Payroll Insights Report 2027 - Pay Professionals

This report analysis data from pay professionals

OUTSOURCED

IN-HOUSE

PAY PROFESSIONALS PAYR LL INSIGHTS SURV Y REPORT 2026

This report looks at data collected from pay professionals

THINK PAY THINK CIPP

Part of the CIPP Payroll Insight Survey Report series including Outsourced and In-house. See page 14 for links to the other reports.

PAYROLL INSIGHTS SURVEY 2026 – PAY PROFESSIONALS

FOREWORD

Welcome to the Payroll Insights Report 2026. This report looks at data collected from payroll professionals. Thank you to all who responded, and I hope this report provides some valuable insights into the people that make up this sector and profession. The results can be used for benchmarking and understanding how you compare with other payroll professionals across the country. You can use it to see where in your career you are, where you want to be and what you can expect from job roles, salary and qualification levels. Please share this report with other pay professionals, colleagues and peers. It is important that we raise the profile of payroll as a profession and showcase the important work carried out by payroll professionals across the UK.

CIPP Policy and Research Team

Contents

4 6 6 8 9

Respondent demographics Working arrangements

Respondent payroll job breakdown

Average age and salary for each seniority level Length of service in job, roles and industry

10 11 12

The payroll career ladder CIPP-approved qualifications

How can a CIPP-approved qualification impact your earnings?

2

In most cases percentages have been rounded to two decimal places for clarity and may not add up to 100%. Graphics may have been rounded to whole percentages.

PAYROLL INSIGHTS SURVEY 2026 – PAY PROFESSIONALS

Employee queries appear across every payroll role, Apprentice to Manager, more than any other task, suggesting pay and benefits queries are a major demand and key efficiency opportunity EMPLOYEE QUERIES DOMINATE

THE BIGGEST SALARY LEAP

Payroll is an experienced profession: four in five respondents were over 35, and Managers / Directors averaged 20-24 years’ experience. Leadership comes from long-term development, not fast-track progression EXPERIENCE COUNTS

Salaries rise at every stage, but the Team Leader to Manager jump is

payroll’s biggest milestone, with pay rising almost 40%

KEY TAKEAWAYS Professionals holding a CIPP-approved Level 5 Diploma earned on average 26.1% more than those without a CIPP-approved qualification QUALIFICATIONS PAY OFF

68% WORK HYBRID

The average payroll professional is 46 years old, identifies as female, works in a payroll bureau THE TYPICAL PAYROLL PRO

Hybrid working remains the dominant work preference, with 68% respondents working this way

More than 85% of respondents hold a CIPP membership, with associate and full membership accounting for almost three- quarters of all respondents 85%+ ARE CIPP MEMBERS

or education sector in southeast England in a hybrid capacity (at least from those who answered our survey)

3

In most cases percentages have been rounded to two decimal places for clarity and may not add up to 100%. Graphics may have been rounded to whole percentages.

PAYROLL INSIGHTS SURVEY 2026 – PAY PROFESSIONALS

RESULTS

Memberships status of respondents

Respondent demographics

34% Associate

The average pay professional

39% Full

9% Affiliate

Ages of respondents

2% Fellow

14% Not a member

2% Chartered

3% 6% 11% 11% 17% 16% 14% 16% 6%

The amount of respondents that were not a member has decreased this year by over 50% . More than three quarters of respondents now hold some form of professional membership, with associate and full membership accounting for the vast majority of memberships recorded.

18-24

25-30 31-35 36-40 41-45 46-50 51-55 56-60 61+

4

In most cases percentages have been rounded to two decimal places for clarity and may not add up to 100%. Graphics may have been rounded to whole percentages.

PAYROLL INSIGHTS SURVEY 2026 – PAY PROFESSIONALS

Which industry best fits your current workplace?

Payroll bureau outsourcer 13% Charity / volunteering 4%

Accountancy

Education

Manufacturing

Healthcare

Retail

Other (please specify) 9%

7%

10%

9%

5%

5%

Public sector e.g police, fire, civil

Financial services 4%

Engineering

Local Government 3%

Insurance

Payroll / Human resources (HR) service provider 3%

service 4%

3%

3%

Information technology 2%

Construction

Logistics

Transport

Legal

Leisure

Media

2%

1%

2%

1%

1%

1%

Payroll / HR bureau and software provider 1%

Pension provider

Distribution

Utilities

Banking

Bookkeeping

Hospitality

1%

1%

1%

1%

1%

1%

The following industries received 0.49% or less and have been statistically rounded down to 0%: Catering, care facilities, recruitment, telecommunications, outsourcer (not payroll services)

5

In most cases percentages have been rounded to two decimal places for clarity and may not add up to 100%. Graphics may have been rounded to whole percentages.

PAYROLL INSIGHTS SURVEY 2026 – PAY PROFESSIONALS

Working arrangements

3/2 HYBRID WORKING IS STILL THE MOST POPULAR WAY OF WORKING, WITH MOST RESPONDENTS DOING THREE OFFICE DAYS AND TWO HOME DAYS

Hybrid working remains the most common working arrangement with office-based increasing and remote decreasing since last year. Where hybrid working is used, respondents typically spend around three days in the office and two days working remotely each week

68% HYBRID

20% OFFICE- BASED

12% REMOTE

Respondent payroll job breakdown

1%

21%

10%

6%

54%

8%

APPRENTICE

ADMINISTRATOR

TEAM LEADER / SUPERVISOR

DIRECTOR

MANAGER

OTHER

6

In most cases percentages have been rounded to two decimal places for clarity and may not add up to 100%. Graphics may have been rounded to whole percentages.

PAYROLL INSIGHTS SURVEY 2026 – PAY PROFESSIONALS

Top tasks for each payroll seniority level

APPRENTICE

ADMINISTRATOR

LEADER / SUPERVISOR

MANAGER

DIRECTOR

1. Employee queries 2. Student loans 3. Assisting co-workers 4. National Insurance calculations 5. Payslip distribution

1. Employee queries 2. Pension deductions 3. Statuary parental leave and pay 4. Student loans 5. Attachment orders

1. Employee queries 2. Pension deductions 3. Assisting co-workers 4. Checking completed payrolls 5. National Insurance calculations

1. Year-end processes 2. Checking completed payrolls 3. Employee queries 4. Analysis 5. Pension reporting

1. Review legislation and policy 2. Analysis 3. Project work 4. Software implementation 5. Budgets

Key points ● Director-level respondents were more likely to report responsibilities such as project work, software implementation, budgeting, analysis and legislative review. This suggests payroll leadership is solidifying itself as a strategic business function ● Year-end processes, analysis and checking payrolls tasks would likely be a manager’s responsibility, showing the logical progression from processing to quality assurance ● Employee queries appeared in every operational role from apprentice to manager level, suggesting they remain one of the most significant demands on payroll teams. This suggests that improving employee understanding could have the biggest impact on payroll team efficiency ● Technical processing tasks sit at lower and mid-level roles suggesting as seniority increases, focus shifts away from transaction processing and towards oversight, compliance and strategy ● Assisting co-workers appears on both apprentice and team leader level, indicating that coaching and team support are important at both the entry and supervisory levels.

PAYROLL LEADERSHIP IS SOLIDIFYING ITSELF AS A STRATEGIC

BUSINESS FUNCTION.

7

In most cases percentages have been rounded to two decimal places for clarity and may not add up to 100%. Graphics may have been rounded to whole percentages.

PAYROLL INSIGHTS SURVEY 2026 – PAY PROFESSIONALS

Average age and salary for each seniority level

APPRENTICE

ADMINISTRATOR

LEADER / SUPERVISOR

MANAGER

DIRECTOR

Outside London In London

Outside London In London

Outside London In London

Outside London

Outside London

In London

In London

Average age

Average age

Average age

Average age

Average age

Low data

No data

39

33

42

45

48

50

48

50

Average salary

Average salary

Average salary

Average salary

Average salary

£23,450

No data

£31,650

£32,800

£37,600

Low data

£52,050

£70,600

£76,850

£82,850

Company performance bonus 67% receive nothing 67% receive nothing

Company performance bonus 65% receive nothing 71% receive nothing

Company performance bonus 75% receive nothing

Company performance bonus 65% receive nothing

Company performance bonus 71% receive nothing 75% receive nothing

58% receive nothing Average – 20200 Median - 8000

Low data

Average – 550 Median - 1000

Average – 15000 Median - 15000

Average – 714 Median - 540

Average – 1760 Median - 1500

Average – 4300 Median - 3000

Average – 8288 Median - 7250

Average – 167 Median - 167

Average – 167 Median - 167

Personal performance bonus 87% receive nothing

Personal performance bonus 81% receive nothing 83% receive nothing

Personal performance bonus 64% receive nothing 75% receive nothing

Personal performance bonus 79% receive nothing

Personal performance bonus 100% received nothing No data

86% receive nothing

Low data

Average – 600 Median - 600

Average – 5000 Median - 5000

Average – 931 Median – 981

Average – 4725 Median - 2500

Average – 23815 Median - 10074

Average – 585 Median – 500

Average – 1384 Median - 1384

Other bonus

Other bonus

Other bonus

Other bonus

Other bonus

83% receive nothing

85% receive nothing

93% receive nothing

93% receive nothing Average – 750 Median – 750

100% receive nothing Average – 0 Median - 0

71% receive nothing

89% receive nothing Average – 892 Median - 525

100% received nothing

No data

Low data

Average – 2650 Median – 2650

Average – 2407 Median - 2000

Average – 20000 Median - 20000

Average – 1000 Median - 1000

London Premium +£18,550

London Premium +£1,150

London Premium +£6,000

8

In most cases percentages have been rounded to two decimal places for clarity and may not add up to 100%. Graphics may have been rounded to whole percentages.

PAYROLL INSIGHTS SURVEY 2026 – PAY PROFESSIONALS

Length of service in job, roles and industry

Average age and salary for each seniority level continued

The London premium appears to be concentrated in leadership positions rather than operational payroll roles. Whilst Administrator salaries are broadly comparable, the most significant regional pay difference occurs at Payroll Manager level, where London respondents reported average salaries £18,550 higher than those outside London

Current role

Current employer

Pay industry

APPRENTICE Years of service

1

1

1

Key points:

Current role

Current employer

Pay industry

ADMINISTRATOR Years of service

4

6

9

● Senior payroll roles continue to be associated with greater age and experience, reinforcing the profession's emphasis on technical expertise and career development ● Progressing from Administrator to Director, the average age increases by nine years (39 to 48), while average salary increases by 143% (£31,650 to £76,850) outside London. In London, the average age increases by 17 years (33 to 50), accompanied by a 153% increase in average salary (£32,800 to £82,850) ● Payroll Managers earn nearly 40% more than Team Leaders, representing the largest salary increase between career levels and reinforcing the value placed on experience within the profession. The greatest financial reward seems to be when moving to management rather than supervisory roles ● Bonus participation appears relatively low across the profession. The majority of respondents at most grades reported receiving no company performance bonus, suggesting that base salary remains the primary reward mechanism for payroll professionals.

Current role

Current employer

Pay industry

TEAM LEADER Years of service

4

8

14

Current role

Current employer

Pay industry

MANAGER Years of service

6

9

20

Current role

Current employer

Pay industry

DIRECTOR Years of service

7

11

24

40% PAYROLL MANAGERS EARN NEARLY 40% MORE THAN TEAM LEADERS

BONUS PARTICIPATION APPEARS RELATIVELY LOW ACROSS THE PROFESSION

Key points:

● Payroll remains a highly experienced profession. Four in five respondents were aged over 35, while Managers and Directors reported an average of 20 and 24 years of payroll experience respectively. This suggests payroll professionals typically spend many years in the profession before reaching senior leadership positions. Leadership positions appear to be built through long-term professional development rather than rapid career progression ● The transition from Team Leader to Manager represents the largest increase in industry experience, suggesting this is the point at which broader technical and leadership expertise becomes particularly important ● The average Director has spent almost half of their career with their current employer suggesting that this role also requires extensive organisation knowledge ● Apprenticeships are being used to bring people into the profession.

9

In most cases percentages have been rounded to two decimal places for clarity and may not add up to 100%. Graphics may have been rounded to whole percentages.

PAYROLL INSIGHTS SURVEY 2026 – PAY PROFESSIONALS

The payroll career ladder

DIRECTOR Age: 48

Salary: £76,850 Experience: 24 years

MANAGER Age: 48

Salary: £52,050 Experience: 20 years

TEAM LEADER Age: 42 Salary: £37,600

Experience: 13.5 years

ADMINISTRATOR Age: 39 Salary: £31,650 Experience: 9 years

10

In most cases percentages have been rounded to two decimal places for clarity and may not add up to 100%. Graphics may have been rounded to whole percentages.

PAYROLL INSIGHTS SURVEY 2026 – PAY PROFESSIONALS

CIPP-approved qualifications

Which CIPP-approved qualifications have you completed?

50.76%

35.50%

17.94%

12.21%

11.45%

2.29% 3.82%

1.91% 0.38%

0.76%

BSc Leadership and Management

Certificate in Pensions Administration

Diploma in Payroll Management (e.g. FdA, FdSc

Diploma in Pensions Management (e.g. FdA, FdSc

MBA Leadership

MSc Strategic Leadershp

Payroll Specialist Certificate

Payroll Technician Certificate

Payroll Technician Certificate ADVANCED

Other (please specify)

Key points:

● Combined, fewer than 4% of respondents have completed a Level 6 or Level 7 CIPP-approved leadership qualification. However, the profession appears to favour specialist payroll qualifications and workplace experience as routes into leadership, with CIPP-approved Payroll Management Diploma holders well represented across management and leadership positions.

● With over half of respondents having completed a CIPP-approved Payroll Management Diploma, it appears to be the profession's flagship qualification and is likely viewed as the benchmark qualification for many payroll practitioners seeking career progression ● The Payroll Technician Certificate is the second most widely held CIPP-approved qualification among respondents. This suggests the profession places significant value on developing strong technical payroll knowledge from an early stage, providing a foundation for future career progression

11

In most cases percentages have been rounded to two decimal places for clarity and may not add up to 100%. Graphics may have been rounded to whole percentages.

PAYROLL INSIGHTS SURVEY 2026 – PAY PROFESSIONALS

How can a CIPP-approved qualification impact your earnings?

26.1% CIPP-APPROVED LEVEL 5

Respondents holding a CIPP-approved Level 5 Diploma reported higher average salaries at every career level analysed. The largest pay differential was observed at Director level, where those holding the qualification earned an average of £24,100 more than those without a CIPP-approved qualification, equivalent to a 37.1% uplift. Team Leaders with the qualification also reported significantly higher earnings, with an average salary 34.3% above their counterparts without a CIPP-approved qualification. Across all four grades analysed, respondents holding a CIPP-approved Level 5 Diploma earned on average 26.1% more than those without a CIPP-approved qualification. While a range of factors can influence earnings, respondents holding a CIPP-approved Level 5 Diploma reported higher average salaries at every career level included in the survey, indicating that the qualification is valued across the profession.

DIPLOMA HOLDERS EARN 26.1% MORE ON AVERAGE THAN THOSE WITHOUT A CIPP-APPROVED QUALIFICATION.

Salary comparison with and without CIPP-approved qualification (Level 5)

Average salary with CIPP- approved Level 5 Diploma £56,075

ADMINISTRATOR

TEAM LEADER

Difference (% Uplift)

Difference (% Uplift)

With qualification £35,100

No qualification £31,100

With qualification £42,700

No qualification £31,800

Average salary with no CIPP-approved qualification £44,475

£4,000 (12.9%)

£10,900 (34.3%)

MANAGER

DIRECTOR

Average difference £11,600

Difference (% Uplift)

Difference (% Uplift)

With qualification £57,400

No qualification £50,000

With qualification £89,100

No qualification £65,000

Average uplift 26.1%

£7,400 (14.8%)

£24,100 (37.1%)

12

In most cases percentages have been rounded to two decimal places for clarity and may not add up to 100%. Graphics may have been rounded to whole percentages.

PAYROLL INSIGHTS SURVEY 2026 – PAY PROFESSIONALS

What is your highest level qualification (outside of CIPP-approved) that is relevant to your current role?

12%

None

There is no single educational route into payroll, suggesting the profession is accessible to people from a wide range of educational backgrounds. Outside of CIPP-approved qualifications, the most likely level for a payroll profession to have reached is Level 3 (A-level), with GCSEs and Level 6 qualifications following behind. This suggests many payroll professionals have built their careers through professional qualifications, workplace experience, and on-the-job learning rather than through university education.

Level 1 and 2

14%

(GCSE)

Level 3 (A Levels)

26%

Level 4

9%

(HNC)

Level 5

12%

(HND)

Level 6

22%

(Honours degree)

Level 7

5%

(Postgraduate / masters)

0% 0.39%

Level 8

(Doctorate)

13

In most cases percentages have been rounded to two decimal places for clarity and may not add up to 100%. Graphics may have been rounded to whole percentages.

PAYROLL INSIGHTS SURVEY 2026 – PAY PROFESSIONALS

IN-HOUSE

PAY PROFESSIONAL

OUTSOURCED PAYR LL INSIGHTS SURV Y REPORT 2026

This report looks at data collected from outsourced payroll teams

CHECK OUT THE OTHER REPORTS This report is part of a series of three payroll benchmarking surveys, exploring in-house operations, outsourced services, and the role of pay professionals. Together, they provide a comprehensive view of the payroll landscape across the UK. To gain the full picture, please explore the other reports in this series by clicking the links to the right.

THINK PAY THINK CIPP

Part of the CIPP Payroll Insight Survey Report series including Pay Professional and In-house. See page 12 for links to the other reports.

CLICK TO VIEW REPORT

PAY PROFESSIONAL

OUTSOURCED

IN-HOUSE PAYR LL INSIGHTS SURV Y REPORT 2026

This report looks at data collected from in-house payroll teams

THINK PAY THINK CIPP

Part of the CIPP Payroll Insight Survey Report series including Outsourced and Pay Professional. See page 13 for links to the other reports.

CLICK TO VIEW REPORT

14

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