Xero Payroll vs Employment Hero
Verified ratings, real UK pricing and the compliance detail, weighed side by side — with a written verdict at the end.
Xero Payroll
Payroll Software
- United Kingdom
- Ireland
- Live Chat
- Knowledge Base
- Forum
Employment Hero
Payroll Software
- United Kingdom
- Australia
- New Zealand
- Singapore
- Malaysia
- Phone
- Live Chat
- Knowledge Base
- Forum
Evenly matched on verified reviews — 4.1 against 4.1. Price and fit will decide this one, not the score.
The short version
What each one costs and how each one rates, side by side. Only the rows where leading means something are marked; vendor and availability are in the overview above.
| Detail | Xero Payroll | Employment Hero |
|---|---|---|
| What it costs | ||
| Starting priceLowest paid tier, excluding VAT | £1.50/user/month | £3/user/month |
| Free version | NoNo | YesYes |
| Free trial | YesYes | YesYes |
| How it rates | ||
| Overall ratingMean of verified Assaylist reviews | 4.1 | 4.1 |
| Verified reviewsVolume is evidence, not a score — this row is not a contest | 225 reviews | 273 reviews |
Highlighted where one clearly leads. Rows without a highlight are not a contest.
How reviewers score them
Across the four dimensions we ask every reviewer about — and, below, the star split each average is built from.
- Xero Payroll
- Employment Hero
| Dimension | Xero Payroll | Employment Hero | Gap |
|---|---|---|---|
| Ease of use | 4.0 | 3.9 | 0.1 to Xero Payroll |
| Value for money | 4.0 | 3.9 | 0.1 to Xero Payroll |
| Customer support | 4.0 | 4.0 | Level |
| Functionality | 4.0 | 3.9 | 0.1 to Xero Payroll |
What each average is made of
Two products can share an average and not share a reputation. These bars show the star split behind each score.
| Product | 5 star | 4 star | 3 star | 2 star | 1 star |
|---|---|---|---|---|---|
| Xero Payroll | 44% (100 reviews) | 32% (72 reviews) | 16% (35 reviews) | 6% (14 reviews) | 2% (4 reviews) |
| Employment Hero | 42% (114 reviews) | 35% (95 reviews) | 12% (33 reviews) | 10% (26 reviews) | 2% (5 reviews) |
Feature by feature
Everything either vendor publishes, split into what separates them and what they share.
- Only Xero Payroll
- 947%
- Only Employment Hero
- 1053%
19 features listed across both products.
What only one of them does
Xero Payroll
9- Annual legislative updates
- Automatic payroll journal posting
- Employee self service app
- Holiday tracking
+ 5 more in the table below
Employment Hero
10- Automatic enrolment
- Employee app
- Employee benefits marketplace
- HR records and leave management
+ 6 more in the table below
| Detail | Xero Payroll | Employment Hero |
|---|---|---|
| Where they differ · 19 | ||
| Annual legislative updates | YesYes | NoNo |
| Automatic payroll journal posting | YesYes | NoNo |
| Employee self service app | YesYes | NoNo |
| Holiday tracking | YesYes | NoNo |
| Payslips and P60s | YesYes | NoNo |
| Pension auto enrolment and assessment | YesYes | NoNo |
| Pension provider connections | YesYes | NoNo |
| RTI submissions to HMRC | YesYes | NoNo |
| Statutory sick and parental pay | YesYes | NoNo |
| Automatic enrolment | NoNo | YesYes |
| Employee app | NoNo | YesYes |
| Employee benefits marketplace | NoNo | YesYes |
| HR records and leave management | NoNo | YesYes |
| Integrations | NoNo | YesYes |
| Onboarding and contracts | NoNo | YesYes |
| Performance and engagement | NoNo | YesYes |
| Reporting | NoNo | YesYes |
| Right to work record keeping | NoNo | YesYes |
| RTI payroll with a free tier | NoNo | YesYes |
A dash means the vendor has not published a feature list — which is not the same as the feature being unavailable.
How they handle UK obligations
Checked against the vendor's own documentation or HMRC's published list. A dash means we have not verified it — never that it is missing.
| Detail | Xero Payroll | Employment Hero |
|---|---|---|
| Verified against vendor documentation | ||
| RTI-compliant payroll | YesYes | YesYes |
| Pension auto-enrolment | YesYes | YesYes |
| UK-based support | UK support team | UK support team |
What each tier costs
Both line-ups on one ladder, so the middle tier on one side sits next to the middle tier on the other.
Xero Payroll
Employment Hero
On the Ignite plan
£1.50/user/month
- Priced per person
- RTI submissions
- Pension auto enrolment
Free Payroll
FreeLower
- Compliant RTI payroll at no software cost
- Automatic enrolment
- Employee self serve
Included with Grow
FreeLower
- Payroll for 1 person included
- Additional people charged per person
Core Payroll
£3/user/month
- Minimum £30 a month
- Advanced payroll features
- Integrations
Included with Comprehensive
FreeLower
- Payroll for 5 people included
HR Essentials
£4/user/month
- Minimum £40 a month
- Onboarding and HR records
- Leave management
Rungs are matched by position in each vendor’s own line-up, not by what the tiers include — an entry plan on one side may cover more than the other. Prices exclude VAT unless stated, and per-seat plans are quoted per seat. Always confirm on the vendor’s own site.
Which should you choose?
Two answers, because there are two right ones depending on what you need.
Choose Xero Payroll if
- It costs less to get started — £1.50/user/month against £3/user/month.
- It lists 9 features Employment Hero does not, including annual legislative updates.
Choose Employment Hero if
- There is a free tier you can stay on, which Xero Payroll does not offer.
- It lists 10 features Xero Payroll does not, including automatic enrolment.
On verified Assaylist reviews, Xero Payroll currently rates 4.1 against 4.1 for Employment Hero. That gap is not the whole story: Xero Payroll starts at £1.50/user/month and Employment Hero at £3/user/month, so the right answer depends on the tier you actually need and on which one handles your UK obligations. Read both profiles before you commit, and confirm current pricing on the vendor's own site.
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