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 per cent of organisations in India have identified the expansion of financial well-being programmes 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 per cent) 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:

However, 30 per cent of organisations cite scalability and customisation challenges, while 28 per cent identify high costs as barriers to widespread adoption. Consequently, only 12 per cent 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

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Ying Wang
PR & Brand Voice Manager, APAC, ADP
[email protected]

Hardik Sanghani
Senior Consultant, Hypertext, India
[email protected]