The GPCI notes the ten countries most impacted are 29% more complex due to three key factors required in their payroll processes: mandatory deductions, social security calculations and types of governmental mandatory reporting. 

The study also demonstrates an increase in complexity among governments that have implemented new payroll requirements to support employees’ rights and wellbeing. 

Compared to its 2021 ranking, the UK has increased in complexity by eight points, moving from thirty-first into the twenty-third spot in 2023. While some of the payroll complexity can be attributed to regulations aimed at protecting employee wellbeing, working conditions and pay, others may relate to taxes, social security, or other areas that don’t directly relate to employee protection.

The 2023 study highlights the workplace evolution on payroll since the 2021 GPCI and the progress made by organisations to manage payroll complexity. 

Organisations have demonstrated that by investing in payroll strategies and technologies to support employee-led cultures with earned wage access, transparent calculations and diverse benefits, they are able to simplify their infrastructure. 

As a result of these types of investments, the 2023 GPCI shows a 6% reduction in payroll complexity compared to 2021, driven by technology and process innovations. 

Cesar Jelvez, chief professional services and global payroll officer at Alight, said: “Each country has unique payroll structures, regulations and requirements, making it increasingly difficult for multi-national organisations to stay apprised of changing payroll regulations and evolving employee needs,”

“Organisations that lack the agility to deliver an effective payroll process are at risk of reputational damage, payroll errors, non-compliance, and failures when it comes to ensuring employee wellbeing.”

“Multi-national companies face considerable complexity in managing global payroll and having a partner that can help them standardise and simplify payroll processes across countries is indispensable.”