Canada Payroll Salary Guide 2025/26: What Employers Need to Know Now

As the payroll profession continues to evolve, our latest Canada Payroll Salary Guide 2025/26 provides a timely and detailed snapshot of where the industry stands – and where it’s heading.

Produced in collaboration with payroll professionals across the country and launched at this year’s National Payroll Institute Conference in Calgary, the guide offers exclusive insights into how Canadian organisations are hiring, compensating, and supporting payroll teams in an increasingly complex landscape.

Why Payroll Is Now a Strategic Business Function

This year’s guide makes one thing clear: payroll has officially stepped out of the back office.

Whether you’re an SME managing your first in-house pay run or a national employer implementing a new HRIS, payroll is now tightly linked to compliance, employee satisfaction, and operational continuity.

“Payroll professionals are now at the heart of organisational strategy. Companies that recognise and invest in payroll see clear improvements in employee engagement and operational efficiency.”
– Charlotte Turner, Chief Growth Officer

👤 35% of payroll professionals now operate in standalone roles – a 7% increase year over year.

A Growing Mid-Level Talent Shortage

While it’s encouraging to see new talent entering the profession, there is growing concern around the mid-senior pipeline. Many businesses are struggling to find experienced team leaders, supervisors, and senior specialists.

⏳ 25% of payroll professionals have over 20 years of experience – but few are ready to replace them as they exit the workforce.

“The mid-level talent shortage in payroll is a pressing issue. Employers need to be strategic and proactive to develop internal talent and maintain payroll continuity.”
– Joe Middleton, Associate Director

Building long-term resilience means prioritising upskilling, internal progression, and succession planning – before gaps start to affect compliance or accuracy.

Salary Growth Continues – But Reviews Matter More

Compensation is still king, but the method of increasing pay is changing. The guide shows that most salary increases are being driven by external moves, not internal promotions. That presents a risk for employers who delay reviews or fail to communicate progression opportunities.

📈 76% of professionals who received a recent salary review also received a raise – a direct link between engagement and retention.

Timely salary conversations are no longer just a nice-to-have. They are critical to holding onto experienced professionals who now have more visibility of market rates than ever.

Flexibility Is a Top Priority for Payroll Talent

Workplace flexibility continues to rank highly in jobseekers’ priorities. While some businesses are rolling back hybrid options, our findings suggest that doing so may hurt retention.

🏠 41% of payroll professionals currently work in hybrid roles – and report the highest satisfaction levels.

Today’s top candidates want balance, not burnout. For some, that means hybrid or remote work. For others, it means flexible hours, a shorter commute, or a better work-life structure. If your workplace model has changed, now is the time to evaluate how it’s landing with your payroll team.

Contract Hiring Is Gaining Ground

With system upgrades and process overhauls on the rise, contract hiring has surged. Businesses are tapping into interim talent to lead implementations, manage transitions, and provide stop-gap support for stretched teams.

💰 Nearly 1 in 3 businesses are currently investing in payroll system upgrades.

“We’re seeing unprecedented demand for contract payroll professionals, especially those skilled in payroll software systems like UKG, Dayforce, and Workday. It’s a candidate-led market offering excellent opportunities for both talent and businesses.”
– Michelle Dunnill, Associate Director

For employers, contract recruitment offers flexibility, speed, and access to niche skill sets – without the long-term commitment of a permanent hire.

Benefits Are Becoming a Key Differentiator

Salary remains the most important factor in career moves – but it’s no longer the only one. Flexible leave, paid tuition, and wellbeing support are now essential parts of the total reward conversation.

🥉 Benefits now rank third in importance to jobseekers – behind salary and flexible working.

Professionals are increasingly willing to trade salary for more time off, better learning opportunities, or a stronger workplace culture. Companies that adjust their packages to reflect this will have a clear edge in a competitive hiring market.

Download the Full Guide

This year’s Canada Payroll Salary Guide is essential reading for anyone hiring, managing, or working in payroll. It covers:

• Salary benchmarks by role and province
• Market trends for both permanent and contract hiring
• Candidate motivators and benefit preferences
• Insights into hybrid working and return-to-office challenges
• Data-backed recommendations for employers navigating today’s talent market

Get your copy now:

Download the 2025/26 Canada Payroll Salary Guide to start shaping your payroll strategy with real market insight.

For tailored support or guidance on your next hire, contact the Portfolio Payroll Canada team. We’re here to help you secure the talent you need – and support the people behind every paycheque