Should Your Organisation Issue Electronic Payslips?
2 Jul 2020
Technology today seems to be disrupting numerous work processes in the organisation, from automating administrative work to predictive analytics. Human resources (HR) has also been impacted by technology in numerous ways. One of these ways is the issuance of payslips.
Traditionally, hardcopies of payslips have been issued to employees. Today, with the advancement of technology and the need to keep up with the digital age, should organisations issue electronic payslips to employees?
The answer is yes!
The first question you might ask is if electronic payslips are allowed in Singapore. According to the Singapore Employment Act, payslips can be issued in either softcopy or hardcopy (including handwritten). The only thing to note about issuing payslips is that all issued payslips must include a list of salary components (where applicable) according to the requirements as stated in the Employment Act.
The benefits of electronic payslips are plentiful. Savings in time spent on administrative work as well as paper and printing cost are just some of the benefits of switching to digital payslips. At the same time, digital payslips mean that it can be easily accessed with an internet connection, making it easier for employees who are working remotely to receive their monthly statements.
Another plus point about electronic payslips is that it comes with privacy and security advantages, particularly when data leaks are rampant in today’s digital age. A payslip wrongly mailed to another employees can seriously compromise the employee’s personal and confidential information. With digital payslips, these issues can be mitigated by implementing security measures such as password-protecting the online statements or implementing multi-factor authentication.
Electronic payslips certainly come with a plethora of benefits both to the HR department as well as to employees. To ensure that both HR and employees are well prepared for this digital switch, here are some key tips to bear in mind:
- Ensure that HR validation each payslip statements before releasing it to employees. While an automated payroll software can easily generated data to be printed out, it might be picking up the wrong data – something which only the HR department will know.
- Educate, educate, educate! And this is not limited to the HR department but also employees as well. After all, if this is everyone’s first time receiving a digital payslip, there are bound to be questions and queries. Ensure that there is a platform – be it online, physical or both – for the HR department to answer any questions pertaining to employees’ accessing their online payslip.
- Use an easy and readable format such as PDF statements. That way, the file can be password-protected, preventing employees from editing or manipulating their payslips.
Ready to make the switch to electronic payslips? Start your payroll journey with ePayslip today!