Firmin Zocchetto, CEO and Co-founder at PayFit, looks at how this month’s employment shake-up will affect teams’ wellbeing and productivity, with steps to ease the pressure.
This month is set to be one of the busiest ever for business owners and the people they rely on to run payroll.
Increased rates of the National Minimum Wage, including the National Living wage, have already come into force, bringing into effect recommendations made by the Low Pay Commission last autumn.
Statutory Sick Pay (SSP) changes have also come into force, including SSP becoming a day-one right and Lower Earnings Limit being scrapped.
And on top of this, further changes are still to come, including day-one rights for paternity and parental leave, which are being phased in under the Employment Rights Act this year and next.
Collectively, it’s an employment shake-up that may be well overdue, but it’s giving end-of-year tax returns a run for their money. For a large corporate with a full finance team, it’s a headache. For an SME where payroll might sit with one person – or even the owner themselves – it could come at a cost to their wellbeing and productivity.
And for those still relying on manual processes – a reality that, even in 2026, remains surprisingly common – that strain risks tipping into something more unsustainable.
“Payroll paralysis”
What makes this situation particularly frustrating, however, is the fact that the warning signs were there well in advance. For some time, we have heard directly from businesses that are overwhelmed with the pressure of adapting to legislative shifts. But research from PayFit, conducted well ahead of the current reforms, found that 37% of employers reported payroll-related stress within their teams, with some experiencing what can only be described as “payroll paralysis”, whereby teams found themselves overwhelmed with ever-growing payroll tasks.
Considering the gravity of the changes now coming into force, that pressure is only set to worsen. If we don’t act now, there’s a real risk to the wellbeing of the people handling payroll, as well as company performance.
Practical steps on how to handle the changes
Tackling these stressors head-on is crucial for building healthier and productive work environments. With this in mind, consider the following:
Prioritise mental health support: With payroll and compliance pressures only set to increase, finance and HR teams are on the frontline, especially those that don’t have a dedicated payroll person. Stress can quickly build, focus fade, and errors increase, and putting wellbeing and productivity on the line.
Use tech to absorb the pressure of change – and remain compliant: Investing in systems that automate core payroll operations is a great way to address any legislative and administrative strain. First and foremost, automation creates much-needed breathing room, reducing the manual workload that is already stretching teams thin and allowing finance functions to focus on higher-value work. But it also brings consistency and accuracy at a time when the margin for error is shrinking.
Every manual input carries risk. A mistyped salary figure, an incorrect tax code or a missed pension contribution can lead to an unhappy employee, and, worse, penalties from HMRC. In fact, just last month, hundreds of employers were handed penalties for illegally underpaying workers.
Bring in interim support for intense finance periods: When year-end reporting, payroll peaks, or new legislative demands all land at once, the people handling payroll can feel like they’re spinning too many plates. Bringing in interim or temporary support doesn’t just lighten the load – it keeps the numbers accurate, the deadlines met, and the people intact. Just as HR turns to external help when the pressure spikes, finance teams can use extra capacity to navigate the crunch without burning out the permanent staff who keep the business running.
For businesses, April isn’t just another busy month – it’s a full-on stress test. With a number of changes already in force, and more currently being rolled out, payroll has never been more complicated. But teams that make the most of technology, protect their wellbeing, and call in extra help when needed won’t just get through this month; they’ll come out better prepared for the year ahead too.