PAYR LL INSIGHTS SURV Y REPORT 2025
This report looks at data collected from in-house payroll teams Part of the CIPP Payroll Insight Survey Report series including Outsourced and Payroll Professional. See page 9 for links to the other reports.
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PAYROLL INSIGHT SURVEY REPORT 2025 | IN-HOUSE
Foreword
Welcome to the new Payroll Insights Report 2025. This report looks at data collected from in-house payroll teams. Thank you to all who responded, and we hope this report provides some valuable insights into how such teams operate. The results can be used for benchmarking and understanding where you need to make changes in your payroll team. Please share this report with other payroll professionals, colleagues and peers. It is important that we raise the profile of payroll as a profession and shout about the hard work that we do.
CIPP Policy and Research Team
Contents Sponsor foreword
3 4 5 5 6 7 7 8 8 8 9 9
Key takeaways
Number of payroll professionals in an organisation Payroll professional working arrangements
Qualification requirements
Pay frequencies Cut off deadlines Payslip access Payment methods What’s on a payslip? Benefits offered Benefit processing Statutory payments Pension processing
10 11 11 12
Key Performance Indicators (KPIs)
Top challenges in payroll
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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.
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PAYROLL INSIGHT SURVEY REPORT 2025 | IN-HOUSE
Sponsor foreword
Today’s organisations face more complex workforce challenges than ever. The CIPP Payroll Insights Report 2025 reveals just how stretched in-house payroll teams have become, with some professionals now processing nearly 1,000 payslips each month. With tight cut-off deadlines and constant tax and pay queries, it’s clear the pressure on payroll teams has never been higher. At Dayforce, we applaud the dedicated payroll professionals who deliver accurate, timely payments every time. We’re proud to sponsor this year’s Payroll Insights Report – In-house and to help raise the profile of payroll professionals, recognising the huge value they bring to organisations across the UK and worldwide. Our brand promise at Dayforce is to “ Make Work Life Better ” by helping people “ Do the Work You Are Meant to Do ”. This isn’t just a slogan – it’s what we enable millions of people globally to achieve every day. As today’s workforce seeks more flexibility, personalisation, and purpose, our global people platform helps organisations cut through complexity and shape the workforce of tomorrow. So how does technology free payroll professionals to focus on the work that matters most? Take payroll processing. Many leaders still only discover errors after payroll has closed – when it’s too late. Traditional payroll runs in batches: upload data, press the button, hope everything balances.
This creates problems: ● no visibility into live errors (e.g. duplicates, missing timesheets) ● CFOs and CHROs forced to make decisions on outdated data ● compliance breaches only discovered after the fact. With continuous calculation and real-time data, payroll can become proactive. Errors are flagged as they happen, payroll cycles are more flexible, and organisations can even offer on-demand pay – an increasingly valuable benefit for employees. A second area where technology makes a real difference is AI . Too often the risks of AI dominate the conversation, but when delivered responsibly – secure, compliant, and on your terms – it can: ● give employees quick access to information, reducing payroll queries ● detect anomalies early, increasing accuracy ● boost productivity so payroll professionals can shift their focus from admin to strategic work. We’re proud to be working with the CIPP on this year’s report and to support payroll professionals across more than 7,000 organisations worldwide. Together, we’re helping to Make Work Life Better .
Nicole Bello General Vice President, EMEA, Dayforce
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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.
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PAYROLL INSIGHT SURVEY REPORT 2025 | IN-HOUSE
1/375
TAX CODES Tax code queries are the most likely to be asked to the team
HYBRID
You need 1 payroll employee per 375 employees
The new normal working arrangement for payroll professionals
ONLINE PAYSLIPS
A third of employers require, or prefer, payroll staff to hold a CIPP-approved qualification CIPP QUALIFIED
Key takeaways
Accessing payslips online is more popular than ever
7 DAYS MONTHLY
Paying monthly, on the last working day of the month, is the most probable frequency and pay date
The average cut off timescale for changes on a monthly payroll is 7 days
X
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.
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PAYROLL INSIGHT SURVEY REPORT 2025 | IN-HOUSE
Results
Payroll professional working arrangements Hybrid working is by far the most popular option for payroll teams now. However, 20% of respondents operate more than one arrangement in addition to hybrid, no one size fits all and this is reflected in how payroll teams operate. Hybrid arrangements are operated on a 3 / 2 split, but with no consensus on the bias, averaging around 2.5 days per week for both in office and remote days.
Number of payroll professionals in an organisation The median number of employees per payroll professional is 375. In-house payroll teams tend to top out at 5 team members until 5,000 employees payrolled is breached. This does not take into account the complexity of the payrolls, as specialised teams may require more resource. This is slightly lower than that of outsourced payroll teams, however there may be some tasks expected on in-house teams that are not part of service providers offerings.
What working arrangements do you operate for payroll staff in your organisation?
1 MEDIAN
3 AVERAGE
Payrolls per payroll professional
33%
HYBRID 77%
OFFICE BASED
825 AVERAGE
375 MEDIAN
Employees per payroll professional
19% REMOTE
2% OTHER
483 MEDIAN
988 AVERAGE
Payslips (monthly) per payroll professional
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.
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PAYROLL INSIGHT SURVEY REPORT 2025 | IN-HOUSE
Qualification requirements While requirements can vary depending on the job role, 33% of respondents require or prefer if the candidate had a CIPP approved qualification. 42% of respondents have minimum education level requirements but 29% had no requirements at all.
Do you have any qualification requirements for new payroll staff members?
33% OF RESPONDENTS REQUIRE OR PREFER IF THE CANDIDATE HAD AN IPPE OR CIPP APPROVED QUALIFICATION
42%
Minimum education levels
8%
Require a CIPP-approved qualifications (i.e. Payroll Technician Certificate / Foundation Degree)
25%
Prefer a CIPP-approved qualifications (i.e. Payroll Technician Certificate / Foundation Degree)
1%
Require other industry qualification
3%
Prefer other industry qualification
29%
No requirements or preferences
11%
Other (please specify)
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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.
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Pay frequencies
Top 4 pay dates for monthly payrolls 1. Last working day of the month
Monthly pay is on top, with over 99% of respondents using a monthly payroll frequency. The next most popular was weekly with 24% of respondents operating this frequency.
2. 28th 3. 25th 4. 15th
Which of the following payroll frequencies do you operate?
Cut off deadlines Companies give employees and management between 2 and 3 days before pay day to provide final data inputs, with the exception of monthly payroll which averages at 7 days.
99%
24%
8%
How many working days before pay day do you stop accepting changes or additions to the payroll?
MONTHLY
WEEKLY
OTHER
ANNUAL
FORTNIGHTLY
FOUR-WEEKLY
5%
5%
3%
2 days
3 days
3 days
FORTNIGHTLY
FOUR-WEEKLY
ANNUAL
MONTHLY
FORTNIGHTLY
7 days
2 days
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.
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PAYROLL INSIGHT SURVEY REPORT 2025 | IN-HOUSE
87% of respondents use an online portal for payslip access, this has become the new norm with many software packages providing this facility. Some respondents stated they use other methods as well. 94.5% of respondents use Bacs as payment method - making it the king. Faster payment was a not-so-close second with 6.5% of respondents using this method. CHAPS and cheques are only used by 1 respondent each, that’s right, not 1% , just 1 company that provided data each.
WHAT’S ON A PAYSLIP?
EMPLOYER
EMPLOYEE Peter Payroll
DATE
Peter Payrolls Payroll Services
25–JUN-25
EMPLOYEE DETAILS
Name
99% PAYE Reference 73% Work Address
Home Address
60% 20% 50% 98% 96% 99% 75% 57%
Bank details - all information Bank details - partial information
5% Pay point (department/location)
6% Payroll Number 8% Payment date
Date of Birth
National Insurance number in full National Insurance number in part
92% Tax code
3% National Insurance category
Payslip message
EARNINGS AND DEDUCTIONS
LEGAL REQUIREMENT
OTHER ITEMS MENTIONED:
Basic Pay
98% YTD totals for tax, pension and NI
EE's National Insurance EE's pension deduction ER's National Insurance ER's pension contribution
98% Salary sacrifice
98% Holiday uplift for commission
69% Attachment orders
79% Tax period
Expenses paid
34% 26% 26% 90% 64% 46%
Holiday pay separate (rolled up)
£
Holiday pay separated (using allowance)
Overtime pay separate
Payment method Payrolled benefits
£
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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.
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Benefits offered
Benefit processing P11D processing is still the number one way to process benefits with over 70% using the method. However, over 45% of respondents are using payrolling. We wonder how many companies made the switch, or partial switch, due to the planned payrolling of benefits from April 2026, which has now been delayed to April 2027?
80%
Cycle to work
78%
Private Healthcare
65%
Death in Service
58% 57% 57%
Company Car / Van
How do you currently process benefits?
Buy / Sell Holiday
Car Allowance
51%
Lifestyle Benefits (Vouchers / Discounts Portal)
43%
Payrolling only 18%
49%
Employee Assistance Programmes
P11D process only
35%
Income Protection
28% 28% 28%
Loans
Private Dental Care
Gym membership
28%
10%
24%
Workplace Childcare
No reportable benefits processed
Mix of P11D and payrolling
20%
Share Schemes
18%
Saving Schemes
10% 9%
Electronic Devices for Personal Use
Living Accommodation
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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.
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Full pay Full duration
Full pay Partial duration
Full pay Reducing during duration
Partial pay Above statutory
Statutory only
Statutory payments Interestingly, Neonatal Care pay is likely to be paid at statutory only, this may be due to its implementation in April 2025, and whilst companies build processes and procedures to catch up with the new entitlement. Paternity is likely to be either paid at full pay for the two-week period, whilst some pay statutory only for the two-week period. Whereas maternity is usually paid at full pay for partial duration or full pay reducing during the duration.
ADOPTION PAY
MATERNITY PAY
NEONATAL PAY
NEONATAL CARE PAY IS LIKELY TO BE PAID AT STATUTORY ONLY
PATERNITY PAY
PARENTAL BEREAVEMENT PAY
SHARED PARENTAL PAY
SICK PAY
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.
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Pension processing Salary sacrifice is the most commonly used form of pension deduction; with the National Insurance benefits it can bring it’s no surprise. With the increases to National Minimum Wage, and its impacts with salary sacrifice, it’s also no shock to see the other methods still going strong.
38%
47% 73%
SALARY SACRIFICE
NET PAY ARRANGEMENT
RELIEF AT SOURCE
Key Performance Indicators (KPIs) Payrolls being completed on time is the most used KPI, with payroll errors that impact the employee being a close second. Queries resolved is also commonly used. Almost 9% of respondents don’t use any KPIs at all.
TAX CODE QUERY
Payroll completed on time 70% Payroll errors (before payroll - no employee impact) 45%
Payroll errors (after payroll - employee impacted) 52%
Queries resolved 47%
TOP 3 PAYROLL RELATED QUERIES
UNDERPAYMENT (LATE DATA RECEIVED)
Other 11%
None 9%
ACCESS TO PAYSLIPS
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.
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Top challenges in payroll
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.
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PAYROLL INSIGHT SURVEY REPORT 2025 | IN-HOUSE
Other reports
PAYR LL INSIGHTS SURV Y REPORT 2025
CLICK TO VIEW
This report is part of a series of three payroll benchmarking surveys, exploring in-house operations, outsourced services, and the role of payroll 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.
This report looks at data collected from outsourced payroll teams Part of the CIPP Payroll Insight Survey Report series including In-house and Payroll Professional. See page 9 for links to the other reports.
PAYR LL INSIGHTS SURV Y REPORT 2025
This report looks at data collected from payroll professionals Part of the CIPP Payroll Insight Survey Report series including Outsourced and Payroll Professional. See page 10 for links to the other reports.
CLICK TO VIEW
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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.
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