Canada’s Payroll Job Market: What’s Happening Right Now?

Posted April 2025

If you work in payroll or are thinking about making a move, you’re probably wondering – is it a good time to switch jobs? Are companies still hiring? What kind of roles are actually in demand?

Let me give you a real-world snapshot of what’s going on in the payroll job market from where I sit, working with employers and candidates across Canada (and a few beyond our borders too).

Hiring Activity: Back in Motion, But More Selective

We saw a slight pause in hiring toward the end of last year, as businesses focused on compliance, reconciliations, and closing the books. But as we’ve moved into Q2, hiring is picking back up. Many organizations with lean teams are realizing they simply can’t stretch their current resources any further. The urgency to fill critical payroll roles is real.

That said, it’s not a hiring free-for-all. Employers are being selective; they want the right fit, not just a warm body in the seat. There’s a bit of hesitation in some sectors tied to political uncertainty in the U.S., especially where operations are closely connected across the border. Still, payroll remains a non-negotiable function. You can delay hiring a marketer or a strategist, but you can’t skip payroll.

The good news? There’s a strong talent pool out there. Professionals are actively looking for opportunities where they can grow, upskill, and contribute more strategically.

Regional and Global Trends: Offshore Moves and Hiring Hesitation

Internationally, larger organizations are leaning into shared services and outsourcing, shifting payroll functions to more cost-effective locations like South America, India, and the Philippines. For example, one of our clients began replacing each departing payroll team member with an offshore hire – a trend we expect to continue.

Within North America, the uncertain U.S. political landscape is creating hiring hesitations, especially for companies heavily tied to cross-border operations. Even so, the domestic payroll job market in Canada remains steady.

Hot Roles and In-Demand Skills

Mid-level positions are currently the most in-demand. Roles such as senior payroll specialists, team leads, and supervisors are proving the hardest to fill. Many teams have strong entry-level and senior talent but lack experienced professionals to bridge the gap between them.

Certifications like the Payroll Compliance Practitioner (PCP) and Payroll Leadership Professional (PLP) are highly valued, and in some cases, mandatory. Employers may be willing to support certification after hiring, but only if candidates commit to completing it.

On the technical side, system familiarity is essential. Employers prioritize candidates who already know their software. Advanced Excel skills are also crucial, as many companies still rely on spreadsheets for manual data manipulation despite having automated systems in place.

The Rise of Cross-Functional Talent

Soft skills and cross-functional experience are becoming major hiring differentiators. Strong communication is critical, particularly when payroll professionals are dealing with sensitive topics like pay discrepancies or compliance issues.

Experience with HRIS systems, some background in accounting, or even a basic understanding of benefits processing adds significant value. These extra skills help candidates stand out, especially as payroll becomes more integrated with other business functions.

Tech and Automation: Quietly Reshaping Roles

While artificial intelligence isn’t a major factor in the payroll job market yet, automation and system integration certainly are. Companies want professionals who can think critically about systems, identify inefficiencies, and help implement smarter processes.

Many organizations have already invested in powerful payroll tools but aren’t fully leveraging them. Payroll professionals who can lead process improvements – like automating ledger transfers into accounting systems – are in high demand. Even if you’re not working directly with AI, being tech-comfortable and future-focused is becoming more important every day.

Salaries: Stabilizing, Not Surging

After a period of rapid increases, payroll salaries are now stabilizing. Employers are adhering more strictly to defined salary bands, even in competitive job markets.

Here’s a breakdown of average salary ranges across Canada based on our most recent data:

• Payroll Administrator: $50,000–$86,000 (Average: $70,000)
• Senior Payroll Specialist: $66,500–$98,000 (Average: $85,000)
• Payroll Manager: $75,000–$140,000 (Average: $100,000)
• Head of Payroll / Director: $85,000–$170,000+ (Average: $120,000)

This data will be featured in full in our latest Payroll Salary Guide 2025/26 launching at the upcoming NPI Payroll Conference in June, but you can still grab last years data here ahead of that.

Flexibility: A Growing Point of Tension

Flexible work arrangements are top of mind for candidates, but we’re seeing some pullback from employers. There’s a growing push to increase in-office days, which is creating tension.

For many payroll professionals – especially those with caregiving responsibilities or long commutes – flexibility is non-negotiable. Some candidates expect to leave early for school pickups and complete work remotely. This creates challenges when companies enforce stricter return-to-office policies.

What Candidates Are Asking

The number one question we hear in today’s job market is, “How many days do I need to be in the office?” Flexibility and work-life balance consistently top the list of concerns.

Beyond that, many candidates seem unprepared for the current hiring landscape. Structured, multi-stage interviews are back, and in-person meetings are becoming more common again. Some candidates find themselves caught off guard by how formal things have become post-pandemic.

Pro tip: prepare like it’s 2019 but carry yourself like it’s 2025.

Joe’s Advice: Stay Curious, Stay Visible

If you’re looking to advance your career in payroll, don’t be afraid to stretch yourself. Try out new systems. Take on different types of payroll – whether it’s multi-provincial or cross-border. Learn the ins and outs of integrations, reporting, and compliance. The more you expose yourself to, the more valuable you become.

If you’re already working within a company, volunteer for new projects. Step up in areas that feel unfamiliar. Use the safety of your current role to experiment and grow.

Get involved with the National Payroll Institute, attend events like National Payroll Week, and build your network. The professionals who continue to evolve – in both knowledge and mindset – are the ones who thrive.

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.