Best Payroll Software in India [2026]: Features, Pricing & Compliance Comparison

TL;DR Summary

• Payroll software in India must handle EPF, ESI, TDS, and Professional Tax, compliance is a must.
• For small businesses (under 50 employees), greytHR, Zoho Payroll, and Paybooks are the strongest options.
• Mid-market companies get the best value from Keka or HROne; large enterprises should look at PeopleStrong.
• Pricing ranges from ₹1,999/month for basic tools to custom enterprise pricing, always check what’s actually included in the base plan.
• If your team is spending too much time on payroll or expanding into new states, outsourcing is worth considering over buying software.
• No single platform is best for everyone, your decision should come down to team size, compliance complexity, and internal capacity.

Managing payroll is more complex than most businesses expect. Month on month: calculate salaries, deduct TDS, file EPF returns, and more. That’s where payroll software india comes in. 

The best payroll software helps you with clean compliance and avoiding costly penalties, so choosing the right one is critical 

This guide breaks down the top payroll software options in India, compares features and pricing, and helps you decide what actually fits your business, whether you’re a startup, an SME, or a large enterprise.

What to Look for in Payroll Software for Indian Businesses

Picking payroll software is important to stay compliant with tax and labour laws in India. 

The wrong choice can cost you more than money. You lose time, accuracy, and in some cases, face penalties.

Here’s what actually matters when you’re evaluating options.

Statutory Compliance Coverage

Indian payroll has 5 major deductions: EPF (Employees’ Provident Fund), ESI (Employee State Insurance), TDS (Tax Deducted at Source), Professional Tax (varies by state), and Labour Welfare Fund (in some states). 

Each of these has its own filing deadlines, calculation rules, and state-specific variations. If the software doesn’t update automatically when regulations change, you’ll be stuck doing manual corrections.

Multi-State and Multi-Location Support

Professional Tax is not uniform and varies by state. Good payroll compliance in India features mean the software applies the correct PT based on your employee’s work location.

If you have offices in Mumbai and Bangalore, the software should handle both without you manually adjusting.

Payslip Generation and Employee Self-Service

Employees are increasingly expecting digital payslips, Form 16 downloads, and the ability to declare investments online. 

A self-service portal reduces HR’s workload significantly. If employees can submit their Section 80C declarations or check their salary breakdowns without raising a ticket, that’s time saved on both sides.

Data Security and Access Control

Payroll data is sensitive. Role-based access, audit logs, and encrypted storage are thus non-negotiable. 

Especially if you’re managing payroll for hundreds of employees, you need to control who sees what.

Integration with Attendance and Leave Systems

Payroll needs accurate attendance data. Manual entry of leaves and overtime creates mistakes.

Check whether the software integrates natively with biometric devices, HRMS platforms, or at minimum, supports clean data imports.

Reporting and Audit Readiness

Weak reporting is one of the most underrated pain points in payroll software. You need monthly challans for EPF/ESI, TDS returns (24Q, 26Q), and PT receipts. 

The software must generate these reports ready for submission on the government portals (TRACES, EPFO, ESIC). If you have to reformat data, that’s extra work.

Scalability for Future 

A tool that works for 10 employees might fail at 100. Check pricing per employee and processing speed. 

Some cheap options slow down when you add more people. Test with your expected headcount for the next two years.

Implementation and Support Quality

Features on paper mean little if implementation takes six months and support is unresponsive.

You cannot wait 24 hours for a reply when salary day is tomorrow. Vendor support must be available during Indian business hours, preferably phone or chat, not just email.

Top 10 Payroll Software in India — Feature Comparison

Here are the best payroll software India options. They range from free plans for startups to full-featured suites for enterprises.

Before we get into the details, here’s a quick comparison: 

Software	Best For	Top Features
Zoho Payroll	SMBs in Zoho ecosystem	EPF/ESI/TDS automation, Zoho suite integration, employee self-service
greytHR	SMEs focused on compliance	Statutory filing, PF/ESI challan generation, leave and attendance integration
RazorpayX Payroll	Startups and fast-growing teams	Automated salary disbursement, contractor payroll, fintech-grade payment reliability
Keka	Mid-market HRMS users	Configurable salary structures, performance management, strong UI
HROne	Multi-location businesses	Multi-entity support, shift management, workforce analytics
Saral PayPack	On-premise requirements	Offline payroll, one-time licensing, EPF/ESI/TDS compliance
Zimyo	Affordable SMB all-in-one	Flexible pay structures, expense management, leave and attendance
Pocket HRMS	SMEs wanting self-service	AI chatbot, mobile app, statutory compliance automation
PeopleStrong	Large enterprises	High-volume payroll, multi-country support, API-first architecture
Paybooks	SMBs wanting dedicated payroll	Indian compliance focus, managed payroll option, reimbursement management

1. greytHR 

It is one of the most widely used payroll and HR platforms in India. It has deep compliance coverage and a well-tested feature set. 

Particularly strong for businesses that need reliable statutory filing support alongside core payroll.

Key Features

• Full statutory compliance: EPF, ESI, TDS, PT, LWF
• Automated payslip generation and email delivery
• Leave, attendance, and payroll integration
• PF and ESI challan generation
• Employee self-service and mobile app

Pros	Cons
Deep compliance capabilitiesTrusted by a large user base across industriesStrong documentation and support resourcesAffordable entry-level pricing	UI feels dated compared to newer platformsAdvanced HRMS features are limitedCustomisation can be restrictive on lower plans

Pricing: Starts at ₹3,495/month for up to 50 employees on the essential plan. 

Free Trial: Available for up to 25 employees with limited features.

Best For: SMEs that prioritise compliance accuracy and core HR  over UI or advanced HR features.

2. Keka 

Keka is a modern HRMS platform with a strong payroll module built in. 

It handles payroll alongside performance management, recruitment, and attendance,  all in one platform. 

Key Features

• Configurable salary structures with custom pay components
• Full statutory compliance with auto-updates
• Attendance and leave integration
• Performance and appraisal module
• Employee self-service with mobile access

Pros	Cons
Excellent UI and user experienceStrong all-in-one HRMS capabilityGood onboarding supportFrequent product updates	Higher price point than standalone payroll toolsOverkill for very small teamsSome advanced features locked to higher tiers

Pricing: Starts at ₹9,999/month for up to 100 employees. 

Free Trial: Available.

Best For: Mid-sized companies wanting payroll as part of a complete HRMS.

3. Zoho Payroll 

Zoho Payroll is a cloud-based payroll solution built specifically for Indian compliance requirements. 

The interface is clean, setup is relatively quick, and it handles most statutory requirements out of the box.

Key Features

• Automated EPF, ESI, TDS, and Professional Tax calculations
• Direct salary disbursement via bank integration
• Employee self-service portal with payslip and Form 16 access
• Investment declaration and tax computation
• Integrates with Zoho Books, Zoho People, and third-party tools

Pros	Cons
Easy to set up and navigateStrong integration with Zoho suiteRegular compliance updatesGood customer support	Limited functionality outside Zoho ecosystemAdvanced HR features require separate Zoho productsNot for complex enterprise payroll

Pricing: Starts at ₹100 per month for up to 25 employees. Free for up to 10 employees

Free Trial: 30-day free trial available. 

Best For: Small to mid-sized businesses already using Zoho products.

4. HROne

HROne is a cloud-based HRMS with a solid payroll module. It covers the full employee lifecycle from onboarding to exit and has built its compliance engine specifically for Indian regulations. 

Used by companies across manufacturing, retail, and services sectors.

Key Features

• Automated payroll processing with statutory compliance
• Multi-location and multi-entity support
• Configurable salary structures
• Leave, attendance, and shift management
• Analytics and workforce reports

Pros	Cons
Good multi-location supportCovers a wide range of industriesSolid mobile appReasonable pricing for feature set	Implementation can take time for complex setupsUI has a learning curveSupport quality varies by plan

Pricing: Starts at ₹4950 per month for 50 users

Free Trial: Demo available 

Best For: Mid-market companies with multi-location operations.

5. RazorpayX Payroll

RazorpayX Payroll takes a payments-first approach to payroll. 

It automates salary disbursement, statutory deductions, and compliance filings in a single workflow. 

Key Features

• Automated salary disbursement on scheduled dates
• TDS, EPF, ESI auto-calculation and filing
• Contractor and full-time employee payroll in one platform
• Slack and HRMS integrations
• Direct bank transfers with reconciliation

Pros	Cons
Fast and reliable salary disbursementClean, modern interfaceGood for mixed workforces (employees + contractors)Strong fintech backbone for payment reliability	HRMS features are basicNot suited for complex enterprise payrollCustomer support can be slow during peak periods

Pricing: Starts at ₹2,999/month flat for smaller teams

Free Trial: Trial available on request.

Best For: Startups and growing companies that prioritise payroll automation and fast disbursement.

6. Saral PayPack

Saral PayPack is a desktop-based payroll software that has been in the Indian market for decades. 

It’s one of the few reliable on-premise options still widely used, particularly in industries where data cannot be stored on the cloud due to policy or security constraints.

Key Features

• Complete statutory compliance: EPF, ESI, TDS, PT
• Loan and advance management
• Payslip and Form 16 generation
• Bank transfer file generation
• Works fully offline

Pros	Cons
Strong compliance track recordOne-time licensing optionSuitable for offline/air-gapped environmentsNo dependency on internet connectivity	No cloud access or mobile appUI is outdatedCollaboration across locations is difficultSlower update cycle for compliance changes

Pricing: One-time license depending on employee count and modules. Annual maintenance charges apply.

Free Trial: Trial version available for download from their website.

Best For: Businesses that require on-premise payroll due to data security or connectivity constraints.

7. Zimyo

Zimyo is a cloud HR and payroll platform targeting small and mid-sized businesses in India. 

It covers payroll, performance, recruitment, and engagement in one platform, though its payroll and compliance module is where it’s strongest for day-to-day use.

Key Features

• Automated payroll with statutory deductions
• Flexible pay structure configuration
• Employee self-service portal
• Attendance and leave integration
• Loans, advances, and expense management

Pros	Cons
Affordable pricing for SMBsEasy setup processGood customer onboarding supportRegular feature additions	Not suited for large enterprise requirementsReporting customisation is limitedSome integrations are still maturing

Pricing: Starts at around ₹4,000–₹6,000 per month for up to 50 employees

Free Trial: Available.

Best For: Small and mid-sized businesses looking for an affordable all-in-one HR and payroll platform.

8. Pocket HRMS

Pocket HRMS is an Indian cloud-based HR software with a payroll module that covers most statutory requirements. 

It’s been growing steadily with a focus on SMEs and comes with an AI-assisted chatbot (smHRty) for employee queries, a feature not common in this price range.

Key Features

• Automated payroll with EPF, ESI, TDS, and PT
• AI chatbot for employee self-service queries
• Attendance, leave, and shift management
• Mobile app for employees and HR
• Statutory report generation

Pros	Cons
AI chatbot reduces HR workloadGood mobile experienceAffordable for SMEsActive product development	Enterprise-grade features are limitedIntegration options are narrower than larger platformsPerformance can slow with large datasets

Pricing: Starts at approximately ₹2,995/month. Custom pricing for larger teams. 

Free Trial: Available

Best For: SMEs looking for affordable payroll with a self-service layer.

9. PeopleStrong Payroll

This is an enterprise-grade HR and payroll platform built for large organisations. It handles high-volume payroll with strong compliance, analytics, and workforce management capabilities.

It’s used by some of India’s biggest companies across sectors like BFSI, manufacturing, and IT. 

Key Features

• High-volume payroll processing
• Multi-entity and multi-country payroll support
• Advanced analytics and workforce dashboards
• Full statutory compliance with audit trails
• API-first architecture for enterprise integrations

Pros	Cons
Built for scale and complexityStrong enterprise compliance featuresReliable performance at high employee countsDedicated implementation and account management	Pricing is not SMB-friendlyImplementation timelines can be longRequires IT involvement for setup and integrations

Pricing: Custom enterprise pricing. Typically suited for organisations with 500+ employees.

Free Trial: Demo available 

Best For: Large enterprises with complex payroll requirements and multi-location operations.

10. Paybooks

Paybooks is a cloud-based payroll software that focuses on automating payroll processing and statutory compliance without bundling unnecessary HR features. 

This makes it a clean, no-frills option for businesses that just want payroll done right. 

Key Features

• Automated payroll processing with full statutory compliance
• EPF, ESI, TDS, Professional Tax, and LWF management
• Payslip generation and Form 16 issuance
• Attendance and leave integration
• Employee self-service portal and mobile app
• Reimbursement and expense management

Pros	Cons
Built specifically for Indian payroll with strong compliance focusClean, easy-to-use interfaceResponsive support with dedicated managers on higher plansOption for fully managed payroll services	Limited HRMS features beyond payroll and leaveNot ideal for highly complex enterprise payroll needsFewer third-party integrations than larger platforms

Pricing: Starts at ₹2500/month for up to 30 employees. 

Free Trial: 30-day free trial available.

Best For: Small to mid-sized businesses that want dedicated payroll software with strong Indian compliance support and the option to outsource if needed.

Best for Small Businesses (Under 50 Employees)

If you have fewer than 50 employees, you don’t need an enterprise system with performance reviews, succession planning, or advanced analytics. 

You need: accurate salary calculation, statutory compliance (EPF, ESI, TDS, PT), and bank file generation.

These are the best options: 

GreytHR: Best Overall for Small Teams

GreytHR gives you a genuine free plan for up to 25 employees. No time limit. 

You get payroll processing, PF/ESI/PT compliance, leave management, and employee self-service. 

The free version does not include TDS calculations, but you can upgrade. Many small businesses start here and stay for years. The UI isn’t the most modern, but it’s stable and well-documented.

Zoho Payroll: Best for Businesses Already on Zoho

If you’re using Zoho Books for accounting or Zoho People for HR, Zoho Payroll plugs in cleanly. Zoho Payroll handles everything you need. TDS, PF, ESI, Professional Tax, and Form 16. 

The free plan covers up to 10 employees. For 11 to 50 employees, you pay around ₹50–80 per person per month. The interface is clean. You do not need training. 

The real value is the integration: salary data flows into your books automatically, and employees can access payslips and submit investment declarations without involving HR.

Paybooks: Best for Compliance-First Small Businesses

Paybooks was built in Bangalore with Indian payroll compliance as the core product, not a feature added on top of something else. 

It’s accessible for small teams and offers a managed payroll service if you’d rather hand off the process entirely. For a founder or office manager running payroll alongside ten other responsibilities, that option can make a lot of difference.

Zimyo: Best Budget All-in-One

Zimyo gives you payroll, leave management, attendance tracking, and a basic performance module. 

It won’t match Keka or HROne on depth, but for a small business that wants everything in one place without paying enterprise prices, it works well.

SumoPayroll: Best for Absolute Beginners

SumoPayroll offers a free plan for up to 10 employees. The paid plans start at ₹1,299 for 25 employees and ₹2,499 for 50 employees. 

The software is straightforward. You enter employee details, salary components, and attendance. It calculates deductions, generates payslips, and prepares bank files. Support is responsive. It does not have advanced HR features, but you do not need them.

What to Avoid at This Scale

• PeopleStrong priced and built for enterprises. You’ll pay for features you’ll never use.
• Saral PayPack on-premise software requires local IT support, which most small businesses don’t have.
• RazorpayX Payroll better suited for funded startups with more complex contractor and employee mixes.

For under 50 employees, pick something that handles statutory filings reliably, is easy enough that one person can manage it, and has support you can actually reach when something goes wrong.

Best for Mid-Market & Enterprise Companies

At 100, 500, or 5,000 employees, payroll complexity changes. Multiple departments, different shift timings, branch offices across states, and hundreds of salary structures. 

Small business tools start breaking at this scale, so you need to consider other options. 

Here is the breakdown for payroll management software built for mid-market (50–1000 employees) and enterprise (1000+ employees) companies in India.

Keka:  Best for Mid-Market Companies (100–500 Employees)

Keka started as a payroll-first platform and grew into a full HR suite. You get automated PF, ESI, TDS, and Professional Tax calculations. 

Attendance and leave management integrate directly with payroll. The platform handles overtime, bonuses, gratuity, and full & final settlements. Employee self-service via mobile app works well.

Implementation is smoother than most enterprise platforms, and the support team is responsive during onboarding.

PeopleStrong: Best for Large Enterprises (500+ Employees)

PeopleStrong is built for scale. It processes high-volume payroll reliably, supports multi-entity structures, and has the audit trail and reporting depth that large organisations especially in BFSI, manufacturing, and IT  require. 

The API-first architecture means it can connect with SAP, Oracle, or custom ERP systems without major friction.

However, PeopleStrong requires dedicated IT involvement, a longer onboarding cycle, and custom pricing that reflects the complexity. It’s not a tool you set up in a week. 

But for organisations running payroll for thousands of employees across multiple states, that investment is justified.

HROne: Best for Multi-Location Mid-Market Businesses

HROne is particularly strong for companies operating across multiple cities or states.

Professional Tax rates, Shops and Establishment compliance, and location-specific salary rules are handled at the system level, not through manual overrides. 

HROne built its platform around employee self-service. Your team can mark attendance, apply for leave, view payslips, and submit expense claims entirely from their phones. 

Support is responsive during Indian business hours.

 ADP India: Best for Multinational Compliance

ADP is a global player with deep India presence. Their Vista platform handles India-specific statutory requirements plus global payroll if you have employees overseas. 

Pricing is custom. You get advanced analytics, audit trails, and role-based access controls. Support includes dedicated onboarding teams. T

he trade-off is higher cost and less flexibility compared to homegrown alternatives.

RazorpayX Payroll: Best for High-Growth Startups

If your company has grown from 30 to 300 employees in two years and has a mix of full-time employees, contractors, and consultants, RazorpayX handles that complexity better than most. 

The fintech backbone means salary disbursements are fast and reliable. 

It’s not a full HRMS, but for companies where payroll and payments are the primary concern, it covers the ground well.

What you actually need at this scale

Do not buy software without these four features:

• Bulk processing:Upload salary changes for 500 employees at once.
• Role-based access: Department managers see only their team’s data.
• Audit logs: Every change tracked for statutory inspection.
• API integration: Connect with your existing ERP or accounting system.

Compliance Features — EPF, ESI, TDS, Professional Tax

Payroll compliance is an ongoing process with monthly deadlines, quarterly filings, annual returns, and state-specific rules that are ever changing. 

Here’s what each statutory requirement involves and what your payroll software must handle.

EPF: Employee Provident Fund

EPF applies to establishments with 20 or more employees. Both employer and employee contribute 12% of the employee’s basic salary. 

The employer’s 12% is split: 3.67%  to EPF account and 8.33% to EPS (Employee Pension Scheme).

Software should:

• Calculate contributions automatically based on basic pay
• Generate the ECR (Electronic Challan cum Return) file for EPFO portal upload
• Handle employees who opt out where eligible
• Track PF account numbers and UAN (Universal Account Number) for each employee
• Flag when new employees cross the threshold requiring registration

Filing deadline: ECR must be filed and payment made by the 15th of every month.

ESI: Employee State Insurance

ESI applies to employees earning up to ₹21,000 per month (₹25,000 for persons with disabilities) in establishments with 10 or more employees. 

The employer contributes 3.25% and employee 0.75% of gross wages.

Software should:

• Automatically include or exclude employees based on salary threshold
• Generate the monthly ESI contribution file for the ESIC portal
• Update coverage status when an employee’s salary crosses the threshold mid-year
• Maintain IP (Insured Person) numbers for each covered employee

Filing deadline: Contributions must be deposited by the 15th of the following month.

TDS: Tax Deducted at Source

The employer is responsible for estimating each employee’s annual tax liability and deducting it proportionally across the financial year.

 This is one of the more complex parts of payroll because it involves investment declarations, actual proof submissions, and reconciliation at year-end.

Software should:

• Collect and factor in Section 80C, 80D, HRA, and other exemption declarations
• Recalculate TDS when declarations change during the year
• Generate Form 24Q for quarterly TDS returns
• Issue Form 16 to all employees by June 15 after the financial year ends
• Handle both old and new tax regimes — employees can choose annually

Filing deadlines: Form 24Q is filed quarterly — Q1 by July 31, Q2 by October 31, Q3 by January 31, Q4 by May 31.

Professional Tax

Professional Tax is a state-level tax, with varying slabs, and filing frequencies. 

Maharashtra, Karnataka, West Bengal, Andhra Pradesh, Telangana, and Tamil Nadu all have different structures. 

Some states charge a fixed monthly amount; others use income slabs. The maximum is capped at ₹2,500 per year under the Constitution.

Software should:

• Apply the correct PT slab based on the employee’s work location, not the company’s headquarters
• Handle states with different filing frequencies (monthly vs. half-yearly)
• Generate state-specific challan files
• Automatically update when state governments revise slabs

Labour Welfare Fund (LWF)

LWF is often overlooked but applies in several states including Maharashtra, Karnataka, Andhra Pradesh, and Gujarat. 

Contribution amounts are small but filing is mandatory. The frequency varies. Some states require it monthly, others half-yearly or annually.

Cloud vs On-Premise Payroll Software

You have a choice when buying payroll software India: cloud-based or on-premise. 

Most businesses today pick cloud, but in some situations on-premise makes more sense.

Let’s find out:

Cloud Payroll Software

Your data lives on the vendor’s servers. You access it through a web browser or mobile app. You pay monthly or yearly per employee. No servers to buy. No IT team needed.

Advantages:

• Automatic updates: TDS slabs, PF rates, and compliance changes are updated by the vendor automatically.
• Ensures compliance: Reduces risk of penalties due to missed regulatory changes.
• Remote access: Run payroll from anywhere. From your home, office, or while traveling.
• Employee self-service: Staff can access payslips and Form 16 anytime, anywhere.
• No maintenance burden: Vendor manages backups, security, and server upkeep.
• Data safety: No risk of data loss if your device fails, just log in from another device. 

Disadvantages:

• Recurring cost: Monthly payments can exceed one-time on-premise costs over time.
• Data security concerns: Payroll data is stored off-site; some businesses may be uncomfortable with this.
• Internet dependency: Requires a stable connection; poor connectivity can disrupt operations.

On-Premise Payroll Software

You buy a license. You install the software on your own computer or server. You manage everything.

Advantages:

• One-time cost: Pay once (e.g., around ₹53,700 for a standard plan) and use for years, often cheaper long-term than subscriptions.
• Data control: All payroll data stays on your local system with no third-party access.
• Offline capability: Works without interne, ideal for factories or remote locations with poor connectivity.

Disadvantages: 

• Manual updates: You must download and install tax and compliance updates yourself; missing them can lead to errors.
• IT dependency: You’re responsible for backups, security, and handling hardware issues.
• Limited access: Typically supports only one user at a time unless you set up remote access.
• No mobile/self-service: Employees can’t easily access payslips or information from their phones.

Which One’s for Your Businesses?

Choose cloud if: You have reliable internet, fewer than 500 employees, and want automatic compliance updates. This covers most Indian businesses. Zoho Payroll, Keka, RazorpayX, and greytHR are cloud-based.

Choose on-premise if: You run a manufacturing unit or office with poor internet, or if your management refuses to put employee salary data on external servers. Saral PayPack and some legacy versions of greytHR offer on-premise options.

Hybrid approach: 

Some vendors offer both. You store data on your server but access it through a cloud interface. Best of both worlds, but more expensive. Ask specifically if you need this.

Do not buy on-premise just to save monthly fees. Calculate total cost over three years, license plus your IT person’s time for updates and backups. Most small businesses find cloud cheaper when you factor in your own hours.

Pricing Comparison — Per Employee Costs

Many vendors charge per employee per month for payroll software.  

If you are thinking of buying a software, make sure to compare  these as well to avoid any unpleasant surprises in the billing. 

Payroll Software India Pricing

The three common structures are:

• Per employee per month (PEPM): scales with your headcount. Better for growing companies but can get expensive at scale.
• Flat monthly fee: fixed cost up to a certain employee count. Predictable but may include a jump in pricing once you cross a threshold.
• One-time license: typically for on-premise software. Lower long-term cost but requires maintenance fees and IT resources.

Pricing Breakdown by Platform

Software	Pricing Model	Approx. Cost
greytHR	Flat monthly (tiered)	~₹3,495/month for up to 50 employees
Keka	Flat monthly (tiered)	~₹9,999/month for up to 100 employees
Zoho Payroll	Per employee/month	~₹40–₹85 per employee (Standard to Pro plans)
HROne	Per employee/month	~₹85–₹130 per employee (base plan + add‑ons)
RazorpayX Payroll	Flat monthly + PEPM	~₹2,999–₹5,499/month for small teams
Saral PayPack	One-time license	~₹10,000–₹25,000 (one‑time, before AMC)
Zimyo	Per employee/month	~₹80–₹160 per employee (Basic→Enterprise tiers)
Pocket HRMS	Flat monthly	~₹2,995/month for up to 50 employees
PeopleStrong	Custom enterprise	On request
Paybooks	Flat monthly	~₹2,499/month for up to 30 employees

Hidden Costs to Watch For

The base price rarely tells the full story. Watch for these:

• Implementation fees: Keka, HROne, and PeopleStrong often charge separately for onboarding and data migration.
• Add-on modules: some platforms charge extra for Form 16 generation, advanced reporting, or API access.
• Support tiers: priority support or dedicated account managers usually sit behind a higher plan.
• Annual vs monthly billing: most vendors offer 10–20% discounts for annual commitments. If you’re confident in the platform, that’s real savings.

The cheapest option is not necessarily the right one. A platform at ₹1,500/month that generates incorrect TDS calculations will cost far more in penalties than a ₹5,000/month platform that gets it right every time. 

Price matters but accuracy, compliance coverage, and support quality matter more.

When to Outsource Payroll Instead of Buying Software

For some businesses, outsourcing payroll is a much better option. You hand over employee data to a third-party firm. 

They calculate salaries, deduct TDS, file EPF returns, and deposit challans. You get a ready report. No software to learn. No updates to install.

Here is when you outsource instead of buying: 

1. You have fewer than 10 employees

For 5 or 6 employees, software is overkill. You will spend more time setting up the tool than running payroll. 

A good outsourced provider charges ₹500–₹1,500 per month for this size. They handle everything. Your only job is to confirm attendance and approve the final salary sheet.

2. You run payroll once every two months or irregularly

Some small businesses pay staff quarterly. Others run payroll only when projects complete. Payroll management software works on monthly cycles. 

If you do not run payroll every month, the software becomes wasted subscription fees. Outsourcing lets you pay only when you process.

3. You have zero in-house accounting or HR knowledge

Software automates calculations, but you still need to know what to check. For example, software will calculate TDS, but you must verify that employees submitted correct investment proofs. 

If no one on your team understands Form 16 or PF returns, outsource to experts. They take full responsibility for compliance.

4. Penalties cost you more than outsourcing fees

You have received notices from EPFO or Income Tax before. Late filing of TDS returns costs ₹200 per day. 

Missed PF challans add up to ₹10,000 per month. If you cannot guarantee timely filing, outsource. Reputable firms guarantee on-time filing and cover any penalty caused by their error.

5. You are a foreign company with a small India subsidiary

You have 20 employees in India but headquarters abroad. Your finance team does not understand Indian tax laws. Outsourcing is safer. 

The provider handles Professional Tax for each state, Labour Welfare Fund where applicable, and year-end Form 16 generation. You receive one consolidated invoice.

What Outsourcing Does Not Solve

Outsourcing doesn’t fix messy attendance tracking. If you cannot tell the provider how many days each employee worked, they cannot calculate salary. You still need a system.  Even a simple Excel sheet to record leaves and overtime.

Outsourcing also takes control away. You cannot run an on-demand payroll for a bonus or advance. You wait for the provider’s processing schedule.

FAQs