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Integrating Personal Data Protection Act into Payroll Process

Updated: Aug 31, 2023

In any business, payroll processing (whether done by the company itself or provided through outsourcing) is an intricate task that demands confidentiality. Since it involves the handling of personal data of tens and hundreds of employees, the task at hand needs to be dealt with great detail and meticulousness.

Although majority of professional payroll providers assure their customers complete security of their personal data, Singapore went one step ahead and decided to integrate the PDPA (Personal Data Protection Act) into payroll processing.

To explicate further into PDPA and the need to integrate it into payroll processing, the current article emphasizes on the importance of the Personal Data Protection Act and how it ensures safe payroll processing.

In 2012, the Singaporean parliament passed the PDPA (Personal Data Protection Act) under the then president Dr. Tony Tan. The agenda of this Act was to safeguard the collection, use and disclosure of personal data by organisations around the country. While it is under every organisation’s policy to protect personal data, the PDPA aimed to provide a baseline standard for every organisation throughout the country.

As consequence to the implementation of the Personal Data Protection Act (2012), the payroll processing sector has also realized its significance as it already complies with the local regulations of any area. Let’s look into the major objectives of PDPA and then proceed onto how its integration with payroll process can and has reformed secured payroll processing.

Objectives of the Personal Data Protection Act (2012)

- Any organisation that works with and for people needs personal data for legitimate reasons. The PDPA acknowledges that need on the part of organisations and aims to protect individuals’ personal data while allowing organisations to collect theirs as per what they require.

- It is understood that any organisation operating in or outside the country inevitably needs your personal data for reasonable purposes, so the PDPA makes sure that the data you share with organisations may not be misused in any form.

- Since there are elements that do not deter in their attempts to steal and abuse personal data of users for various illegal purposes, the PDPA act aims to govern organisations so that they can not only secure personal data better but also win individuals’ trust.

- As a result, Singapore establishes its stature as a trusted hub for businesses within and outside the country. We believe it is safe to say that PDPA not only ensures data protection but also takes into consideration the relationship between organisations and individuals.

Integrating Personal Data Protection Act into Payroll Process

After giving an overview of the Personal Data Protection Act and its utility in general, let us move on to its significance in payroll processing. It is an understood reality that in order to provide payroll services to any organisation, its employees’ personal data is required for collection, use and disclosure. Normally, organisations commit to their clients that their employees’ data will remain safe, integrating PDPA into payroll process can yield even greater outcome for employees as well as for organisations.

Here are some of the obligations that can help manage employees’ data under PDPA once it integrates with payroll processing:

- Collection of Personal Data: When a payroll processing company gets to work, the first thing they do is collect personal data of individuals of the organisation they are hired for. Under the PDPA obligations, payroll processors are accountable for the data they collect and are obliged to notify individuals about the purpose of data collection. In addition to that, they are bound to disclose or use personal data after the consent of individuals. If an individual refuses to give out a certain piece of information, under the PDPA regulations, the processing authority is bound to withdraw at once. All in all, payroll processing that involves only reasonable amount of data collection that too on the consent of individuals can open doors of trust between organisations and individuals.

- Care of Personal Data: Once the data is collected in compliance with the given regulations of PDPA, the next important step that arises is to take care of that data. In accordance with the Act, PDPA ensures that the personal data collected by payroll processors is accurate and complete. At the same time, the protection of personal data is an integral part of PDPA’s regulations that emphasize on reasonable security arrangements so that the data can be prevented from theft, unauthorized access, or similar risks. Once the data is collected and is no longer in use, the Act maintains that it should be disposed off properly. Also, if personal data is to be transferred to another country, even in that case the regulations need to be implemented. By executing the above-mentioned regulations according to PDPA, payroll processing can be made much more convenient and safer as it ensures individuals that their personal data is in safe hands, which ultimately leads them to trust the organisation they are dealing with.

- Individual’s Autonomy over Personal Data: Even when individuals give consent to collect, use or disclose their personal data, they still have the autonomy to withdraw their decision anytime. Another issue that may arise is incorrect data or error that an individual has the right to omit, as per the Act. In case any of the personal data is breached, the relevant organisation is supposed to inform the individual and take action accordingly.

Looking into the Personal Data Protection Act and how it aims to safeguard personal data of individuals, it is quite evident that the integration into payroll processing was much needed. Not only does it ensure safe payroll processing to employees but also the data that they hand over with utmost trust into organisations. Singapore payroll processing has set an example for other organisations all around the globe. Its efficacy in secure collection, care, use, and disclosure personal data has gathered much attention from corporations of all kinds, especially the ones that require personal data for legitimate purposes. So, integrating PDPA into payroll process can be remarked as one of the groundbreaking reforms that consider individual personal data valuable enough to be protected at all costs.

Contact Impact Best Pte Ltd @ 6411 7278 for secured and professional payroll outsourcing services.

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