SAP HCM Payroll goes Cloud: You say goodbye, we say hello!

For decades, thousands of companies in Germany, Austria, and Switzerland have relied on SAP ERP HCM Payroll for payroll accounting, especially as part of SAP Business Suite (ECC). This means that sooner or later, they will have to say goodbye to this proven solution, because the paid extended maintenance phase will begin in 2028. It will end on December 31, 2030, when millions of New Year's Eve fireworks light up the sky and herald the turn of the year. Then there will be no more updates, not even security patches. An era is coming to an end – with one last big fireworks display.

Companies that still use SAP ERP HCM Payroll as part of SAP ECC should not put off the switch. On the one hand, developing an SAP payroll strategy and implementing an alternative solution takes valuable time. On the other hand, it is foreseeable that the availability of qualified support and expertise will become scarcer as the end of maintenance approaches.

However, the pressure to act does not stem solely from the end of the regular support window in 2027. Technological progress also plays a role: modern applications – for example, in the context of AI – will only be available in cloud-based environments such as S/4HANA Private Cloud Edition in the future. There are currently no plans for such further developments for classic on-premise solutions. So if you want to stay competitive in the long term, you need systems that can keep up with these changes.

It's totally understandable that a lot of companies are hesitant about making the switch. Over the years, companies have invested in SAP ERP HCM Payroll – in technology, processes, and internal knowledge. This has created a strong attachment to the existing solution – and a need for security. In addition, payroll is a business-critical process. Even small discrepancies can have far-reaching consequences. Migration can seem risky, especially when expectations are high and resources are limited.

In fact, when migrating to SAP ECP, much remains the same: The solution is based on familiar technology, the accounting logic remains the same – only the operating location changes. The user interfaces are largely identical, and the functionality is familiar. What changes is the operating model: away from on-premise operation to a cloud infrastructure with new responsibilities, processes, and interfaces. This requires a rethink – but not a complete relearning from scratch.

And that is precisely where the opportunity lies. The switch to payroll in the cloud under S/4HANA or in the form of ECP in conjunction with SuccessFactors opens up new possibilities: The system architecture becomes more transparent, legacy issues can be questioned, and existing processes can be restructured. There are also strategic advantages in IT: standardization, scalability, and a clearer separation of operation and further development. So the crucial question is: Which strategy suits which organization – and what is the best way to get started?

There are currently two primary solutions available as part of an SAP payroll strategy: switching to SAP HCM for S/4HANA or to SAP Employee Central Payroll (ECP) in conjunction with SuccessFactors. Both variants meet the requirements of modern payroll scenarios – but differ significantly in terms of architecture, operating model, and strategic integration.

SAP HCM for S/4HANA

SAP HCM for S/4HANA is the technical continuation of the classic SAP HCM. It is offered in two variants:

• as a classic on-premise installation,
• or as a private cloud edition (including HCM, with AI options and ML access via SAP Best Practices).

The choice between these two models is not just a question of payroll, but part of a broader S/4HANA strategy. In the private cloud, for example, companies benefit from familiar interfaces, established processes, and additional functional depth. Those planning to move to the public cloud, on the other hand, are more likely to consider alternative HR combinations, such as SuccessFactors EC + ECP.

SAP Employee Central Payroll (ECP)

From a technical perspective, SAP ECP is not a new system, but is based on the proven SAP ERP HCM Payroll, operated in the cloud version. Access is usually via SAP GUI, WEBGUI, and/or in modern mashup scenarios in conjunction with SuccessFactors EC. The actual modernization takes place via the leading SuccessFactors Employee Central, which acts as a front end for master and transaction data. ECP complements this cloud environment with an integrated payroll component – with familiar processes but new operating logic.

Both options – HCM for S/4HANA and ECP – are powerful and can be maintained over many years. Which solution is right depends largely on the strategic vision, the desired cloud operating model, and the existing HR IT landscape. The decisive factor is not only the technical perspective, but above all the integration into the overall transformation. The following overview shows the most important differences at a glance.

SAP payroll options compared: HCM for S/4HANA vs. ECP

Die Wahl des passenden Payroll-Modells hängt nicht allein von den technischen Eigenschaften der Lösungen ab – sondern vor allem vom individuellen Ausgangspunkt und der strategischen Zielrichtung. Ist bereits Erfahrung mit hybriden Systemlandschaften vorhanden? Wird ein Side-by-Side-Szenario angestrebt? Oder steht eine Full-Cloud-Strategie im Raum? Je klarer das Zielbild, desto fundierter die Entscheidung. Erste Orientierung geben diese Überlegungen:

• Vorhandene Systemlandschaft: Unternehmen, die bereits SAP HCM im Einsatz haben und eine enge Verzahnung mit bestehenden Strukturen wünschen, tendieren häufig zu SAP HCM for S/4HANA.
• Flexibilitätsanforderungen: Wer stark auf mobile Szenarien, schnell anpassbare Prozesse und eine cloudzentrierte HR-Architektur setzt, sollte ECP im Verbund mit SuccessFactors EC in Betracht ziehen.
• Budget und Zeitrahmen: Bei engen Projektfristen oder limitiertem Budget kann SAP ECP durch schnelle Bereitstellung und vordefinierte Betriebsmodelle punkten – sofern die organisatorischen Voraussetzungen stimmen.

Der Abschied von SAP ERP HCM Payroll ist unausweichlich – aber kein Grund zur Sorge. Wer den Umstieg frühzeitig plant, schafft nicht nur Klarheit, sondern auch Gestaltungsspielraum: für modernere Strukturen, sauberere Prozesse und ein Betriebsmodell, das zur langfristigen IT-Strategie passt.

Ob SAP HCM for S/4HANA oder SAP ECP im Zusammenspiel mit SuccessFactors – beide Wege bieten Kontinuität in der Funktionalität, aber jeweils eigene Anforderungen und Spielräume. Der Schlüssel liegt darin, nicht nur technische Systeme zu migrieren, sondern die Gelegenheit zu nutzen, um bestehende Routinen kritisch zu hinterfragen und bewusst weiterzuentwickeln.

Mit einem strukturierten Migrationsansatz, einer belastbaren Zielarchitektur und enger Begleitung in der Einführungsphase lässt sich der Payroll-Wechsel sicher und zukunftsorientiert gestalten. Was bleibt, ist kein radikaler Neustart – sondern ein strategisch sinnvoller nächster Schritt.

Wie genau der Umstieg zu SAP HCM for S/4HANA oder ECP gelingt – und worauf es in der Praxis ankommt – beleuchten wir im Folgeartikel zu den konkreten Migrationspfaden und Erfolgsfaktoren, der demnächst veröffentlicht wird.