The UK has been ranked among the most reliable countries globally for payroll accuracy, according to fresh analysis from the Global Payroll Alliance (GPA).
The organisation’s 2025 review of payroll efficiency found that UK employers recorded an average of just one error per 1,000 payslips processed – a performance that puts the country firmly within the top ten worldwide.
The findings highlight the UK’s strong payroll practices at a time when accuracy is under increasing scrutiny, with GPA data showing that mistakes remain far more common elsewhere. Across the globe, the average rate of errors was 4.35 per 1,000 payslips, with the Americas faring worst at 5.95, while the EMEA region recorded the lowest overall rate at 3.63.
Standing Out in Global Rankings
The UK’s score positions it alongside countries such as Bahrain and Kenya, which achieved flawless records of 0.0 errors, and Eastern European nations including Bulgaria (0.2), Egypt (0.2), and Romania (0.5).
The data, sourced from payroll technology provider Cloudpay, underscores the UK’s consistent ability to pay employees accurately and on time – a core responsibility for HR and finance departments and a key factor in maintaining trust between employers and their workforce.
Why Payroll Errors Happen
While the UK’s record is strong, GPA’s analysis underlines that payroll mistakes remain a risk for all organisations. These issues are broadly categorised into human error and system-related faults.
Human mistakes often occur when incorrect or incomplete data is supplied to payroll teams. Common examples include wrong employee bank details, misapplied tax codes, inaccurate national insurance numbers, or simple spelling errors in names. Manual data entry processes are also prone to underpayments where overtime, bonuses, or leave entitlements are missed, while pay adjustments linked to promotions or commission can be overlooked without robust checks.
System faults, meanwhile, stem from misconfigured payroll rules or formulas, leading to errors in areas such as pensions or holiday accruals. Poor integration between payroll platforms and other HR or finance systems can further disrupt accuracy. The risks are heightened by weak cybersecurity, which can expose systems to bugs or hacking attempts. Even routine software updates, if poorly tested, may inadvertently introduce new problems.
Industry Perspective
Melanie Pizzey, CEO and Founder of the Global Payroll Alliance, emphasised the wider implications of accuracy.
“Payroll is just as much about trust as it is numbers and money. If employees aren’t paid properly, morale drops straight away. If the issue continues, their loyalty will be severely tested. The UK’s impressive record of accuracy demonstrates what’s possible when payroll processes are well managed and properly resourced, but no-one can rest on their laurels because constant vigilance and updates are essential to stay up to date with technology.”
She also warned of the risks posed by cyber threats:
“In an age of increasing digital threats, it is essential for organisations to invest in robust, secure systems and ensure their payroll data is protected. Hackers have been proven to view payroll as a gateway into wider company systems, so accuracy must go hand in hand with cybersecurity. Getting payroll right requires diligence, the right technology, and a strong commitment to data integrity.”
The Broader Picture
The GPA’s findings come as organisations worldwide face mounting challenges in managing payroll across increasingly complex and digitised systems. The global average error rate of more than four per 1,000 payslips illustrates how even minor missteps can quickly multiply at scale, particularly in large enterprises handling thousands of transactions each month.
For businesses, the costs of inaccuracy are not only financial but reputational, with payroll errors damaging employee confidence and, in some cases, prompting staff turnover.
The UK’s success reflects a combination of established compliance frameworks, advanced payroll technology adoption, and strong professional expertise. However, experts caution that the low error rate is not a reason for complacency. As digital systems evolve, maintaining payroll integrity will require constant monitoring, regular system upgrades, and ongoing investment in both staff training and security infrastructure.