2025/26 Salary Guide: Contract Recruitment Market Insights

The contract payroll recruitment market is currently highly competitive and firmly candidate-led. With rising demand and increasing complexity in payroll systems, employers are facing growing pressure to act quickly and offer compelling packages. This evolving landscape presents both challenges and opportunities for businesses and professionals alike.

A significant trend shaping the contract market is the strong demand for payroll professionals with specialist systems experience. Businesses are prioritizing the implementation or optimization of payroll software, particularly where it integrates with HR or finance systems.

Approximately one-third of professionals report that their organizations are investing in software upgrades or working to maximize the functionality of existing platforms. Consistent with last year’s trends, UKG, Dayforce, ADP, and Workday remain the dominant payroll software platforms in the Canadian market. Contractors with experience in these systems are particularly well-positioned to thrive, given the volume of projects and integration work involving these technologies.

When undertaking implementation or transformation projects, companies are typically taking one of two approaches. Some choose to backfill their existing Payroll Manager role with a contractor to maintain day-to-day operations while the internal lead oversees strategic alignment and stakeholder engagement. Others bring in a specialist contractor with deep implementation expertise to lead the project directly. In both cases, the flexibility of contract hiring ensures that workloads are manageable, and the right skills are in place to deliver a successful outcome.

While the permanent market is seeing a shift toward more in-office expectations, businesses are demonstrating greater flexibility for contractors in order to attract the talent they need. Many are offering hybrid or fully remote arrangements for payroll contractors – an approach that not only meets candidate expectations but also expands access to skilled professionals in regions where local talent may be limited.

Contractor pay rates are rising in line with demand. For professionals, this means attractive earning potential and enhanced flexibility. For employers, while securing top contract talent may require faster and more competitive offers, it also provides a strategic, cost-effective alternative to permanent hiring. Contractors offer businesses the ability to “try before you buy,” allowing for exploration of role responsibilities or coverage of short-term needs without long-term commitment.

Looking ahead, continued salary inflation and global economic uncertainty may further push businesses to favour contract hiring. Many organizations are expected to take a cautious approach, using contractors to manage personnel costs until there is greater clarity around market conditions, role scopes, and required skill sets.

The strength of the payroll contract market presents a clear opportunity for payroll professionals. For candidates, it offers financial gain, flexibility, and the ability to work on impactful projects. For businesses, although competition for this talent is fierce, contract hiring remains one of the most effective ways to access the expertise needed to drive transformation and operational success.

Michelle Dunnill | Associate Director of Contract

Michelle Dunnill is our go-to specialist for contract payroll recruitment. With over 20 years of experience in staffing, Michelle brings a practical, hands-on understanding of the Canadian payroll market, especially when it comes to interim hiring.

Connect with Michelle on LinkedIn to continue the conversation or learn more about how Portfolio Payroll Canada can support your hiring needs.