75% of Indian businesses impacted payroll staff shortage, the highest in APAC: ADP

• 28 May 2025
• TM Team
• 0 Comments

 India is facing the highest payroll staff shortage in the Asia-Pacific (APAC) region, with 75% of businesses reporting that their payroll services are affected by a lack of payroll professionals, according to the report “Potential of Pay 2025”. This survey, conducted by ADP, a leading global technology company specialising in human capital management (HCM) solutions, also indicates that 93% of businesses in India are looking to expand their payroll teams, highlighting a growing talent gap.

The survey, which polled senior payroll leaders at multinational companies with over 1,000 employees, identifies key pain points:

• Data quality and integrity are also a key concern for payroll professionals, with 48% of respondents looking to improve this in the next 2-3 years.
• 38% of businesses cite a lack of automated processes as the most common cause of payroll inaccuracies.
• Nearly half (45%) of organisations partner with global payroll providers when entering new markets to ensure compliance and efficiency.

Artificial Intelligence (AI) is central to overcoming these challenges. Over one in three (35%) Indian businesses identify AI adoption as the primary enabler for payroll innovation over the next two to three years – the highest in APAC – while 68% are integrating AI to streamline workflows and reduce reliance on manual processes.

“Payroll transformation is now a business imperative,” said Rahul Goyal, Managing Director, ADP India and Southeast Asia. “With rising compliance requirements and talent shortages, investing in AI-driven automation and strategic partnerships with global payroll partners are critical. These solutions not only enhance payroll accuracy and efficiency but also elevate employee experience and operational resilience.”