Irish Payroll Trends for 2025: What to Expect

As we step into 2025, the payroll landscape for Irish businesses is transforming at an unprecedented pace, driven by advances in technology, evolving regulatory frameworks, and shifting workforce expectations. With a new focus on tech integration, the move to cloud, and compliance across the board, the year ahead will be a busy one. Payroll is a critical business function impacting every corner of the business and with the right payroll strategy you really can make strides to transform your business.  In this blog, we explore the key trends shaping payroll in 2025—from software integration to compliance and on-cloud solutions. Whether you're looking to future-proof your business, enhance operational efficiency, or better support your workforce, these insights will help you navigate the year ahead with confidence.  

 

s with much of our lives, payroll software is making a concentrated shift from on-premises to cloud migration. Our MegaPay On-Cloud software is one of many techonolgy platforms undergoing this move, to benefit from enhanced data security among other benefits.  

By moving to the cloud, you instantly employ enterprise grade data centres through Microsoft Azure, with data stored in Dublin and backed up in Amsterdam. A round-the-clock security operations centre (SOC) constantly monitors the entire cloud infrastructure. 

Additionally, cloud migration comes with reduced costs. Maintaining backups, server patching and software upgrades are no longer your team’s responsibility, as we do this for you. This enables you to save on the long-term staff costs involved in maintaining physical software. For larger corporations, the sheer volume of sensitive data means on-premises software requires round-the-clock monitoring and timely backups to ensure optimal security. 

The most common way attackers get into networks is through phishing and email-borne threats. The attacks almost always enter through user workstations. When you’re hosted in the cloud, all of your workstations are completely segmented. In the cloud, users aren’t sitting on the corporate network where the data lives.  

Wherever your team is based, the cloud allows flexibility to work anytime, anywhere. With on-premises software, VPNs or other workarounds need to be configured to enable flexible working. MegaPay On-Cloud is easily deployed for remote working environments, without impacting security. 

Learn more about cloud migration here: MegaPay On-Cloud Benefits Brochure | SD Worx 

 

Next year, we are going to hear a lot about Pension Auto-Enrolment in Ireland. Due to come into effect on September 30th, 2025, Auto-Enrolment will affect both employers and employees across Ireland.  

Auto-Enrolment is a scheme by which employees who are not already paying into a pension saving scheme will be automatically enrolled. 

Those who will be will be automatically enrolled are employees who are: 

• Aged between 23 and 60. 
• Not currently part of a pension plan. 
• Earning €20,000 or more per year. 

If an employee earns less than €20,000 per year or isn’t aged between 23 and 60, they can choose to join the pension plan if they’re not already part of a pension scheme. Regarding the maximum contribution, Citizens Information states that “both an employer’s and the government’s contributions are capped at €80,000 gross annual salary. This means for the first three years; the maximum amount an employer can contribute is €1,200 a year. This is because 1.5% of €80,000 is €1,200. The maximum amount the Government can contribute is €400 a year, which is 0.5% of €80,000.” 

What this means is that, if an employee earns over €80,000, they can still contribute to the scheme. However, their employer and the government won't match their contributions on any income over €80,000. 

Read also: Auto-Enrolment Ireland: What Employers Need to Know | SD Worx 

 

The clever integration of software when it comes to payroll technology is only set to become more vital to the successful running of your business. With an initial outlay of cost in terms of time and money, the benefits set to be reaped are endless. With systems in communication, the accuracy and efficiency of work is second to none.  

This will become increasingly important as different reports become mandatory over the coming years. Having a fluent integration between systems ensures fewer repetitive tasks for your employees to complete, and less of a chance of human error, giving employees more time to focus on valuable tasks. 

Read also: Payroll Software Integration and the Payroll Navigator | SD Worx 

 

Over the course of the next few years, it’s clear that businesses in Ireland will align themselves with global Environmental, Social, and Governance (ESG) goals. Payroll is emerging as a critical area for driving sustainability and ethical practices, and now plays a pivotal role in ensuring companies meet their ESG commitments, from reducing environmental impact to promoting pay equity and adhering to stringent governance standards. 

Irish businesses are embracing greener payroll practices, such as transitioning to digital payslips and paperless systems, which help reduce paper waste and lower operational costs. Coupled with payroll solutions that support remote and hybrid working arrangements, these measures not only foster sustainability but also cater to employee preferences for flexibility. 

In Ireland, the implementation of Gender Pay Gap Reporting and the upcoming EU Pay Transparency Directive has pushed companies to ensure fair and transparent compensation structures. While Ireland has already put legislation in place around Gender Pay Gap Reporting, there are many other steps which companies will be compelled to take to remain compliant. Before an employee is hired, there will need to be full transparency provided around the offered salary, and an employee cannot be asked about previous salary during the recruitment process and pay structures and progression criteria must be made transparent and accessible. 

In 2025, companies with over 50 employees must factor in Gender Pay Gap reporting, to lead us in 2026 to full compliance with the EU Pay Transparency Directive. 

 

Governance within payroll focuses on maintaining compliance with evolving regulations, such as GDPR and Ireland’s strict data protection laws. Ethical governance also involves ensuring the secure handling of sensitive employee data through robust cybersecurity measures and adherence to local tax and pension laws.  

By embedding ESG principles into payroll, Irish businesses can build trust among employees, attract top talent, and strengthen their reputation as socially responsible employers. As the ESG movement continues to gain momentum, companies with payroll systems designed to support these goals will find themselves better equipped to meet the demands of an increasingly conscientious workforce and society. 

 

AI vs. Automation 

In discussions about HR technology, 'automation' and 'AI' are terms often used interchangeably, though they each play a different role.  Automation tackles repetitive tasks, while AI offers a deeper level of sophistication, learning from data and evolving continuously. In the realm of payroll, AI goes beyond simple execution; it involves learning, adaptation, and optimization to navigate the complexities of evolving regulations and corporate policies. However, to unlock AI's full potential, a strategic approach to data integration and structuring is imperative. It's not merely about having data; it's about having the right data—accurate, recent, and uniquely tailored. Without this foundation, even the most sophisticated AI models can falter. It's a journey of data transformation, requiring meticulous curation, cleaning, and integration to power AI applications.   

 2025 promises significant advancements in payroll—from leveraging cutting-edge technology to prioritising employee satisfaction. With upcoming auto-enrolment towards the end of next year requiring a good deal of preparation, a renewed interest in moving to on-cloud solutions for payroll and many other elements of business, and a continuing interest in employee development and satisfaction, which has never been more key, there’s plenty of trends and key issues to keep up-to-date with.  

With SD Worx Ireland, we are proud to keep close to the cutting edge of payroll transformation and continue to develop our trusted payroll solutions together with our ambitious clients.