Blockchain technology has the potential to prevent fraud and increase effectiveness of payroll systems. Payroll management is an essential and critical process for every government, businesses and other organizations as it ensures accurate and timely payment of staff. Payroll systems face challenges in the developing countries such as lack of decentralization, ghost workers, cybercrimes and other manipulations done by people. This paper examines the problems of payroll systems in developing countries and how the capabilities of blockchain can be harnessed to resolve them. The remainder the paper shows how blockchain technologies are a promising approach to mitigating challenges associated with the payroll systems. Through analysis of existing literature we explain the relevance of blockchain technology in general and its usefulness for payroll systems.