Bangalore, India : As India's businesses maintain steady economic
growth, prioritising employee financial well-being has become a key focus for
HR and payroll departments in 2025. According to the "Future of Pay in
India 2025" report by ADP, a
leading global technology company specialising in human capital management
(HCM) solutions, 46% of organisations in India have identified the expansion of
financial well-being programs to better support their workforce as their top
priority this year.
The report highlights that growing economic
pressures and evolving employee expectations are prompting organisations to
rethink their approach to payroll. Financial stress is increasingly recognised
as a major factor impacting employee productivity, engagement and retention.
More than half of surveyed business leaders (55%) acknowledged financial stress
reduction as a key area where payroll systems can positively influence employee
experience.
Managing Director of ADP India and Southeast
Asia, Rahul Goyal, said, “Financial well-being is not merely about increasing
pay; it is about empowering employees with the right knowledge and tools.
Ensuring employees understand financial, tax and payroll processes when joining
the company fosters long-term financial security. Regular coaching and
education sessions can further build confidence and enable employees to make
informed financial decisions.”
Other key findings from the report:
- Financial well-being as a strategic
imperative: Companies
are adopting flexible pay models, salary-linked financial support and
personalised benefits aligned with employees’ life stages. Nearly
one-third (30%) of organisations are introducing flexible pay models as
the workforce demands more financial flexibility, such as
performance-based compensation and access to loans.
- Compliance complexity: 65% of payroll leaders say avoiding
compliance risk is very challenging. Payroll teams are under mounting
pressure to navigate evolving tax structures, multi-state or cross-border
regulations, and the upcoming wage code reforms, prompting a shift towards
automated governance frameworks and payroll technology solutions.
- Payroll modernisation: Organisations are investing in modern
payroll technologies to enhance efficiency, enhance data integration and
ensure data security and privacy, recognising that payroll holds critical
employee data. Employees now expect a user experience comparable to
consumer-grade standards, complete with advanced features and
functionalities to help them navigate the ever-changing compliance
landscape.
However, 30% of organisations cite scalability
and customisation challenges, while 28% identify high costs as barriers to
widespread adoption. Consequently, only 12% of organisations report having a
payroll function fully equipped to support future workforce demands.
Goyal continued, “The conversation around
payroll has shifted—today, it’s no longer just about getting salaries out on
time but a key touchpoint of employee well-being, business agility and trust.
As organisations navigate increasing regulatory complexities and workforce shifts,
leaders must rethink traditional processes to stay ahead.
The findings from this report underscore an
urgent need for businesses to modernise payroll systems, not just for
efficiency, but to enhance compliance readiness and meet rising employee expectations.
At ADP, we aim to equip organisations with actionable insights and technology
to transform payroll into a strategic advantage in this fast-changing
landscape.”
The annual survey, conducted in collaboration
with People Matters this year, gathers insights from over 300 HR, payroll and
finance leaders on how Indian businesses are evolving their payroll strategies
to meet workforce demands. To download the full report, please visit here
About ADP
(NASDAQ – ADP)
Designing
better ways to work through cutting-edge products, premium services and
exceptional experiences that enable people to reach their full potential. HR,
Talent, Time Management, Benefits and Payroll. Informed by data and designed
for people. Learn more at ADP.com.
ADP, the
ADP logo, and Always Designing for People, ADP National Employment Report, ADP
Research Institute and ADP Research are trademarks of ADP, Inc. All other marks
are the property of their respective owners.
Copyright
© 2025 ADP, Inc. All rights reserved.
Media
Contacts:
Ying Wang
PR & Brand Voice Manager,
APAC, ADP
ying.wang@adp.com
Hardik
Sanghani
Senior Consultant, Hypertext,
India
hardik.sanghani@hypertext.co