2025 Singapore research: Why outdated reimbursement processes are damaging employee trust

Key takeaways

• Employees in Singapore are covering thousands of dollars in out-of-pocket expenses, affecting morale, retention, and productivity.

• 77% say their company’s current expense process doesn’t meet their needs.

• With Airwallex, businesses can replace reimbursement delays with real-time payments, automated spend controls, and multi-currency corporate cards.

Many businesses in Singapore still require employees to pay for work expenses out of their own pockets. For many employees, handling work-related expenses isn’t just paperwork, it can be a quiet financial burden that affects employee well-being and creates unnecessary stress.

Whether it’s a last-minute flight ticket to a crucial client meeting, a hotel stay after a long day of travel, or picking up the tab for a business lunch, these costs can add up. And even though reimbursement is supposed to come through quickly, it’s often slow, leaving employees stressed and out of pocket.

Traditional expense systems just don’t cut it anymore. What should be a simple process is often a source of friction that undermines trust in employers. 

For employers, this trust gap can undermine team morale, reduce engagement, and even lead to staff turnover. On top of that, inefficient reimbursement processes can create unnecessary administrative burdens, introduce compliance risks, and make it harder to track, control, and forecast company spending.

That’s why we decided to dive deep into the state of expense reimbursement in Singapore.

In this article, we’ll share our findings, highlight the most common expense challenges, and discuss how smarter spend management solutions, like those offered by Airwallex, can help businesses tackle this growing issue.

About the research

We surveyed 500 Singaporean employees in 2025 to understand how outdated processes affect them – from the financial burden of covering costs upfront to the knock-on effects on productivity and morale.

What are the most common types of employee expenses?

Employee expenses are business-related costs accrued as part of an employee's role. The Inland Revenue Authority of Singapore (IRAS) considers expenses to be anything incurred wholly and exclusively in the performance of the duties of the employment. Businesses often outline an expense policy that explains to employees what they can and cannot claim. This helps them be tax-compliant but also minimises the risk of expense claims being rejected.

Of those surveyed, over a third (41%) of the workers admitted they are expected to cover business-related expenses out of their own pocket before being reimbursed. Senior management (23%) were the most likely to face this, followed by senior executives (20%) and middle managers (20%). Even employees attending training or events (15%) reported having to pay expenses upfront.

When asked what types of expenses they most often cover out of their own pockets, travel-related costs (57%) topped the list, followed by costs for entertaining clients (42%). Over two in five (41%) of the surveyed said they personally pay for office equipment and supplies, while others pointed to costs like accommodation (39%) and company events and team social outings (36%).

How much are employees spending on expenses?

On average, each employee in Singapore spends S$6,496 per year on work-related expenses, or about S$541 per month. This rises to almost S$7,000 per year for 19% of those who work in micro and small businesses.

According to the data, over half (56%) of respondents spend up to S$5,000 annually on business-related costs out of pocket and a further 23% report spending up to S$15,000, while 5% say they exceed S$20,000 in annual expenses before being paid back.

Among all the service sectors, the hospitality and leisure sector leads in out-of-pocket spending, with 15% of employees in the industry reporting expenses over S$20,000. This was followed by manufacturing (13%) and education (8%).

What challenges are there for employees when it comes to expenses and reimbursement?

We found 7 key issues employees face when dealing with expenses and reimbursement.

1. Many employees face financial strain while waiting to be reimbursed

Waiting for expenses to be paid back causes real financial strain. 41% of surveyed people have faced financial difficulties waiting to be reimbursed, which increases to 56% for those who have to pay for their expenses on a weekly basis.

The frequency of financial pressure due to expenses cannot be understated. 20% said they've faced financial difficulty due to work event expenses on more than one occasion and 28% of employees admitted to dipping into their personal savings to help pay for their workplace expenses.

Younger workers are also affected by the impact of work event expenses, with 55% of participants aged between 18 and 27 also experiencing financial strain from this.

Working at an established company doesn’t always mean smoother processes. 43% of respondents at large firms said they faced financial difficulty when waiting for their reimbursements, with 16% accruing as much as S$2,999 in annual expenses.

2. Reimbursement delays are the norm, not the exception

When it comes to reimbursing expenses, there's a disconnect between expectations and reality. 

43% of people surveyed agreed their company waits too long to pay back the expenses, with only 6% saying they are reimbursed on the same day. Almost a fifth of respondents (19%) said it takes between three and four weeks to receive their money back. 

While for some (22%), the expenses are usually paid back within two weeks, 8% claimed that they have had to wait over a month to be reimbursed. 

On the other hand, almost 24% are reimbursed within four to five working days, but just 6% receive payment on the same working day. 

25% of employees expect to be reimbursed within six to 10 working days, the research found.

3. Credit cards are used to cover expenses

When it comes to how employees cover their expenses, 52% of surveyed employees stated that they use their credit cards to pay for their expenses, compared to 7% who had cash available to cover costs.

Using a credit card to pay for expenses can be risky, however. When reimbursements are delayed, credit card interest and late fees can leave employees further out of pocket, even once the money is returned.

4. Employees are using savings and overdrafts to cover business costs

Dipping into savings has become a routine affair to cover ‌expenses for even those working in large businesses (32%). This is also seen in the 18–27 age category, with 27% taking money out of their savings and 12% using their overdraft.

However, for employees without access to an overdraft or available savings, help is sought from friends and family, with 13% of the surveyed participants having to ask others for financial support to cover their expense overheads.

5. Expense policies are forcing people to skip events or even quit

When companies require employees to pay first and claim later, some choose to avoid the situation entirely. 12% of people said they have missed out on work events to avoid paying for expenses upfront. And 7% said it caused them to leave their jobs.

6. Anxiety is rising, especially in smaller businesses

For employees who pay expenses two to three times ‌a month, 24% said they feel anxious while waiting to be reimbursed. This figure stands at 53% for those working in micro and small businesses, with 17% also feeling frustrated while waiting.

7. Expense management falls short of meeting employee needs in most companies 

Participants think that better methods are needed to pay employees back. 77% of people said there needs to be a better way to get their money reimbursed, with 85% saying having company corporate cards would ease any worries around expense reimbursements.

How Airwallex offers a solution to solve the reimbursement pain for both employees and employers

If your team is still paying for business expenses out of pocket, it’s time to rethink the process. Airwallex gives you a better way. You can replace clunky reimbursements with corporate cards, spend controls, and full real-time visibility.

Take the stress out of company spending with Airwallex

Cards that work the way your team does

Issue virtual or physical cards in seconds so employees can pay for what they need without dipping into their own pockets. They remove the need for reimbursement and give your finance team full visibility over every cent spent.

Faster reimbursements when you need them

When reimbursements are unavoidable, Airwallex makes them quick and hassle-free. Paying employees back promptly eases stress and financial strain, while helping your business save time on admin and improve cash-flow forecasting.

Automated expense management

Say goodbye to end-of-month chaos. Airwallex connects directly with accounting software such as Xero, QuickBooks, NetSuite, and more. This eliminates the manual labour of tracking, approving, and reconciling expenses, saving your business significant time and effort at month-end.

Spend controls that keep you in charge

Corporate Cards don’t have to mean losing control. With Airwallex, you set the rules – by person, team, or spend category. Create cards in seconds, freeze them instantly, and track every transaction in real time.

Built-in guardrails give you the visibility and control to manage spend without slowing your team down.

Spend like a local, anywhere

For global companies, Airwallex Business Accounts offer competitive exchange rates and a range of currency options – a perfect fit for employees with overseas expenses. Our cards are multi-currency, which means employees can spend in the currency of the country they’re in without having foreign exchange charges added to their transactions. The spend pulls directly from the corresponding currency account, or auto-converts at the interbank rate where the currency is not held.

No hidden international transaction fees also mean more transparency on how much is being paid out at any given time.

Airwallex removes the stress from expenses. No more chasing receipts. No more delayed reimbursements. Just a smarter way to manage company money – for you and your employees.

Methodology

An online survey of 500 Singaporean workers who have paid for a business expense using their own money in the last year was conducted between 25^th July to 31^st July 2025 by Opinium Research. Data was collected adhering to established guidelines to ensure ethical and accurate data collection.