From traditional payroll to Digital Payroll: 20 Years of Change and
The Role of Payroll Services in the Digital Age
18/08/2025
The shift from traditional payroll to digital payroll
Over the past two decades, Vietnam’s payroll systems have undergone a major transformation, from manual, paper-based payroll sheets to fast, optimized digital payroll systems. In the context of a rapidly expanding digital economy, the application of technology to payroll processes not only helps businesses optimize costs but also plays a key role in overall digital transformation.
History of payroll process changes in Vietnam
In the 2000s, most Vietnamese businesses still used traditional payroll sheets, calculated wages manually, and processed insurance contributions in a traditional way. However, by the late 2000s, with the development of accounting software and telecommunications, this process gradually became digitized, especially in FDI enterprises and large corporations.
The government has also encouraged comprehensive digital transformation. Under the National Digital Transformation Program to 2025, with a vision to 2030, businesses are supported with up to 50% of consulting costs for digital transformation, creating a favorable environment for digitizing processes such as payroll.
The digital transformation landscape in Vietnam
- The rapid growth of the digital economy, exceeding 20% annually, is enabling the enterprise technology sector to develop quickly.
- Strong internet and data infrastructure, with over 80% of households connected to fiber optic networks and 5G rollout underway.
- Electronic identification platforms like VNeID support citizen verification and legal compliance — part of the nationwide digital transformation effort.
Impact of digitization on payroll processes
- From decentralized to automated processes: By applying HR management software and payroll automation, businesses significantly reduce the time spent on payroll processing and tax filing.
- Enhanced security: Digital systems allow data encryption and clearly defined access permissions — a significant improvement over paper records, which are easily lost or accessed without authorization.
- Flexible integration – unified HRM & Payroll: Employee income, tax deductions, and social insurance can be automatically adjusted by region or updated deduction formulas — enabling HR teams to work more efficiently and reduce administrative errors.
The role of payroll services in the digital era
- Optimized compliance: Regulations on regional minimum wage, social insurance, and personal income tax are constantly updated. Digital service providers like NIC Global ensure payroll is always accurate and compliant with the latest laws.
- HR strategies for Gen Z: According to Vietnam Briefing, Gen Z is entering the workforce seeking flexibility, efficiency, and transparency through technology. They respond positively to transparent digital payslips accessible via portals and mobile apps.
- Cost control & operational acceleration: With automation systems, payroll processing time can be reduced by up to 70%, as seen in the case of a Hanoi FMCG company after outsourcing payroll services.
- Sustainability & scalability: Whether expanding operations or changing work regions, digital and outsourced payroll systems enable rapid adaptation with stable costs, scalable to business needs.
Payroll technology trends for 2025
- Application of AI & Auto-calculation to forecast errors and automatically update payroll formulas in line with new laws.
- Cloud-based payroll for fast access, powerful processing, and secure storage.
- Real-time reporting and smart dashboards to help leaders make instant decisions based on workforce costs.
NIC Global – Leading Payroll services in the digital transformation journey
With over 23 years of experience, NIC Global is a pioneer in payroll process digitization:
- Fully integrates tax, social insurance, and regional minimum wage regulations, automatically updated according to the latest laws.
- Uses secure, encrypted, and access-controlled digital platforms.
- Supports employees via portals for easy access to personal payslips.
- Provides analytical dashboards for workforce cost insights, helping leaders make real-time decisions.
- Commits to data security, cost optimization, and sustainable digital transformation goals.
From cumbersome traditional payroll books to flexible and efficient digital payslips, payroll processes have undergone a significant shift over the past two decades. In today’s era of strong digital transformation, outsourced payroll services — especially digital solutions from providers like NIC Global — have become a strategic key, helping businesses optimize operations, reduce legal risks, and enhance competitiveness.
For contact and support:
Facebook: NIC Global – Human Resource Solutions
LinkedIn: NIC Global Sourcing JSC
Website: www.nicvn.com
Email: info@nicvn.com
Hotline: (+84) 981.23.43.76
Address:
- Hanoi Office: No. 3A Thi Sach, Hai Ba Trung Ward, Hanoi, Vietnam
- Ho Chi Minh City Office: Dakao Center Building, 35 Mac Dinh Chi, Sai Gon Ward, Ho Chi Minh City, Vietnam
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