The calendar is unforgiving. 31 December 2025 is the line in the sand for thousands of SAP Payroll customers. By then, guaranteed support for on-premise SAP ERP HCM Payroll will expire. Some clients will look at this as just another IT milestone, another compliance deadline to mark in the project plan. That view is too narrow. The real story here is not just about continuity. It is about the future of Payroll. Six clear options remain available to customers, but only one points toward real innovation: SAP SuccessFactors Employee Central Payroll. It is the only option that moves beyond maintaining the status quo and puts Payroll at the center of transformation, powered by artificial intelligence, SAP Joule, and modern automation.
Setting the stage: End of 2025 is the deadline for on-premise SAP ERP HCM Payroll customers
The calendar is unforgiving. 31 December 2025 is the line in the sand for thousands of SAP Payroll customers. By then, guaranteed support for on-premise SAP ERP HCM Payroll will expire.
Some clients will look at this as just another IT milestone, another compliance deadline to mark in the project plan. That view is too narrow.
The real story here is not just about continuity. It is about the future of Payroll. There are dozens of transformation pathways for customers, but only one points toward real innovation: SAP SuccessFactors Employee Central Payroll. It is the only option that moves beyond maintaining the status quo and puts Payroll at the center of transformation, powered by Artificial Intelligence, SAP Joule, and modern automation.
This blog covers both sides of the story. First, a reminder of the six most popular transformation paths. Then, a deeper look at what is new in 2025, specifically the practical AI-driven capabilities now available in Employee Central Payroll. Finally, a forward-looking perspective: why now is the moment to act, not just to prepare for the end of support, but to unlock Payroll as a source of insight and advantage.
Popular transformation options for SAP Payroll Customers
| Option | Name | Description | SAP Link | Action Needed |
|---|---|---|---|---|
| 1 |
SAP ERP HCM Payroll On-Premise |
Business As Usual SAP SuccessFactors has given a commitment to their approximately 9,000 on-premise SAP Payroll customers that they will not experience an interruption in their continuous world-class support, guaranteed until calendar year-end 2025. |
SAP Business Suite 7 Extension: What This Means for SAP ERP Human Capital Management Customers |
|
| 2 |
SAP ERP HCM Payroll On-Premise with extended support |
Business As Usual (BAU) with an extended support date SAP announced an extended maintenance for SAP Business Suite 7 by two additional years for mainstream maintenance until 2027. Customers who want to continue to use the SAP ERP HCM beyond 2027 will have an extended maintenance option, available beginning in 2028, until the end of 2030 for a premium of two percent above existing maintenance prices. |
SAP Business Suite 7 Extension: What This Means for SAP ERP Human Capital Management Customers |
Execute a contractual extension with your SAP Account Manager. |
| 3 |
SAP HCM for S/4HANA On-Premise (H4S4) |
Extend on-premise with an S/4HANA upgrade An offering for customers who wish to extend their current investment in SAP ERP HCM. This offering synced with the SAP S/4HANA release and can be deployed either within the SAP S/4HANA environment or run standalone. H4S4 will allow continued use of the on-premise SAP® talent solutions, including learning and recruiting (subject to licensing). This offering is not available for net new clients. |
Execute a contractual agreement with your SAP Account Manager and upgrade to S/4HANA. |
|
| 4 |
SAP ERP, Private Edition Transition option |
Designed for complex customers with special needs Available starting in 2028 and will be active for usage from 2031-2033. It is an additional and non-mandatory offering. Customers who are planning to complete their transformation journey by the end of 2030 will not need it. |
New Offering to Help Navigate Complex RISE with SAP Transformations |
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| 5 |
SAP S/4HANA Private Cloud Edition (PCE) |
Non-disruptive pathway to digital transformation This offering, aligned with the program, is part of SAP’s ongoing commitment to helping customers continue to get ROI from their on-premise SAP investment, while creating a bridge to the cloud and the future. This is a non-disruptive way to keep your HR, Payroll, Time, and/or Benefits via a cost-effective pathway to the cloud, while retaining the functional richness of your existing systems. This option involves migrating to an SAP S/4HANA Private Cloud Edition (S/4 PCE) subscription, moving your environment to SAP’s own data center or to a hyperscaler (Azure, GCP, AWS). A conversion from on-premise SAP ERP HCM licenses to PCE cloud subscriptions is also required. |
Execute a contractual agreement with your SAP Account Manager changing from a perpetual license to a subscription model, allow SAP to host your Payroll. |
|
| 6 |
SAP SuccessFactors Employee Central Payroll |
Innovation The current focus of innovation with approximately 1800+ customers and 52 local versions. And this option is SAP SuccessFactors. |
Execute a contractual agreement with your SAP Account Manager to purchase subscription licenses to ECP, lean into clean core methodologies, allow SAP to host your Payroll, eliminating infrastructure costs and upgrade to S/4HANA. |
The truth: Options provide time, not innovation
The first five paths are essentially time-buying exercises. They let you stay on familiar ground while deferring a more significant transformation. For some organizations, this is attractive. Projects are costly, IT resources are thin, and executive focus may be elsewhere. But deferral is not a strategy.
The sixth option, Employee Central Payroll, is the only one that does more than keep the lights on. It is where SAP is investing, where features are being rolled out, and where AI and automation are reshaping Payroll into something smarter. That is why the table may not have changed, but the context around it has.
What is new in 2025: Payroll meets AI
Here is what matters: SAP has embedded AI and Joule directly into Payroll operations. This is not just theory. It is live, and SAP customers are already using it.
- Natural language Payroll queries with Joule
Payroll teams and employees can simply ask: “Why is my net pay lower this month?” Joule responds with a clear, itemized explanation. That cuts down help desk calls and puts Payroll transparency in employees’ hands. - Automated anomaly detection
Payroll runs are now monitored by AI that flags outliers – missing deductions, unusual overtime, bank detail mismatches – before Payroll is finalized. Instead of reacting after payday, teams can fix issues in advance. - Real-time pay cycle dashboards
New dashboards track every stage of the pay cycle: approvals, processing, bottlenecks. This gives Payroll leaders visibility they never had on ECC. - Built-in compliance intelligence
Country-specific tax and labor law changes are monitored, with proactive updates. This lowers compliance risk without manual tracking. - Budget and cost alignment
Payroll now integrates with workforce planning. Leaders see salary spend against budget in real time, and make informed decisions mid-cycle. - Smarter retro-calculations
When promotions, backdated benefits, or corrections happen, Joule accelerates the retro Payroll process, saving hours of manual rework.
Why ECP is the only future-proof option
By now it should be clear: the table offers choices, but only one keeps you competitive. Here is why Employee Central Payroll is not just another system, but a future-proof investment:
- Employee experience: Payroll transparency builds trust. AI-driven explanations stop confusion before it becomes noise.
- Efficiency: Automation cuts the manual chase, freeing Payroll teams to focus on higher-value work.
- Compliance confidence: With 52 country versions and automated compliance intelligence, global operations become manageable.
- Scalability: AI features are not one-off add-ons. They are core to SAP’s roadmap, meaning your system evolves as the technology evolves.
Image credit SAP 2025 (sap.com)
Planning ahead: The 2025 decision
Every SAP customer has to pick a path. Some will stretch their on-premise systems, hoping for more time. Others will bridge with private editions. But the forward-looking organizations will see this moment differently.
2025 is not just about support ending. It is about transformation starting. Payroll has been treated as back-office administration for too long. With Joule and AI, it can finally be strategic: reducing risk, cutting cost, and giving leaders real-time visibility into workforce spend.
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