inclusion Scheme is mandatory for employers with five or more employees, among others. Check how the software prepares IR8A and related forms and submits them.
  • Foreign worker levy and self-help group contributions, if relevant to your workforce.
  • Bank payment files for the banks you use.
  • Leave and claims. Statutory leave types, approval workflows and claims that flow into payroll.
  • Attendance and shifts, if you run rosters or hourly staff.
  • Accounting connection. Whether payroll journals post to your accounting software.
  • Access controls. Salary data should be visible only to the people who need it, in line with Singapore’s PDPA.

Singapore-focused payroll products exist alongside regional HR suites. Talenox, for example, says on its Singapore site that it calculates CPF, generates IR8A forms with submission to IRAS through AIS, exports bank files for more than ten Singapore banks and integrates with Xero and QuickBooks Online. Check current features and pricing with each vendor, and check grant status on the official pages, not on vendor marketing.

Step-by-step application

  1. Get a quotation. Do not pay, start a paid plan or begin setup.
  2. Confirm the package and activity on SMEs Go Digital and Enterprise Singapore’s pages.
  3. Prepare documents. Requirements vary by activity. For Automation and Digitalisation, include a current tenancy agreement.
  4. Submit on the Business Grants Portal with a Corppass account holding the BGP Preparer or Acceptor role. Vendors cannot submit for you.
  5. Receive the Letter of Offer. Paying after submission but before approval may be supported if approved, at your own risk.
  6. Implement, run a parallel payroll and pay in full.
  7. Submit one final claim. Claims for single-function solutions open from 1 November 2026, and EDGE pays by reimbursement.

Common mistakes

  • Paying a deposit to lock in a price. It makes the application retrospective.
  • Skipping a parallel run. Run at least one payroll in both systems and compare before switching.
  • Buying HR modules you will not use. Start with payroll, leave and claims, then add more.
  • Changing vendor after approval. This is not allowed. You would need to terminate and reapply.
  • Assuming software replaces HR advice. Software runs the process. Policies and contracts still need expertise.

How FYAdvisers can help

FYAdvisers is a free, concierge-led matching service. If you would rather hand payroll to a specialist, a concierge can introduce one to five payroll outsourcing providers that fit. For policies, handbooks or HR set-up, we can introduce HR consultancies. Ask each provider how their work maps to EDGE, and confirm with Enterprise Singapore. Estimate support with the EDGE grant calculator.

Frequently asked questions

Is there still a PSG grant for HR software?

No new applications are accepted. Enterprise Singapore says PSG ceased on 29 September 2026 and no new application will be accepted after 30 September 2026. Applications submitted before then continue under the original PSG rules.

Does EDGE support HR and payroll software?

EDGE supports single-function digital solutions and integrated enterprise systems, and human resources management is one of the functions listed for integrated ERP. For a standalone HR or payroll package, check the vendor and package on IMDA's SMEs Go Digital platform and confirm the activity with Enterprise Singapore.

How much can I get under EDGE for payroll software?

Standard activities receive up to 50% support for SMEs and 30% for non-SMEs, subject to the activity page. Single-function solutions, integrated systems and pre-scoped equipment share a S$30,000 sub-cap within the S$100,000 annual cap.

Does payroll software need to handle IRAS AIS?

If your business must file under the Auto-Inclusion Scheme, it helps. IRAS says AIS is mandatory for employers with five or more employees, employers who received a notice to file electronically, and those already registered. Ask vendors how they prepare and submit IR8A data.

Should I outsource payroll instead of buying software?

It depends on headcount, complexity and who will run payroll each month. Outsourcing suits firms without an in-house HR or finance person. Software suits firms that want to run payroll themselves. Grant support should not be the deciding factor.