2025/26 Salary Guide: Payroll Rectuitment Market Insights

The Canadian payroll recruitment market remains strong and stable, with 65% of companies having hired in the past three months and 74% planning to do so in the next quarter; an 18% year-on-year increase. We’re experiencing that businesses are placing renewed importance on payroll, recognizing it as a standalone function rather than something to be absorbed by HR or finance. This is particularly evident in SMEs, where dedicated payroll positions are being created to reflect the critical nature and complexity of the role.

Hiring activity is largely focused on addressing key gaps, but there’s a clear trend towards quality over speed. Employers are holding out for the right candidate, especially for mid-level roles such as senior specialists, team leads, and supervisors; areas where demand is highest but the talent pool is low.

Our report indicates a noticeable shift in how companies are approaching recruitment. Fewer payroll professionals are handling it themselves; instead, many are leaning on internal talent teams or partnering with agencies; often after finding the process more challenging than expected due to limited networks or role-specific knowledge. We see this play out repeatedly with clients who try direct hiring, only to later seek our support when roles remain unfilled.

Designations are an increasingly important part of the hiring equation. Our research shows that 67% of payroll professionals now hold a PCP or PLP designation, and among those who don’t, 55% are actively interested in obtaining one. As more companies are demanding that their payroll employees have one, it isn’t surprising that 78% reported that paid tuition was a part of their employment package, and 44% report having an organizational membership with the National Payroll Institute (NPI). Paid tuition & career development ranked 4th in the top motivators when seeking a new role, indicating that if your business does not offer these, you’re likely to struggle to hire and retain payroll talent.

Technical capability remains equally vital, proficiency in payroll software and advanced Excel skills are consistently expected. Many employers still rely heavily on manual spreadsheet processes despite having system solutions in place, which makes these skills non-negotiable.

Salaries in the payroll sector are still rising, but at a slower pace than in recent years, as companies become more disciplined with budgets and salary bands. For employers who can’t compete solely on pay, it’s increasingly important to enhance the overall employment package. Flexibility remains a major priority for candidates, and we’re seeing some tension here; many businesses are starting to increase in-office requirements, pulling back from hybrid arrangements established in recent years. This shift is creating friction, particularly among candidates with caregiving responsibilities or strong work-life balance expectations. In fact, a recent poll we conducted showed that some candidates would consider accepting a lower salary than initially expected if it meant receiving more vacation leave or additional work-from-home days. These findings highlight that while competitive pay still matters, nonfinancial benefits are becoming key differentiators in a competitive talent market.

Joe Middleton | Associate Director

Joe Middleton is the Associate Director at Portfolio Payroll Canada, part of The Portfolio Group. Based in Toronto, Joe leads the Canadian division, managing a team of consultants and driving senior-level recruitment and business development across the payroll sector.

With over 20 years of recruitment experience – including executive search, permanent, and temporary placements – Joe brings deep industry insight and leadership expertise to every engagement. His first-hand experience in Canadian payroll adds a unique layer of understanding that informs his approach and builds trust with clients and candidates alike.

Portfolio Payroll Canada is the country’s only specialist payroll recruitment agency, offering a tailored 5-star Trust Pilot rated service to leading Fortune 500 companies, global enterprises, and growing small to mid-sized businesses in Canada. With international reach through offices in the UK, Ireland, and Canada, the team is proud to support the professionals who power payroll.

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