Report also dispels negative stereotypes about Gen Z's financial habits
The cost of employee financial stress to Canadian businesses has soared to $69.5 billion in lost productivity each year, according to a recent report. That number is up by $15.6 billion from 2024.
Over half of all workers (51%) admit to spending at least 15 minutes per day thinking about their finances at work, up from 45% in 2024. And nearly one in four say financial stress has impacted their workplace performance
Financial stress is also linked to:
- decreased motivation (47%)
- strained workplace relationships (28%)
- increased absenteeism (33%).
However, the National Payroll Institute's survey also found that the proportion of financially stressed workers has declined from 41% in 2024 to 36% in 2025, marking the first improvement after four consecutive years of worsening trends.
At the same time, the share of employees considered financially comfortable has risen from 28% to 30%, according to the report, which is based on a survey of 2,320 working Canadians in May.
Renewed focus on saving
The Institute attributes these gains to a renewed focus on saving, with 51% of survey respondents reporting they tried to save more this year, up from 42% in 2024. Additionally, 29% of Canadians managed to save $10,000 or more in the past year, compared to 23% the previous year.
“It may be that the increased rates of savings that we’re seeing are a byproduct of the same headlines that suggest the financial health of Canadians should be floundering,” says Peter Tzanetakis, president and CEO of the National Payroll Institute. “Filled with uncertainty rooted in the rising costs of living, and the impacts of tariffs on both job security and the economy, savings are one way that Canadians may be preparing for future challenges.”
The report also dispels negative stereotypes about Gen Z’s financial habits. It found that Gen Z workers are demonstrating proactive financial behaviours, such as saving more and focusing on debt repayment. Gen Z workers save an average of 11% of each paycheque—higher than any other generation—and 30% reported saving $10,000 or more in the past year. While only 26% of Gen Z respondents feel confident they will be able to afford a home in their desired area within five years, they are less likely than Gen X or Millennials to spend over 40% of their income on housing.
The impact of payroll errors
Still, over half of working Canadians (51%) say they would struggle to pay their bills if their paycheque was delayed, according to a separate Employment Hero report based on a survey of 1,114 online adult Canadians conducted July 31 to Aug. 5, 2025.
In the past five years alone, 38% of working Canadians have faced a paycheque inaccuracy or delay—equal to roughly 7.8 million working Canadians. Of those who have experienced issues, 62% had an inaccuracy or delay with a few paycheques.
“When people don't get paid properly or on time, it’s not just a payroll error—it’s a broken promise. In today’s economy, where every dollar counts, Canadians can’t afford to be left hanging because of outdated, unreliable systems,” says Kevin Kliman, President of Canadian Business at Employment Hero. “These findings make one thing clear: payroll isn’t just paperwork, it’s the backbone of people’s financial stability and a foundation of trust between employers and their teams.”
On the employer side, payroll errors can also have significant consequences. Abour three-fourths (74%) of working Canadians would feel negatively toward their employer if their paycheque was delayed. Employees are also not jumping at the opportunity to right any overages—only 55% of these Canadians say they would definitely inform their employer if they were overpaid on a paycheque.
Despite Canadians’ current financial struggles, most are still looking to ensure financial wellness far into the future, according to a previous Sun Life report.
