Best HR Software for Small Business India — 7 Options Compared (2026)

🏆 Quick Answer – Best Hr Software For Small Business

Best Overall: Keka HR – Best all-round HRMS for Indian SMEs – payroll, performance, recruitment in one platform

Best Premium: greytHR – India’s payroll compliance champion – rock-solid PF, ESI, PT, TDS automation

Best Free: Kredily – genuinely free HR + payroll

🇮🇳 The India Context

India’s small businesses (10-200 employees) face a paradox: they’re too big for manual HR but feel too small for ‘enterprise’ HRMS. The result – a patchwork of Excel attendance registers, manual salary calculations, and a CA or payroll outsourcer handling PF/ESI filing with a 1-month lag.

The compliance landscape for small businesses is increasingly demanding. The Code on Social Security (2020) expanded PF coverage. ESI threshold increased to ₹21,000/month. Professional Tax rates vary by state (Maharashtra: ₹2,500/year; Karnataka: ₹2,400/year; no PT in Delhi). Getting compliance wrong costs real money – PF late filing charges are ₹5,000 for first default and ₹25,000 for subsequent ones, plus 12% annual interest on delayed contributions.

The good news: Indian HR software has matured dramatically. Keka starts at ₹6,999/mo for 100 employees (₹70/employee). GreytHR has a free Starter plan for 25 employees. Zoho People starts at ₹48/user/month. SumHR is just ₹49/employee/month. For a 50-employee company, you’re looking at ₹2,450-₹6,999/month for proper HRMS – less than one employee’s salary.

Keka HR by Keka Technologies, Hyderabad. Type: Cloud. Price: Foundation ₹6,999/mo (100 employees); +₹60/employee/mo above 100. Free: Free trial (no free tier).

How It Works for Small Business

Your small business-focused team adopts Keka HR (Cloud). Sign up takes under 5 minutes – cloud access from any browser or phone. You add employees, configure salary structures (basic + HRA + special allowance), set up PF and ESI parameters, and define leave policies. First payroll runs in under 30 minutes: salary calculated, PF/ESI deducted, TDS computed based on each employee’s IT regime and declarations, payslips generated and emailed to everyone. Your employees punch in via the mobile app – GPS and selfie verification confirm they are where they should be. Month-end: PF ECR file generated in one click, ESI challan prepared, Professional Tax calculated per state. Your CA downloads the reports and files with zero back-and-forth.

What Works

✅ Made in India – native PF, ESI, PT, TDS, gratuity compliance for Indian salary structures and state-specific rules

✅ Genuinely free tier available – Free trial (no free tier) – real features, not a 7-day trial disguised as free

✅ Modules: Payroll, Attendance (GPS/biometric), Leave, Performance, Recruitment, Onboarding, Timesheets, Employee Self-Service, Expense Management – handles the full employee lifecycle from hire to exit

✅ Pricing: Foundation ₹6,999/mo (100 employees); +₹60/employee/mo above 100 – evaluate per-employee cost at your team size

✅ Trusted by 16,500+ companies, 2.5M+ employees – proven at scale with real Indian companies

✅ Best all-round HRMS for Indian SMEs – payroll, performance, recruitment in one platform

✅ Employee self-service portal – your team handles payslips, leave applications, and tax declarations without coming to HR

What Doesn't

❌ Cloud-only – needs internet for all operations including attendance punching, which fails during network outages in industrial or rural areas

❌ English-only interface – may create adoption friction for blue-collar workforce in Hindi-speaking regions

❌ Payroll via Cloud means your salary data is stored on third-party servers – evaluate data security policies carefully

❌ Price: Foundation ₹6,999/mo (100 employees); +₹60/employee/mo above 100 – compare per-employee cost against alternatives at your specific team size (costs vary significantly at 25 vs 50 vs 100 employees)

❌ Implementation requires one-time effort to configure salary structures, PF/ESI settings, and leave policies correctly – budget 3-5 days for initial setup

❌ Statutory compliance rules change frequently – verify that the software’s update cycle keeps pace with PF/ESI/PT rate changes

Skip This If..

⚠️ You have under 5 employees – a simple payroll Excel and a CA might still work better for your scale

⚠️ Your workforce is 100% blue-collar with no smartphone access – you need biometric hardware, not an app-based solution

⚠️ You need offline attendance tracking for areas with zero internet – this tool requires connectivity

greytHR by Greytip Software, Bengaluru. Type: Cloud. Price: Essential ₹3,495/mo (up to 50); Growth ₹5,495/mo (up to 50); +₹30-80/employee above. Free: Free trial; Free Starter plan (25 employees, basic features).

How It Works for Small Business

Your small business-focused team adopts greytHR (Cloud). Sign up takes under 5 minutes – cloud access from any browser or phone. You add employees, configure salary structures (basic + HRA + special allowance), set up PF and ESI parameters, and define leave policies. First payroll runs in under 30 minutes: salary calculated, PF/ESI deducted, TDS computed based on each employee’s IT regime and declarations, payslips generated and emailed to everyone. Your employees punch in via the mobile app – GPS and selfie verification confirm they are where they should be. Month-end: PF ECR file generated in one click, ESI challan prepared, Professional Tax calculated per state. Your CA downloads the reports and files with zero back-and-forth.

What Works

✅ Made in India – native PF, ESI, PT, TDS, gratuity compliance for Indian salary structures and state-specific rules

✅ Genuinely free tier available – Free trial; Free Starter plan (25 employees, basic features) – real features, not a 7-day trial disguised as free

✅ Modules: Payroll, Statutory Compliance (PF/ESI/PT/TDS), Attendance, Leave, Employee Self-Service, Helpdesk, Workflows, Reports & Analytics – handles the full employee lifecycle from hire to exit

✅ Pricing: Essential ₹3,495/mo (up to 50); Growth ₹5,495/mo (up to 50); +₹30-80/employee above – evaluate per-employee cost at your team size

✅ Trusted by 30,000+ clients, 3M+ employees across 25 countries – proven at scale with real Indian companies

✅ India’s payroll compliance champion – rock-solid PF, ESI, PT, TDS automation

✅ Employee self-service portal – your team handles payslips, leave applications, and tax declarations without coming to HR

What Doesn't

❌ Cloud-only – needs internet for all operations including attendance punching, which fails during network outages in industrial or rural areas

❌ English-only interface – may create adoption friction for blue-collar workforce in Hindi-speaking regions

❌ Payroll via Cloud means your salary data is stored on third-party servers – evaluate data security policies carefully

❌ Price: Essential ₹3,495/mo (up to 50); Growth ₹5,495/mo (up to 50); +₹30-80/employee above – compare per-employee cost against alternatives at your specific team size (costs vary significantly at 25 vs 50 vs 100 employees)

❌ Implementation requires one-time effort to configure salary structures, PF/ESI settings, and leave policies correctly – budget 3-5 days for initial setup

❌ Statutory compliance rules change frequently – verify that the software’s update cycle keeps pace with PF/ESI/PT rate changes

Skip This If..

⚠️ You have under 5 employees – a simple payroll Excel and a CA might still work better for your scale

⚠️ Your workforce is 100% blue-collar with no smartphone access – you need biometric hardware, not an app-based solution

⚠️ You need offline attendance tracking for areas with zero internet – this tool requires connectivity

Zoho People by Zoho Corporation, Chennai. Type: Cloud. Price: Essential HR ₹48/user/mo; Professional ₹96/user/mo; Premium ₹144/user/mo (billed annually). Free: Free for up to 5 users (basic HR).

How It Works for Small Business

Your small business-focused team adopts Zoho People (Cloud). Sign up takes under 5 minutes – cloud access from any browser or phone. You add employees, configure salary structures (basic + HRA + special allowance), set up PF and ESI parameters, and define leave policies. First payroll runs in under 30 minutes: salary calculated, PF/ESI deducted, TDS computed based on each employee’s IT regime and declarations, payslips generated and emailed to everyone. Your employees punch in via the mobile app – GPS and selfie verification confirm they are where they should be. Month-end: PF ECR file generated in one click, ESI challan prepared, Professional Tax calculated per state. Your CA downloads the reports and files with zero back-and-forth.

What Works

✅ Made in India – native PF, ESI, PT, TDS, gratuity compliance for Indian salary structures and state-specific rules

✅ Genuinely free tier available – Free for up to 5 users (basic HR) – real features, not a 7-day trial disguised as free

✅ Modules: Core HR, Attendance, Leave, Timesheets, Performance, Recruitment (via Zoho Recruit), Files, Analytics. Payroll via separate Zoho Payroll app – handles the full employee lifecycle from hire to exit

✅ Pricing: Essential HR ₹48/user/mo; Professional ₹96/user/mo; Premium ₹144/user/mo (billed annually) – evaluate per-employee cost at your team size

✅ Trusted by 120M+ Zoho users globally – proven at scale with real Indian companies

✅ Best value HRMS for small teams already using Zoho ecosystem

✅ Employee self-service portal – your team handles payslips, leave applications, and tax declarations without coming to HR

What Doesn't

❌ Cloud-only – needs internet for all operations including attendance punching, which fails during network outages in industrial or rural areas

❌ English-only interface – may create adoption friction for blue-collar workforce in Hindi-speaking regions

❌ Payroll via Cloud means your salary data is stored on third-party servers – evaluate data security policies carefully

❌ Price: Essential HR ₹48/user/mo; Professional ₹96/user/mo; Premium ₹144/user/mo (billed annually) – compare per-employee cost against alternatives at your specific team size (costs vary significantly at 25 vs 50 vs 100 employees)

❌ Implementation requires one-time effort to configure salary structures, PF/ESI settings, and leave policies correctly – budget 3-5 days for initial setup

❌ Statutory compliance rules change frequently – verify that the software’s update cycle keeps pace with PF/ESI/PT rate changes

Skip This If..

⚠️ You have under 5 employees – a simple payroll Excel and a CA might still work better for your scale

⚠️ Your workforce is 100% blue-collar with no smartphone access – you need biometric hardware, not an app-based solution

⚠️ You need offline attendance tracking for areas with zero internet – this tool requires connectivity

Kredily by Kredily, Bengaluru. Type: Cloud. Price: Free for core HR & payroll (basic); Premium plans from ₹1,499/mo. Free: Free plan with payroll, attendance, leave for unlimited employees.

How It Works for Small Business

Your small business-focused team adopts Kredily (Cloud). Sign up takes under 5 minutes – cloud access from any browser or phone. You add employees, configure salary structures (basic + HRA + special allowance), set up PF and ESI parameters, and define leave policies. First payroll runs in under 30 minutes: salary calculated, PF/ESI deducted, TDS computed based on each employee’s IT regime and declarations, payslips generated and emailed to everyone. Your employees punch in via the mobile app – GPS and selfie verification confirm they are where they should be. Month-end: PF ECR file generated in one click, ESI challan prepared, Professional Tax calculated per state. Your CA downloads the reports and files with zero back-and-forth.

What Works

✅ Made in India – native PF, ESI, PT, TDS, gratuity compliance for Indian salary structures and state-specific rules

✅ Genuinely free tier available – Free plan with payroll, attendance, leave for unlimited employees – real features, not a 7-day trial disguised as free

✅ Modules: Payroll, Attendance, Leave, Employee Database, Payslips, Tax Declarations, HR Helpdesk – handles the full employee lifecycle from hire to exit

✅ Pricing: Free for core HR & payroll (basic); Premium plans from ₹1,499/mo – evaluate per-employee cost at your team size

✅ Trusted by Growing startup base – proven at scale with real Indian companies

✅ Genuinely free HR + payroll for startups – rare in the Indian market

✅ Employee self-service portal – your team handles payslips, leave applications, and tax declarations without coming to HR

What Doesn't

❌ Cloud-only – needs internet for all operations including attendance punching, which fails during network outages in industrial or rural areas

❌ English-only interface – may create adoption friction for blue-collar workforce in Hindi-speaking regions

❌ Payroll via Cloud means your salary data is stored on third-party servers – evaluate data security policies carefully

❌ Price: Free for core HR & payroll (basic); Premium plans from ₹1,499/mo – compare per-employee cost against alternatives at your specific team size (costs vary significantly at 25 vs 50 vs 100 employees)

❌ Implementation requires one-time effort to configure salary structures, PF/ESI settings, and leave policies correctly – budget 3-5 days for initial setup

❌ Statutory compliance rules change frequently – verify that the software’s update cycle keeps pace with PF/ESI/PT rate changes

Skip This If..

⚠️ You have under 5 employees – a simple payroll Excel and a CA might still work better for your scale

⚠️ Your workforce is 100% blue-collar with no smartphone access – you need biometric hardware, not an app-based solution

⚠️ You need offline attendance tracking for areas with zero internet – this tool requires connectivity

Zimyo by Zimyo, Gurugram. Type: Cloud. Price: From ₹60/employee/mo; custom plans for larger teams. Free: Free demo.

How It Works for Small Business

Your small business-focused team adopts Zimyo (Cloud). Sign up takes under 5 minutes – cloud access from any browser or phone. You add employees, configure salary structures (basic + HRA + special allowance), set up PF and ESI parameters, and define leave policies. First payroll runs in under 30 minutes: salary calculated, PF/ESI deducted, TDS computed based on each employee’s IT regime and declarations, payslips generated and emailed to everyone. Your employees punch in via the mobile app – GPS and selfie verification confirm they are where they should be. Month-end: PF ECR file generated in one click, ESI challan prepared, Professional Tax calculated per state. Your CA downloads the reports and files with zero back-and-forth.

What Works

✅ Made in India – native PF, ESI, PT, TDS, gratuity compliance for Indian salary structures and state-specific rules

✅ Modules: Payroll, Attendance, Leave, Performance (OKRs/KPIs), Recruitment, Onboarding, Engagement, Surveys, Timesheets, Expenses, Helpdesk – handles the full employee lifecycle from hire to exit

✅ Pricing: From ₹60/employee/mo; custom plans for larger teams – evaluate per-employee cost at your team size

✅ Trusted by 2,500+ organizations, 750K+ employees – proven at scale with real Indian companies

✅ Modern HRMS with 50+ modules – strong for growing companies wanting everything in one platform

✅ Employee self-service portal – your team handles payslips, leave applications, and tax declarations without coming to HR

What Doesn't

❌ Cloud-only – needs internet for all operations including attendance punching, which fails during network outages in industrial or rural areas

❌ English-only interface – may create adoption friction for blue-collar workforce in Hindi-speaking regions

❌ Payroll via Cloud means your salary data is stored on third-party servers – evaluate data security policies carefully

❌ Price: From ₹60/employee/mo; custom plans for larger teams – compare per-employee cost against alternatives at your specific team size (costs vary significantly at 25 vs 50 vs 100 employees)

❌ Implementation requires one-time effort to configure salary structures, PF/ESI settings, and leave policies correctly – budget 3-5 days for initial setup

❌ Statutory compliance rules change frequently – verify that the software’s update cycle keeps pace with PF/ESI/PT rate changes

Skip This If..

⚠️ You have under 5 employees – a simple payroll Excel and a CA might still work better for your scale

⚠️ Your workforce is 100% blue-collar with no smartphone access – you need biometric hardware, not an app-based solution

⚠️ You need offline attendance tracking for areas with zero internet – this tool requires connectivity

sumHR by sumHR (Startup), Mumbai. Type: Cloud. Price: From ₹49/employee/mo – one of the cheapest in India. Free: Free trial.

How It Works for Small Business

Your small business-focused team adopts sumHR (Cloud). Sign up takes under 5 minutes – cloud access from any browser or phone. You add employees, configure salary structures (basic + HRA + special allowance), set up PF and ESI parameters, and define leave policies. First payroll runs in under 30 minutes: salary calculated, PF/ESI deducted, TDS computed based on each employee’s IT regime and declarations, payslips generated and emailed to everyone. Your employees punch in via the mobile app – GPS and selfie verification confirm they are where they should be. Month-end: PF ECR file generated in one click, ESI challan prepared, Professional Tax calculated per state. Your CA downloads the reports and files with zero back-and-forth.

What Works

✅ Made in India – native PF, ESI, PT, TDS, gratuity compliance for Indian salary structures and state-specific rules

✅ Genuinely free tier available – Free trial – real features, not a 7-day trial disguised as free

✅ Modules: Core HR, Payroll, Attendance, Leave, Expense, Performance, Onboarding – handles the full employee lifecycle from hire to exit

✅ Pricing: From ₹49/employee/mo – one of the cheapest in India – evaluate per-employee cost at your team size

✅ Trusted by Growing Indian SME base – proven at scale with real Indian companies

✅ Most affordable paid HRMS in India – ₹49/employee/month for core features

✅ Employee self-service portal – your team handles payslips, leave applications, and tax declarations without coming to HR

What Doesn't

❌ Cloud-only – needs internet for all operations including attendance punching, which fails during network outages in industrial or rural areas

❌ English-only interface – may create adoption friction for blue-collar workforce in Hindi-speaking regions

❌ Payroll via Cloud means your salary data is stored on third-party servers – evaluate data security policies carefully

❌ Price: From ₹49/employee/mo – one of the cheapest in India – compare per-employee cost against alternatives at your specific team size (costs vary significantly at 25 vs 50 vs 100 employees)

❌ Implementation requires one-time effort to configure salary structures, PF/ESI settings, and leave policies correctly – budget 3-5 days for initial setup

❌ Statutory compliance rules change frequently – verify that the software’s update cycle keeps pace with PF/ESI/PT rate changes

Skip This If..

⚠️ You have under 5 employees – a simple payroll Excel and a CA might still work better for your scale

⚠️ Your workforce is 100% blue-collar with no smartphone access – you need biometric hardware, not an app-based solution

⚠️ You need offline attendance tracking for areas with zero internet – this tool requires connectivity

factoHR by factoHR (India). Type: Cloud. Price: Custom pricing – typically ₹40-100/employee/mo. Free: Free demo.

How It Works for Small Business

Your small business-focused team adopts factoHR (Cloud). Sign up takes under 5 minutes – cloud access from any browser or phone. You add employees, configure salary structures (basic + HRA + special allowance), set up PF and ESI parameters, and define leave policies. First payroll runs in under 30 minutes: salary calculated, PF/ESI deducted, TDS computed based on each employee’s IT regime and declarations, payslips generated and emailed to everyone. Your employees punch in via the mobile app – GPS and selfie verification confirm they are where they should be. Month-end: PF ECR file generated in one click, ESI challan prepared, Professional Tax calculated per state. Your CA downloads the reports and files with zero back-and-forth.

What Works

✅ Made in India – native PF, ESI, PT, TDS, gratuity compliance for Indian salary structures and state-specific rules

✅ Modules: Payroll, Attendance (biometric/GPS/selfie), Leave, Recruitment, Onboarding, Performance, Exit, Travel & Expense – handles the full employee lifecycle from hire to exit

✅ Pricing: Custom pricing – typically ₹40-100/employee/mo – evaluate per-employee cost at your team size

✅ Trusted by 3,500+ companies, 2.6M+ employees – proven at scale with real Indian companies

✅ Comprehensive HRMS with strong mobile and biometric attendance capabilities

✅ Employee self-service portal – your team handles payslips, leave applications, and tax declarations without coming to HR

What Doesn't

❌ Cloud-only – needs internet for all operations including attendance punching, which fails during network outages in industrial or rural areas

❌ English-only interface – may create adoption friction for blue-collar workforce in Hindi-speaking regions

❌ Payroll via Cloud means your salary data is stored on third-party servers – evaluate data security policies carefully

❌ Price: Custom pricing – typically ₹40-100/employee/mo – compare per-employee cost against alternatives at your specific team size (costs vary significantly at 25 vs 50 vs 100 employees)

❌ Implementation requires one-time effort to configure salary structures, PF/ESI settings, and leave policies correctly – budget 3-5 days for initial setup

❌ Statutory compliance rules change frequently – verify that the software’s update cycle keeps pace with PF/ESI/PT rate changes

Skip This If..

⚠️ You have under 5 employees – a simple payroll Excel and a CA might still work better for your scale

⚠️ Your workforce is 100% blue-collar with no smartphone access – you need biometric hardware, not an app-based solution

⚠️ You need offline attendance tracking for areas with zero internet – this tool requires connectivity

Step 1: Day 1: Sign Up & Configure

Create your account on Keka HR. Enter company details: name, registered address, PAN, TAN, PF establishment code, ESI code, Professional Tax registration number. Set financial year (April-March). Configure salary components: basic, HRA, special allowance, conveyance, medical – based on your company’s structure.

Step 2: Day 2: Add Employees

Import employee data from Excel (name, PAN, Aadhaar, bank account, UAN, ESI IP number, date of joining, salary details). Keka HR validates PAN format and bank IFSC codes automatically. For each employee, configure: salary structure, PF applicability, ESI eligibility, IT regime (old vs new), and leave policy.

Step 3: Day 3-4: Configure Attendance & Leave

Set up attendance rules: office hours, grace period for late arrivals, overtime rules, weekly off policy. Configure leave types: earned leave, casual leave, sick leave, maternity/paternity leave – with accrual rules and carry-forward policies. Enable GPS/selfie attendance for mobile punch-in.

Step 4: Day 5: Dry Run Payroll

Run a test payroll for the current month. Verify: gross salary calculation, PF deduction (12% of basic+DA), ESI deduction (if applicable), Professional Tax, TDS based on declarations, net salary. Compare against your last manual payroll. Fix any discrepancies in salary structure configuration.

Step 5: Day 6-7: Go Live

Run actual payroll. Generate payslips and distribute to employees via the self-service portal. Generate PF ECR file and ESI challan. Your accountant/CA reviews and files. Employees receive their first digital payslips – and you’ve just saved 2-3 days this month.

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