New research ranks UK 23rd of 35 countries for payroll complexity

16 December 2014

NGA Human Resources has published its Global Payroll Complexity Index 2014, showing Italy as the country with the greatest payroll complexity.

This research - based on the in-country expertise of more than 800 payroll experts across the world - provides insight on how complex it is to reward an international workforce.

According to the Index, the top 5 of most complex countries to run payroll are as follows:

1. Italy

2. Germany

3. France

4. Belgium

5. Australia

The UK is 23rd in the list, with Singapore featuring in last place.

NGA reports that “payroll complexity in Italy arises from the numerous calculations of social security and taxes, which can also vary by region and city. Additionally, legal changes happen very frequently and labour agreements vary widely across industries, organisations and employee categories (C-level, director, manager, white collar, etc.). Finally, monthly government reports and declarations are quite complex and require a high degree of detail.”

The easiest country is Singapore because “the information needed to calculate payroll is clear and easy, which creates an undisputable method for applying payroll rules. The Singapore government has also defined a very simple and straightforward tax calculation process, which requires minimal efforts from employers.”