Over 1 in 2 Singaporeans spend $5,000 annually on out-of-pocket business costs

Long waits for reimbursements are one key issue employees face, said Airwallex.

Over half or 56% of Singaporean respondents spend S$5,000 annually on business-related costs out-of-pocket, according to a study by Airwallex.

In a survey of 500 Singaporean employees, 23% report spending up to S$15,000, and 5% said that their expenses exceed S$20,000 annually before they are reimbursed.

The hospitality and leisure sector logged the highest out-of-pocket employee spending, with 15% of respondents from the industry reporting expenses above S$20,000.

The manufacturing sector (13%) and the education sector (8%) followed in terms of highest personal financial exposure.

One of the key issues highlighted is not only the high upfront payouts faced by many employees, but also the long waits for reimbursement. About 19% or almost a fifth of the survey respondents said it takes three to four weeks to receive their money back, and 8% wait even longer.

This is in contrast to the ideal reimbursement timeframe, which respondents put at four to five business days. About 24% of the respondents enjoy this timeframe, and 6% receive payment on the same day.

About 85% of the respondents said that having a company corporate card would ease concerns about expense reimbursements, Airwallex said.

Other key issues faced by employees regarding expense reimbursement include financial stress due to reimbursement delays, with two-fifths (41%) of the respondents indicating this.

Over half or 52% rely on credit cards to cover business expenses, risking debt and interest charges if reimbursements are delayed, Airwallex noted.

Meanwhile, over 1 in 10 (12%) have skipped company events to avoid upfront costs, and 7% quit their jobs due to the reimbursement process.