The PSG Grant for HRMS helps eligible Singapore SMEs reduce the cost of implementing HR software by providing up to 50% funding support.
If you’re still managing payroll, leave, attendance, and employee records manually, this guide explains how the scheme works, who qualifies, and how to apply in 2026.
There are a lot of other companies in Singapore that might be doing the same thing. After all, this approach is easy and inexpensive when the business is starting.
However, these practices will become more problematic for you than helpful when your company starts to expand and grow.
There will be payroll inaccuracies, absence tracking will be a challenge, and compliance will become difficult.
This is the very problem that the PSG hopes to address. Through this program, your company can implement an HR software solution without paying for its entire price tag.
What is PSG (in simple terms)?
PSG is a government initiative which is designed to support businesses in adopting digital tools that improve productivity. It is managed by Enterprise Singapore and it focuses on pre-approved and reliable solutions.
For HR, this has systems that can automate payroll, manage leave, track attendance, and store employee data safely.
One of the biggest advantages that you can get from this is the cost support. Currently, PSG covers up to 50% of the solution cost, with a funding cap of S$30,000 per company per year.
This means that businesses no longer need to delay upgrading their HR processes due to budget concerns.
Why Should You Digitise HR?
Let’s look at this from a day-to-day perspective.
If you’re handling HR manually, you are probably spending hours every week on repetitive tasks, calculating salaries, updating leave balances, checking attendance, and preparing reports.
An HRMS simplifies all of this.
With the right system in place, you can:
- Process payroll in minutes instead of hours
- Automatically calculate CPF contributions and taxes
- Allow employees to apply for leave without emails
- Access all employee information in one place
Who Can Apply for PSG?
You are eligible if:
- Your company is registered and operating in Singapore
- At least 30% of the business is owned by Singapore citizens or PRs
- Your company has no more than 200 employees OR annual revenue below S$100 million
- The solution will be used within Singapore
And most importantly:
You must apply before making any payment to the vendor.
This is one of the most common mistakes businesses make. Even if everything else is correct, paying early will make your application ineligible.
Step-by-Step: How to Apply for PSG HRMS
Though it may appear complex initially, after breaking it down, it turns out to be rather easy.
Step 1: Select an approved PSG HRMS Vendor
Select a vendor whose system is PSG approved. The system will have all the necessary features according to government standards.
Step 2: Quotation
Ask for a quotation from the chosen vendor. Make sure that it is in accordance with PSG standards as any deviation will result in complications.
Step 3: Documentation
Your documentation would generally include:
- Financial records (for past 3 years)
- Business description
- Quotation
Step 4: Apply via Business Grants Portal
Submit your application through the Business Grants Portal (businessgrants.gov.sg).
Step 5: Wait for approval
Approval usually takes around 4 to 6 weeks. During this time, avoid making any payments.
Step 6: Purchase and implement
Once approved, you can proceed with payment and start using the system.
Step 7: Submit your claim
After using the system for at least 30 days, submit your claim with invoice, payment proof, and usage evidence.
Step 8: Receive reimbursement
Once your claim is approved, the grant amount will be credited to your business.
How Much Can You Save?
Under the 2026 PSG scheme, eligible businesses can receive up to 50% funding support for qualifying HRMS solutions.
| Cost Breakdown | Amount (S$) |
| HRMS Cost | 10,000 |
| PSG Support (50%) | -5,000 |
| Your Cost | 5,000 |
So right away, your cost is cut in half.
But there’s another layer of savings many businesses don’t fully use.
Can I Combine PSG with SFEC?
Yes. Eligible businesses may combine PSG funding with SkillsFuture Enterprise Credit (SFEC), significantly reducing the overall cost of implementing an HRMS solution.
If your business is eligible for SkillsFuture Enterprise Credit (SFEC), you can reduce your cost even further.
SFEC provides additional support of up to 90% of the remaining cost, capped under a one-time credit of S$10,000.
Here’s how it works:
| Cost Breakdown | Amount (S$) |
| After PSG | 5,000 |
| SFEC Support | -4,500 |
| Final Cost | 500 |
This means a system worth S$10,000 could cost you as little as S$500.
This combination of PSG + SFEC is one of the most powerful ways to digitise your business affordably.
Common Mistakes to Avoid
Many businesses lose time or miss funding because of small errors.
Some common ones include:
- Paying before getting approval
- Using a non-approved vendor
- Submitting incorrect or incomplete documents
- Quotation not matching PSG requirements
Taking a little extra time to check everything can save weeks of delay.
Choosing the Right HRMS
Not all HR systems are built the same, so it’s important to choose carefully.
Look for a solution that:
- Handles Singapore payroll and compliance correctly
- Is easy for both HR and employees to use
- Offers reliable local support
- Can grow with your business
If you’re evaluating PSG-approved HRMS solutions, PeopleCentral is one option worth considering. It combines payroll, leave, attendance, claims, and compliance management in a single platform while supporting PSG funding for eligible businesses.
Ready to Digitise Your HR?
PeopleCentral is a PSG pre-approved HRMS designed for Singapore businesses. Eligible SMEs may receive up to 50% funding support through the PSG scheme. Book a free demo to see how the platform works and get guidance on the application process.