Payroll software is usually priced using a combination of a monthly base fee plus a cost per employee. For most small businesses, this works out at roughly €4 to €10 per employee per month, depending on features and provider.
Common Pricing Models
There are a few standard ways payroll software is priced:
- Per employee per month (PEPM)
You pay a fixed fee for each employee processed through payroll. This is the most common model and scales as your team grows. - Base fee + per employee
A monthly platform fee (often €40–€150) plus €5–€12 per employee. - Per payroll run
You’re charged each time payroll is processed, often €2–€15 per employee per run. - Flat monthly pricing
A fixed cost for smaller teams, regardless of employee count, usually with limits.
Typical Costs in Practice
| Business Size | Typical Monthly Cost | What’s Included |
|---|---|---|
| 1–10 employees | €70–€200 | Basic payroll, tax calculations |
| 10–50 employees | €150–€500 | Tax filing, reporting, direct deposit |
| 50+ employees | €500+ | Advanced features, integrations |
For example, a company with 20 employees might pay €150 to €300 per month depending on the level of automation and support included.
What Affects the Price
Several factors influence how much you pay:
- Number of employees
- Payroll frequency (weekly vs monthly)
- Level of automation, such as tax filing
- Additional features like HR tools or benefits management
- Support level or managed payroll services
Global payroll or multi-country compliance can increase costs significantly.
Practical Tip
Focus on the total cost, not just the per-employee price. A slightly higher monthly fee that includes tax filing and support can save time and reduce risk compared to a cheaper, manual setup.