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Payroll Specialist salary in Birmingham, AL

Birmingham pays payroll specialists more than Alabama as a whole but less than the country. The median is $48,380 a year1: 4.8% above the Alabama statewide median of $46,170 and 17.0% below the US median of $58,260. That is in the bottom quarter of US areas (#393 of 486). With about 340 payroll specialists, 25% of the Alabama total, no area in Alabama employs more.

$4,032median pay per month in Birmingham
$5,202employer cost per month with benefits
$23.26median pay per hour
340people in this job in Birmingham

BLS occupation 43-3051, area Birmingham, AL. Data from the May 2025 release, checked 2026-10-15.

Pay in Birmingham against Alabama and the US

Range10thMedian90th
Birmingham, AL$35,790$48,380$65,140
Alabama$32,210$46,170$64,170
United States$39,500$58,260$81,350
10th to 90th percentilemiddle half (25th to 75th)median

The middle half of payroll specialists in Birmingham earns $42,840–$57,730. Pay is tightly grouped: the top tenth starts at $65,140, only 1.8 times the bottom tenth, against 2.1 times across the US, so the going rate is easier to read. From the 25th to the 75th percentile, the local range is only $14,890 wide, against $17,510 across Alabama and $21,610 nationally: employers in Birmingham pay within a narrower band.

What to budget for a payroll specialist here

Point in the local rangePer yearPer monthPer hourEmployer cost per year
10th percentile$35,790$2,982$17.21$46,181
25th percentile$42,840$3,570$20.60$55,277
Median$48,380$4,032$23.26$62,426
75th percentile$57,730$4,811$27.75$74,490
90th percentile$65,140$5,428$31.32$84,052

Pay climbs faster above the median than below it here: the 75th percentile is $9,350 over the median, the 25th only $5,540 under it. An offer at the 75th percentile adds about $12,065 a year in employer cost. These percentiles describe what people in the job earn locally, not experience levels, so place your offer by the tasks and seniority you need.

For scale, the US median of $58,260 falls between the 75th and 90th percentiles in Birmingham, and the Alabama statewide median of $46,170 falls between the 25th percentile and the median. An offer at the national rate would beat what three quarters of local payroll specialists earn.

What a hire really costs in Birmingham

Pay is only part of it. Benefits and payroll taxes other than paid leave are 22.5% of total compensation in US private industry2, which adds about $14,046 to the $48,380 median and brings it to $62,426 a year. Recruiting, equipment and office space come on top. Benefit levels vary by employer, so treat this as an estimate.

We place executive assistants, customer support and e-commerce staff today; for payroll specialists we answer within one business day whether we can help. Enter the monthly pay you have in mind to compare it with a local hire. The fee field shows our standard fee3; Deel's contractor plan is the default payroll tool4.

$62,426local hire, first year incl. benefits
$13,888remote hire, first year incl. fee
$48,538difference in year one
78%of the local cost saved

Other roles in Birmingham

Of the 16 roles we track in Birmingham, this one ranks #9 by median pay, between paralegals ($53,160) and bookkeepers ($47,330). Project Coordinator is the highest at $100,820.

The 5 roles closest in pay. All 16 roles in Birmingham, AL
RoleMedianvs payroll specialistJobs
Sales Development Representative
$60,040
+24.1%3,770
Paralegal
$53,160
+9.9%2,420
Payroll Specialist
$48,380
this role340
Bookkeeper
$47,330
-2.2%5,430
HR Assistant
$45,500
-6.0%180

Measured against the US median, payroll specialists rank #15 of the 16 roles we track in Birmingham (-17.0%), between paralegals (-15.5%) and marketing specialists (-21.0%). The typical role here is at -8.6%, so, measured against the US, payroll specialists cost less in Birmingham than the area's general pay level would suggest. Payroll specialists hold 0.6% of the jobs in the 15 of these roles with a job count in Birmingham, 0.7% across Alabama and 1.0% nationally. The job is a smaller part of the local workforce in these roles than it is nationally.

Other areas in Alabama

Across the 13 areas of Alabama with data for this job, the median runs from $38,550 in Dothan to $52,020 in Huntsville, a gap of $13,470 a year. No other area in Alabama has as many payroll specialists, and 11 of the other 12 pay less.

AreaMedianvs BirminghamJobs
Huntsville, AL
$52,020
+7.5%150
Birmingham, AL
$48,380
this area340
Decatur, AL
$46,810
-3.2%40
Montgomery, AL
$46,450
-4.0%130
Tuscaloosa, AL
$45,540
-5.9%40
Southwest Alabama (Nonmetro)
$45,430
-6.1%40
Mobile, AL
$45,280
-6.4%110

Birmingham against other US metro areas

By number of jobs, Birmingham is #66 of 482 US areas for this job. It is one of the larger markets for this job, yet its pay sits in the bottom quarter of US areas. Outside Alabama, Bangor and Terre Haute pay just above Birmingham and Pensacola-Ferry Pass and Wichita Falls just below. All four are within $130 a year of the median in Birmingham. Of the three markets with about as many payroll specialists, all three pay more.

Metro areaMedianvs BirminghamJobsClose in
Stockton-Lodi, CA
$61,230
+26.6%340jobs
Akron, OH
$55,960
+15.7%330jobs
Tucson, AZ
$49,090
+1.5%330jobs
Terre Haute, IN
$48,510
+0.3%70pay
Bangor, ME
$48,490
+0.2%100pay
Birmingham, AL
$48,380
this area340
Pensacola-Ferry Pass, FL
$48,320
-0.1%210pay
Wichita Falls, TX
$48,310
-0.1%50pay

Questions

How much does it cost to hire a payroll specialist in Birmingham, AL?

About $62,426 a year at the median, or $5,202 a month: $48,380 in pay plus about $14,046 in benefits and payroll taxes. Recruiting, equipment and office space are extra.

What do payroll specialists earn in Birmingham?

Pay here is lower than in three quarters of US areas. The median was $48,380 a year in the May 2025 BLS survey. The 10th percentile was $35,790, the 90th $65,140, and the middle half earned $42,840 to $57,730.

Is Birmingham cheaper than the rest of Alabama for payroll specialists?

No, it costs more: a median of $48,380 against $46,170 statewide. The next area up in Alabama is Huntsville at $52,020, the next down Decatur at $46,810.

How many payroll specialists work in Birmingham?

BLS counts about 340 in the May 2025 survey. That is 25% of the Alabama total of 1,360. No other area in Alabama has as many.

Does a payroll specialist cost more than a bookkeeper in Birmingham?

Yes: $1,050 a year more at the median. The medians are $48,380 and $47,330.

Sources

4 sources, with links
  1. BLS OEWS May 2025, 43-3051: bls.gov
  2. BLS Employer Costs for Employee Compensation, private industry, June 2026: bls.gov
  3. Stafka pricing: stafka.com
  4. Deel pricing, contractor management: deel.com

How these pages are built: methodology and data sources. Last updated 2026-11-12.