7 payroll trends to watch out for in 2025

You cannot have a functioning company without payroll. It is an essential aspect of business that ensures your employees are financially compensated for their work.

As companies continue to evolve their procedures, payroll systems also continue to change. This paves the way for new trends and practices to emerge in the next few years.

This article goes in-depth about different payroll trends to be aware of and implement in the future.

Why be aware of payroll trends?

Payroll rules and compliance regulations are always changing, so businesses and HR professionals must remain updated on these changes.

Doing so allows them to pay their employees quicker and without error or issue, increasing employee satisfaction and retention.

Additionally, businesses must adapt to the new technologies and software that help streamline payroll processes, including automation and data management.

Not only does it speed up the payment process, but it ensures that the employees’ data is kept safe from breaches.

7 payroll trends to implement in 2025

Payroll processes have changed over the years and will continue to evolve in various ways. As for 2024, here are the top payroll trends businesses should consider looking into:

1. Adapting to the gig economy

As the gig economy continues to rise, employers are implementing improved payroll systems to accommodate gig workers and freelancers.

Nowadays, gig workers prefer a faster and more immediate payroll system where they can receive compensation without waiting two weeks, like regular employees.

This is made possible with the rise of money transfer apps, which allow faster, same-day payments.

2. Shifting to the cloud

Gone are the days when employers would pay their employees manually through checks. As technology advances, companies are transferring their payroll processes to the cloud.

Cloud computing makes it easier to access any kind of data from any location, and that includes payroll. This cost-effective and flexible solution is ideal for small businesses with limited resources. 

However, the great thing about the cloud is its scalability to accommodate your business as it grows without much external hardware or software.

This increases the speed and efficiency with which employees receive their payments. It also minimizes possible computing errors, and employees can access their payslips easily.

3. Incorporating AI

Incorporating artificial intelligence into your payroll systems can help automate certain tedious tasks, streamlining the entire process and ensuring employees get paid faster.

AI can help with the payroll process through enhanced: 

• Aata management
• Roster management
• Real-time compliance

For example, AI can inform a payroll manager if employees forget to clock out. It will also alert said employees to adjust accordingly, ultimately leaving their payroll unaffected.

4. Prioritizing data security

As payroll systems integrate into online systems, such as the cloud, it leaves the personal information of all employees vulnerable to data breaches and leaks.

This is why the importance of data security will only increase in the succeeding years. Businesses will start implementing stricter security measures to keep employees’ data secure.

5. Focus on employee experience

HR management teams will focus on making the payroll process more employee-centered.

This includes user-friendly payroll software, digital platforms, and other innovative technologies that make accessing and viewing pay information easier.

Aside from easy access, HR teams will emphasize answering the employees’ needs and preferences through payroll capabilities.

These payroll capabilities may include payroll advances, direct deposit options, or mortgage payments.

6. Streamlined global payroll

As businesses continue to hire talent internationally, there is a need to incorporate global payroll practices, such as:

• Timely payments
• Accurate currency exchanges
• Abiding by the necessary tax laws

Global payroll is a complicated process as each country has its own rules and regulations regarding compensation. Therefore, more companies with international employees will integrate various digital systems to streamline the payroll process.

This includes investing in necessary international money transfer software and creating centralized data systems that a global workforce can access.

7. On-demand pay

There are times when employees ask to receive their paycheck (or a portion of it) prior to payday. Fortunately, this trend is nothing new and will continue to be implemented in the future.

On-demand pay gives employees access to their compensation ahead of time instead of waiting every two weeks or every month.

Staying updated on the latest payroll trends

The rise of technology and automation has made businesses rethink the way they do payroll. It is faster, more convenient for employees, and puts a greater emphasis on compliance and data security.

While these changes are already in effect, they will continue to accelerate in the coming years, and businesses must stay updated and be ready to adapt.