FindThatSoftware
HR & Recruiting

Curated shortlist for Indian small businesses and growing teams running payroll

Best Payroll & HR Software for Small Business in India (2026)

The payroll and HR software that fits Indian businesses - automated salary payouts, PF, ESI, TDS and professional-tax compliance, attendance and leave - matched to whether you're a startup, a growing team or an enterprise.

Running payroll in India is really a compliance problem wearing a salary-slip costume. Beyond paying people, you have to deduct and deposit PF, ESI, TDS and professional tax, file returns on time, and - since the four Labour Codes became operational in April 2026 - structure salaries so basic pay is at least half of CTC. Good software does this for you; bad software leaves you exposed to penalties.

The shortlist below is built for Indian statutory reality, not generic global HR. We have matched each tool to the size and stage of business it serves best, from a startup that just wants payroll to run itself to an enterprise managing the full employee lifecycle.

How we chose: Every pick is a source-checked listing in our HR & Recruiting catalog with verified India pricing and built-in statutory (PF/ESI/TDS/PT) handling; we sort by business size and need rather than a single ranking. Last reviewed 24 June 2026. Recommendations are editorial - vendor relationships never set rankings. Always confirm current pricing and features on the vendor's own site before buying.

The shortlist

1Best for automated payroll (startups)Source checked Jun 24, 2026
RP
RazorpayX Payroll

Automated payroll and compliance from Razorpay, handling salary payouts, PF/ESI/TDS, and reimbursements for Indian businesses.

RazorpayX Payroll automates salary payouts and PF/ESI/TDS/professional-tax filings in a few clicks, and is often free for the first six months with a RazorpayX current account. The fastest way for a startup to make payroll run itself without a dedicated HR team.

Starting price
Rs. 2499/user/mo
Free plan
Not listed
Best for
Indian startups wanting automated payroll
Avoid if
Companies needing full HRMS/talent features
2Best all-round HRMS + payrollSource checked Jun 24, 2026
K
Keka

Indian HR and payroll platform (HRMS) covering payroll, attendance, leave, performance, and hiring for growing companies.

Keka pairs payroll with a full HRMS - attendance, leave, performance and hiring - making it the strongest all-rounder for growing teams that want one system. Priced per employee per month, so confirm a quote (and the ~25-employee minimum) for your headcount.

Starting price
Rs. 100/user/mo
Free plan
Not listed
Best for
Indian SMBs and mid-market needing HRMS + payroll
Avoid if
Micro teams needing only basic payroll
3Best for statutory compliance focusSource checked Jun 23, 2026
G
greytHR

Indian HR and payroll software focused on payroll processing, statutory compliance, and core HR for SMBs.

greytHR is an India veteran built around payroll processing and statutory compliance, with strong PF/ESI/PT/TDS handling and employee self-service. Choose it when clean, dependable compliance is the priority over broader HCM features.

Starting price
Rs. 2495/user/mo
Free plan
Not listed
Best for
Indian SMBs needing reliable payroll + compliance
Avoid if
Companies needing deep performance/talent management
4Best value and Zoho ecosystemSource checked Jun 24, 2026
ZP
Zoho People

Cloud HRMS from Zoho for attendance, leave, performance, and employee management, with India payroll via Zoho Payroll.

Zoho People is the value pick - free for up to 5 employees and inexpensive per employee after that - and pairs with Zoho Payroll for statutory filings. Ideal for small teams already using Zoho or watching per-head cost closely.

Starting price
Rs. 50/user/mo
Free plan
Available
Best for
Indian SMBs using the Zoho suite
Avoid if
Teams wanting payroll bundled in one product
5Best mobile-first for mid-marketSource checked Jun 23, 2026
F
factoHR

Indian HR and payroll software with attendance, payroll, performance, and mobile-first employee tools for SMBs and enterprises.

factoHR covers attendance, payroll, performance and compliance with a strong mobile-first experience. A good fit for mid-market and distributed teams where employees self-serve from their phones.

Starting price
Rs. 4999/user/mo
Free plan
Available
Best for
Indian SMBs and enterprises needing HRMS + payroll
Avoid if
Micro teams needing only basic payroll
6Best for enterpriseSource checked Jun 23, 2026
D
Darwinbox

Indian enterprise HCM platform covering the full employee lifecycle - hire to exit - for large organizations.

Darwinbox is an enterprise HCM covering the full employee lifecycle from hire to exit, used by large Indian organisations. The choice when you have hundreds or thousands of employees and need depth across the whole HR stack.

Starting price
Custom
Free plan
Not listed
Best for
Mid-to-large enterprises in India/Asia
Avoid if
Small businesses needing simple payroll

FAQs

Which is the best payroll software for a small business in India?

For most startups, RazorpayX Payroll is the best starting point because it automates salary payouts and PF/ESI/TDS/PT filing with minimal setup. Keka is the strongest all-round HRMS-plus-payroll for growing teams, greytHR is best when statutory compliance is the priority, and Zoho People is the best value for very small teams.

Do these tools handle PF, ESI, TDS and professional tax?

Yes - statutory compliance is the main reason to use India-built payroll software. RazorpayX Payroll, greytHR, Keka, factoHR and Zoho (via Zoho Payroll) all compute and help file PF, ESI, TDS and professional tax. Always confirm the current statutory features and any add-on cost on the vendor's site.

Is there free payroll software in India?

Zoho People is free for up to 5 employees, and RazorpayX Payroll is often free for the first six months with a RazorpayX current account. Beyond those, payroll tools are paid - usually per employee per month - because the statutory compliance engine is the core value.

How do the 2026 Labour Codes affect payroll software?

The four Labour Codes became operational in April 2026, redrawing the wage definition so basic pay (with DA) must be at least 50% of CTC, changing PF/ESI bases, expanding ESI coverage, and replacing Form 16 with Form 130. Up-to-date payroll software handles these changes for you - confirm your tool reflects the new rules before your next pay run.