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)
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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)
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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
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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
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.
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