Recent mergers happening in the payroll outsourcing industry have left many clients staring at a blind alley. In the global payroll versus local payroll debate, always opt for local payroll. When global payroll providers merge with other entities, their clients are also inducted into the global payroll system. These systems have a standardised approach to payroll outsourcing and may cause multiple complexities for clients hosting their business in countries like Malaysia and Singapore. 

If your existing payroll partner has merged with a global payroll provider, you must consider your options before signing a long-term pact. Given corporate accountability to employee management and the current spike in prices, global payroll providers are likely to make your life a bit difficult because of the following reasons -

Higher Premiums & Consolidated Costs
Like their markets in North America and Europe, global payroll companies tend to run their service costs in USD, thus overburdening clients operating in Asian markets with higher expenses. This can be avoided especially when similar services are obtainable for a lesser price. Customised pricing is not a common feature with these payroll giants who also levy taxes and additional charges for every service.

The Minimum Headcount Trap
Most global payroll providers set a minimum headcount while signing a payroll outsourcing contract. In a manufacturing and customer services hub like ASEAN, companies only deploy a handful of staff to take care of their business needs. Outsourcing is a widely-adopted model of operation at play in this region – payroll outsourcing being top of the list . No offshore company wants to waste resources or time on payroll processing when it can be comprehensively handled by an external firm.

Knots in Local Compliance
All countries in South East Asia have their versions of taxes and provident fund allocations. Regulatory compliance depends on whether the employee is a resident or non-resident and the social security benefits they are eligible for. If your global payroll provider also specialises in HR services like employee mobility, then they will need to have extensive expertise in entry visas that are permissible for short-term and long-term employment contracts. With global payroll providers, seamless access to local compliance involves multiple hurdles.

User Privacy
Countries like Malaysia and Singapore have their own versions of GDPA. Known as the Personal Data Protection Act (PDPA), this regulation pushes industry-wise practices that need to be adhered to while extracting, using, and storing personal data. In the financial services segment, this applies to handling employee bank accounts, financial transactions, contact details or any other sensitive information that may fall under the purview of PDPA.

Having a global payroll outsourcing partner negotiate all these criteria maybe challenging given their lack of expertise in local regulations, financial regulatory laws and Income Tax requirements. Customer service in Malaysia & Singapore addresses a host of local concerns which global payroll providers fail to do most of the time. 

Choosing a local payroll outsourcing solutions partner will help you integrate your payroll information to a customised payroll software unlike the single-technology framework adopted by global payroll companies. Local payroll companies are structured to meet payroll demands hyper-locally even for MNC ventures with low headcounts and variable pay cycles. 

The process, pricing and partnership revolve around transparent policies without any heavy premiums that would otherwise crucify clients. Payroll processes are priced according to the services clients opt for, providing considerable savings for companies in the long-run. They also have a very Asian-centric approach among client workforce so that satisfaction trumps everything else. 

Get a Trusted, Local Payroll Outsourcing Partner Before It’s Too Late
If your payroll company has merged with a global payroll provider, it doesn’t mean you have to burn a hole in your pocket with hefty payroll quotes. What you need is a payroll system that works for you, and a payroll partner who knows the payroll landscape like none other. 

With payroll intelligence of over 20 years, Propay Partners has a 360-degree view of all payroll requirements of foreign companies operating in all sectors. Our payroll processes are optimised with cloud-backed software, automated banking and tax filing capabilities so that your payroll is delivered error-free and on time. Our compliance platform checks your statutory status periodically to ensure you are within legal limits. 

To learn more of our payroll outsourcing services, visit us at

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