Irish Payroll Challenges 2025: What Employers Are Prioritising This Year

In 2025, Irish employers are under more pressure than ever to ensure payroll is accurate, compliant, and efficient. But it's not just about paying people on time anymore. According to the latest SD Worx Research, undertaken earlier in 2025, 1 in 3 Irish employers now view payroll as a core part of the employee experience. 

So, what’s keeping payroll teams awake at night in 2025? We asked over 300 senior HR, professionals in Ireland to share their top challenges - and how they’re planning to overcome them

What are the top payroll challenges for Irish businesses? 

Our 2025 SD Worx Pulse Survey shows that payroll leaders in Ireland face ongoing and evolving challenges. Among the most pressing are: These findings reflect a shift in mindset. Accuracy, compliance, and data security remain critical, but employers are increasingly connecting payroll with broader HR goals - especially employee satisfaction and digital transformation. 

In Small and Medium Enterprises, the challenges that are faced by larger businesses are echoed and increased in these smaller counterparts. The pressure upon SMEs can be extremely challenging, and with a reduction in staff and often budgets, it stands to reason that their challenges differ significantly also.  

In SMEs with 50 or fewer employees in Ireland, the respondents said that their greatest challenge was in promoting employee well-being, work-life balance, and positive working conditions. With fewer staff to share the burden of a business, it stands to reason that this would be a huge concern. Avoiding burnout is essential when you are building a sustainable business from the ground-up.  

In a similar vein, the second most pressing concern for SMEs in this bracket was supporting personal growth and career development to meet talent needs and ensure long-term success. Making sure SMEs are fostering learning and development initiatives for the future of their business is key for growth but can be challenging to juggle in busy work environments.  

Learn more about avoiding Payroll Mistakes for SMEs in our blog: 5 Costly Payroll Mistakes SMEs Make (and How to Avoid Them)

Irish businesses are increasingly dealing with: 

1. More complex regulations (pensions auto-enrolment and pay transparency on the horizon) 

Irish employers are preparing for significant regulatory changes, including the introduction of pensions auto-enrolment in January 2026 and new pay transparency requirements by June 2026. The new auto-enrolment scheme will require eligible employees to be automatically enrolled in workplace pensions, with phased contributions from both employers and employees. At the same time, the EU Pay Transparency Directive will mandate gender pay gap reporting, salary range disclosures, and greater transparency in pay practices.   

2. Higher expectations from employees for timely, transparent pay 

Employee expectations for timely and transparent pay have never been higher, especially as workplaces evolve and new legislation approaches.  By prioritising transparency and reliability in payroll, we help organisations not only meet compliance requirements but also strengthen their reputation as fair and attractive employers.   

3. Pressure to reduce costs while improving payroll speed and accuracy 

The pressure is never off when it comes to reducing costs, with businesses shopping around for other options that might serve their needs better with the money they have available.  See also: 

4. Demand for better payroll technology and integration 

Integration is absolutely vital when it comes to payroll, and in today’s world, the need only increases.  With this in mind, Irish employers are reassessing how they run payroll- transforming payroll into a strategic function that contributes to compliance, culture, and the overall employee experience. 

• Top priorities include data security, cost control, and payroll accuracy.
• 29.3% of Irish employers now connect payroll to employee experience.
• Real-time processing and system integration are rising in importance.
• Last year’s trends remain relevant, but digital maturity and automation are growing factors. 

Sustainability and ESG in Payroll  

Irish businesses are increasingly adopting greener payroll practices, such as digital payslips and paperless systems, to reduce waste and support sustainability goals. Embedding ESG (Environmental, Social, and Governance) principles into payroll not only helps the environment but also builds trust with employees and enhances employer reputation. SD Worx is proud to have been awarded a bronze EcoVadis Award in 2024. 

Cloud and Technology Trends 

The shift to cloud-based payroll solutions is accelerating, offering Irish employers benefits like real-time access, enhanced data security, and seamless integration with HR systems. This digital transformation supports hybrid and remote work, improves collaboration, and ensures payroll data is always up to date. 

SME Focus and Expanded Support 

SD Worx Ireland is investing significantly to extend payroll solutions to SMEs, ensuring smaller businesses have access to the same advanced technology and expertise as larger enterprises. This expansion supports sectors like retail, hospitality, and professional services, empowering SMEs to manage payroll challenges efficiently and compliantly.

Whether you're struggling with rising complexity, looking to improve integration, or simply trying to stay compliant, you're not alone. SD Worx supports organisations across Ireland with future-ready payroll solutions that help turn today’s challenges into tomorrow’s strengths.