Payroll Manager Job Description & Salary in India (2025)

Keeping pace with the multiple payroll compliances is exhausting and overwhelming—but so important.

Payroll is the core of any business, as they have to pay their employees on time and adhere to the labour laws at the same time. It requires an amalgamation of accounting and legal skills. Even with a small mistake, companies may face financial and legal implications.

Therefore, a payroll manager is a must-invest job role for a company that makes sure the company is in compliance and in a healthy financial state. Here, explore the complete payroll manager job description, salary trends, and required skills in India for 2025. Learn why payroll managers are in high demand in India and a JD template for HRs to copy-paste.

What is a Payroll Manager?

Synonym of this role: ‘Head of Payroll.’

A payroll manager manages and executes strategies to run a payroll process that is both compliant and correct. They do so by following sound accounting skills, using labour laws knowledge, using digital tools like payroll software, and ensuring employees’ salaries are disbursed on time, every time. This includes managing time and attendance records, reviewing and approving timesheets, and creating accurate payroll reports that are crucial for audits and GST filing purposes.

Why Payroll Managers are in High Demand in India?

Payroll is the most painful process in any business. In labour-intensive sectors such as construction, it becomes an even more hectic and time-consuming task. Payroll management also requires a unique blend of accounting and labour law expertise. As a result, there is a growing demand for payroll managers, or ‘heads of payroll,’ who understand how to optimise this complex, error-prone process.

And this is not just a statement; the US Bureau of Labor Statistics (BLS) reports that labour costs accounted for 70.4% of total business expenses in September 2024, which is such an incredibly large expense that it highlights the need to manage payroll effectively. Another report by ADP explicitly states that around 57% of companies are affected by this shortage of payroll employees. In other words, there is an immense shortage of payroll professionals, which clearly indicates that the demand for payroll managers is high in India.

1. https://www.bls.gov/news.release/pdf/ecec.pdf
2. https://www.adp.com/-/media/adp/resourcehub/pdf/potential-payroll-survey-2024-us-en.pdf

Payroll Managers Skills

Next, you will get a brief of the required and preferred skills for the payroll manager position. The section will inform about education, certifications, and technical, hard, as well as soft skills to become a successful candidate. Read the details below!

Payroll Manager Prerequisites

• A bachelor’s degree in human resources, finance, or accounting is typically required for breaking into the payroll field.
• Courses and certifications from online resources from platforms like PayrollOrg, Udemy, or Udacity will give strength to your resume.

Qualifications to Be a Payroll Manager

• Knowledge of payroll software and advanced spreadsheets.
• Mastery on labour laws and compliance regulations.
• Experience in bulk data management and payroll processing.
• Understanding of how to analyse payroll data for accuracy and eliminate errors if exist.
• Knowledge of income tax regulations and how to implement practices to follow these regulations.

Payroll Manager Hard Skills

• Expertise in using payroll software and automation tools.
• Strategic and analytical skills to reconcile discrepancies and guarantee accurate calculations.
• Conforming to applicable tax reporting requirements and compliance needs.
• Building reports and manage them for internal audit or for GST return filing purposes.
• Curious and eager to learn new technology to keep payroll practices always updated.

Payroll Manager Soft Skills

• Excellent written and verbal communication skills for effective interaction with employees, management, and external parties like tax authorities and auditors.
• Strong attention to detail and cross-check ability to ensure every zero is in the right place.
• Problem-solving skills to address employee queries and resolve discrepancies.
• Adaptability to changing regulations and explaining them in simple terms whenever required.
• Collaboration among team members and across departments, including HR and finance.

Tools for Payroll Managers

• Payroll software (e.g., NYGGS Payroll Software)
• Spreadsheet applications (e.g., Microsoft Excel, Google Sheets)
• Time-tracking systems to create timesheets correctly.
• Compliance management tools
• Reporting and analytics software

What Does a Payroll Manager Do?

While payroll may just sound like a job for the calculation of salaries, a lot goes on behind the curtain. Payroll managers are responsible for a comprehensive suite of tasks ranging from the calculation of salaries, making employee-wise deductions, and processing error-free payrolls—all while keeping labour laws and regulations in mind. Some of their most important responsibilities include:

Responsibilities of Payroll Managers

• Preparation, analysis, and processing of the organisation’s payroll function.
• Collaborate with the finance and HR departments to implement the payroll policies.
• Conducting cross-checks, identifying errors, and saving their company from penalties.
• Building all payroll reporting documents and providing them in case of audits and GST filing.
• Verifying overtime hours, leaves, or absences to create an accurate balance transfer sheet.
• Directing and managing junior-level payroll staff to keep everyone on the same page.
• Collecting data and reporting on payroll trends, job costings, and other payroll aspects.
• Ensuring legal compliance and incorporating necessary adjustments into the employee salary structures.
• Stay informed about the changing regulations in the labour laws and communicate adjustments in simple terms.

Average Salary of Payroll Managers

A global payroll manager’s salary ranges from INR 16–30+ lakhs per annum in India, according to the job listing site Glassdoor. Of course, the salary package may vary based on different factors and levels of experience. For businesses looking to streamline payroll management, investing in salary management software can help ensure accurate and timely salary processing. Below is the breakdown of how much payroll managers earn in 5 major economies.

United States

• Average – USD 120,558 per year
• Entry Level – USD $84,871 per year
• Senior Level – USD $149,506 per year

China

• Average – USD 50,855 per year
• Entry Level – USD 36,187 per year
• Senior Level – USD 63,746 per year

Japan

• Average – USD 60,968 per year
• Entry Level – USD 42,857 per year
• Senior Level – USD 75,495 per year

Germany

• Average – USD 92,208 per year
• Entry Level – USD 64,912 per year
• Senior Level – USD 1,14,348 per year

India

• Average – USD 28,285 per year
• Entry Level – USD 20,219 per year
• Senior Level – USD 35,618 per year

United Kingdom

• Average – USD 83,073 per year
• Entry Level – USD 58,481 per year
• Senior Level – USD 1,03,020 per year

Please note:

* Currencies converted to USD.

* Salary data may vary with time.

* Source: (www.salaryexpert.com).

Payroll Manager Job Description Template

Feel free to copy. Run some changes as per your requirements.

We seek a dynamic and highly skilled payroll manager to join our team at [Company Nth].

As a payroll manager, you will be responsible for developing and implementing payroll strategies and processing compliant payroll for the employees. This includes the calculation of salary, setting up multiple salary structures based on job role, making sure that benefits deductions are correct, as well as answering any questions that employees or seniors may have about payroll.

Objectives of this role

• Developing and executing payroll for our thousands of employees spread across locations.

• Make sure that salary computation is as per local regulations and complies with Indian labour laws.

• Collaborate with the human resources and finance team to develop and optimise highly compliant payroll policies for each employee.

• Executing strategic and analytical skills to reconcile discrepancies and guarantee accurate calculations.

• Building reports and managing them for internal audit or for GST return filing purposes.

• Have great communication skills so that you can answer complex payroll concepts in simple terms when required.
• Have great organisational and leadership skills.

Your tasks

• Oversee and direct payroll procedures.

• Ensure compliance with applicable laws and payroll tax obligations.

• Supervise and coach the payroll team.

• Coordinate timekeeping and payroll systems.

• Oversee the processing of payroll changes (e.g., new hires, terminations, raises) and system upgrades.

• Liaise with auditors and manage payroll tax audits.

• Maintain accurate records and prepare reports.
• Resolve issues and answer payroll-related questions.

Required skills and qualifications

• A bachelor’s degree in human resource management, accounting, or a related field.

• Relevant payroll certifications from online platforms are a plus.

• 5+ years of experience as a payroll manager or a similar payroll-focused role.

• In-depth knowledge of payroll best practices, labour laws and regulations that are associated with employee wages, with a strong understanding of the Indian payroll landscape.

• Proficiency with payroll software (e.g., NYGGS payroll) and analytics tools like MS Excel or Google Sheets.

• Willing to learn new payroll automation tools to optimise the practices and adapt to the changing regulations.

• Strong analytical skills and the ability to interpret data and make data-driven decisions.

• Excellent communication and interpersonal skills to collaborate effectively with cross-functional teams.

Final Thoughts: Payroll Software or Payroll Managers

When a business owner hires employees, the first thing that comes to mind is payroll. It directly means that payroll and reporting are core requirements of everyday business life.

Because payroll is time-eating and prone to error, entrepreneurs and small businesses should consider hiring an experienced payroll manager or investing in payroll software.

For smaller companies, a payroll management system such as NYGGS Payroll software may be sufficient to handle all payroll requirements. However, in large organisations, payroll becomes much more complex due to the large number of employees spread across multiple locations. This is where the combination of a payroll manager and advanced payroll software is so powerful that the process is faster, with no loss of accuracy and compliance.

NYGGS software automates payroll processes within an organisation, handling tasks such as payroll calculation, tax deduction, and pay slip distribution in-house through a centralised platform. The software can be integrated with other HRMS modules to provide a hire-to-retire software solution. ADP’s survey also concludes that “more than 9 in 10 global business leaders (94%) say they would like their payroll software integrated with all HR systems.”

So what are you waiting for? Allow payroll managers to benefit from the automation of time-consuming, repetitive calculations using software, a combination that provides organisations with a ‘dispute-free payroll’ title.

Frequently Asked Questions (FAQs)