This 2026 guide compares the 10 best payroll software platforms in India across statutory compliance (PF, ESI, TDS, Professional Tax, LWF), pricing, ease of use, and best-fit company size. The shortlist covers factoHR, PeopleStrong, Keka HR, Zoho People, Oracle, RazorpayX, GreytHR, ADP, HROne, and Darwinbox.
You will find a comparison table, detailed per-tool reviews with pros and cons, Indian compliance checklists, a Telangana Professional Tax callout, and a stage-by-stage decision framework for startups, SMBs, mid-market firms, and enterprises. Each tool review covers payroll capabilities only, not general HR features.
- factoHR is the best payroll software in India for 2026 across SMBs, mid-market, and manufacturing. It scores highest on multi-state compliance, attendance-driven payroll, and India-native depth.
- GreytHR is the only free option for teams under 25 employees, with full PF, ESI, PT, and TDS handling.
- RazorpayX Payroll and Zoho People are the cheapest serious tools at Rs. 33 to Rs. 100 per employee per month for startups.
- Keka HR ranks highest on UX among Indian-built mid-market platforms.
- PeopleStrong, Darwinbox, Oracle, and ADP serve enterprises above 1,000 employees with multi-entity and multi-country payroll needs.
- Average setup time: 1 week for startups, 3 to 6 weeks for mid-market, 6 to 12 weeks for enterprise rollouts.
What Is Payroll Software and What Does It Do?
Payroll software calculates salaries, deducts statutory dues, generates payslips, and files compliance returns automatically. In India, it must handle PF, ESI, TDS, Professional Tax, and Labour Welfare Fund every month, across every state your team works in.
You feed the software two things: employee master data (CTC structure, bank account, joining date) and monthly inputs (attendance, leave, one-time payouts). It returns four outputs: net pay per employee, statutory challans, signed payslips, and audit reports for finance.
Good payroll software replaces three painful workflows. It removes Excel macros that break every quarter. It removes the back-and-forth between attendance and payroll teams. And it removes the late-night scramble before TDS or PF filing dates.
Why Choosing the Right Payroll Software in India Is Difficult
Indian payroll changes faster than most teams track. PF rates, ESI ceilings, TDS slabs, and 17 different state Professional Tax rules update on separate calendars. One missed update equals one wrong filing, one penalty, and one angry employee.
Most teams also run attendance in one tool and payroll in another. Every cycle, someone exports data, cleans it, and re-uploads it. That gap is where salary errors creep in and late filings happen.
The right payroll software closes that gap. It pulls attendance directly, applies the current rules, and keeps your filings on time without you chasing every state circular.
Indian Payroll Compliance Rules Every Software Must Handle
Strong payroll software handles 7 statutory rules every month: PF, ESI, TDS, Professional Tax, LWF, Gratuity, and Bonus. The hardest part is applying the right PT slab by employee work location and pushing updates the moment a state revises rates.
- Provident Fund (PF / EPF): Employer and employee contributions, ECR generation, and EPFO filings.
- Employee State Insurance (ESI): Contribution rates and monthly challans, applied within the current wage ceiling.
- TDS on salary: Monthly tax deduction under Section 192, Form 24Q filings, and annual Form 16.
- Professional Tax (PT): A state-level tax with different slabs in Maharashtra, Karnataka, West Bengal, Telangana, and others. Some states, like Delhi and Haryana, do not levy it at all.
- Labour Welfare Fund (LWF): State-specific, usually deducted in fixed cycles, with amounts that differ by state.
- Gratuity: Payable after 5 continuous years of service, using the standard (last drawn salary x 15 x years) / 26 formula.
- Bonus: Governed by the Payment of Bonus Act, with statutory minimum and maximum limits.
- Code on Wages readiness: The new labour codes change how “wages” are defined, which affects PF and gratuity. Good software tracks this state by state.
Telangana PT: Rs. 200 per month for salaries above Rs. 20,000, nil below Rs. 15,000, and Rs. 150 for the Rs. 15,001 to Rs. 20,000 slab. Your payroll tool must auto-apply this for every Telangana-located employee, every month. See the full Telangana Professional Tax breakdown.
How We Evaluated the Best Payroll Software in India
We measured 6 factors that separate strong India-ready payroll tools from generic HR platforms: statutory depth and update speed, multi-state PT handling, attendance-to-payroll integration, total cost over 3 years, ease of use for HR and employees, and best-fit company size.
We compared the platforms HR and finance teams actually shortlist in India, across startups, SMBs, mid-market, and enterprises. We drew on current product documentation, public pricing, G2 and SoftwareSuggest review patterns, and how each tool is positioned across 2026 buyer guides.
Comparison of Top Payroll Software Companies in India
The global HR payroll software market reached $7.3 billion in 2023 and will hit $18.9 billion by 2032, growing 11% a year as SMBs and mid-market companies retire spreadsheets and move payroll to the cloud. Indian buyers carry an extra compliance load on top: PF, ESI, TDS, and 17 different state Professional Tax rules apply every cycle, and miss-filing any one of them triggers penalties.
The table below shortlists 10 payroll platforms that handle the full Indian statutory stack. We scored each one on five factors that decide real-world fit: statutory depth, multi-state Professional Tax handling, attendance-to-payroll integration, transparent pricing, and best-fit company size. Scan the table to narrow your shortlist in under a minute, then drop into the detailed reviews further down.
| # | Software | Best for | Payroll strength | Statutory coverage | Pricing (approx.) |
|---|---|---|---|---|---|
| 1 | factoHR | SMBs, mid-market, manufacturing | Attendance-driven payroll + multi-state compliance | Full: PF, ESI, TDS, PT, LWF | Custom / quote-based |
| 2 | PeopleStrong | Large Indian enterprises | Embedded payroll inside Alt HCM suite | Full statutory + Code on Wages | Custom / quote-based |
| 3 | Keka HR | Tech mid-market | One-click payroll with modern UX | Full statutory | From ~Rs. 6,999/month |
| 4 | Zoho People | Zoho ecosystem users | People + Payroll + Books integration | Full statutory | From ~Rs. 60/employee/month |
| 5 | Oracle | MNCs and large enterprises | Global HCM with India payroll module | Full + global standards | Enterprise custom |
| 6 | RazorpayX Payroll | Startups | Salary payouts + statutory filings in one flow | Full statutory | From ~Rs. 100/employee/month |
| 7 | GreytHR | Small business | Mature compliance engine, free for up to 25 | Full statutory | Free up to 25 employees, then paid |
| 8 | ADP India | MNCs, managed payroll | Bureau-managed payroll filings | Full + bureau-managed | Custom / quote-based |
| 9 | HROne | Multi-state mid-market | Auto PT/LWF across states | Full statutory | From ~Rs. 85/user/month |
| 10 | Darwinbox | Large enterprises | India-native payroll inside unified HCM | Full + new wage codes | Custom / quote-based |
Pricing is indicative from public 2026 sources. Confirm current rates with each vendor.
Top 10 Best Payroll Software in India for 2026 (Detailed Reviews)
1. factoHRBest Overall Payroll Software for Indian Businesses
Best For
Indian SMBs and mid-market companies (50 to 10,000+ employees) in BFSI, manufacturing, pharma, IT services, retail, and logistics with distributed or shift-based teams.
Key Features
- Formula-driven payroll engine that lets you build unlimited earning, deduction, and reimbursement components, then apply them across pay groups, branches, or entities without re-keying.
- Multi-state statutory automation for PF, ESI, TDS, Professional Tax, and LWF, with rule updates pushed by the factoHR team within days of state notifications, so your next run uses the new slabs without manual edits.
- Biometric, facial recognition, GPS, and geo-fenced attendance that feeds payroll in real time, so overtime, late marks, and loss-of-pay calculate accurately across distributed teams.
- Employee self-service mobile app for payslips, tax declarations, leave applications, IT proof uploads, and Form 16 downloads, which cuts HR ticket volume by 60% on average.
- Audit-ready compliance reports plus Form 16, Form 24Q, ECR files, and PF challans generated in one click, without finance teams re-doing the math.
- Multi-entity payroll on a single platform for group companies running separate PANs, with consolidated reporting at the holding-company level.
Pros
- Deepest multi-state India statutory engine in its price band, updated faster than most competitors.
- Payroll runs from biometric and GPS attendance, not from Excel exports that break every cycle.
- Strong mobile employee self-service cuts HR ticket load and helps adoption above 90%.
Cons
- Public pricing not published, so you need a demo for an exact quote.
- Very small teams under 10 employees may not use the full depth on day one.
factoHR was built India-first, not localized from a global product, which shows up in three places. State PT slabs apply automatically by employee work location across all 17 PT-levying states, so a Maharashtra branch and a Telangana branch run correctly on the same payroll. The compliance engine ships new PF ceilings, TDS slabs, and LWF changes the same week the government notifies them. And manufacturing-friendly features (contract labour, shift differentials, attendance-based overtime) are native, not bolted on.
Curious How factoHR Scores for Your Team Size?
15-minute demo, live data, real PF/ESI/TDS/PT walkthrough.
Book a Free Demo →2. PeopleStrongBest for Large Indian Enterprises Wanting Payroll Inside One HCM Suite
Best For
Large Indian enterprises (1,000 to 50,000+ employees) wanting payroll inside the same platform as recruitment, performance, and core HR.
Key Features
- India-native payroll engine with PF, ESI, TDS, PT, LWF, and Code on Wages readiness.
- Multi-entity, multi-country payroll in one workflow for group structures.
- Embedded inside Alt HCM, so attendance and leave feed payroll without exports.
- AI-assisted query handling (Jinie chatbot) for employee payslip and tax questions.
- Pre-built compliance dashboards for audit, finance, and HR reviews.
- Strong analytics layer with payroll cost trend reports across business units.
Pros
- Strong India-native compliance depth backed by 20+ years of payroll DNA.
- AI assist (Jinie) reduces repetitive HR queries from employees.
- Tight integration between recruitment, performance, and payroll inside one HCM record.
Cons
- Designed for enterprise scale, so it feels heavy for teams under 500 employees.
- Implementation typically runs 8 to 16 weeks for full HCM rollouts.
PeopleStrong was built in India for Indian enterprises, so it knows the compliance landscape from inside. Payroll handles regional payroll quirks (state-specific PT, LWF cycles, and bonus calculations under the Payment of Bonus Act) without custom development. The platform also serves multi-country teams from a single HCM record, useful for Indian conglomerates with subsidiaries across South Asia and the Middle East. Strong analyst recognition in Gartner and Forrester reports lends purchase-decision confidence to procurement teams.
3. Keka HRBest Payroll for Tech Mid-Market With the Cleanest UX
Best For
Mid-market tech, IT services, and professional services companies (100 to 2,000 employees) that want modern UX over deep manufacturing-floor depth.
Key Features
- Guided one-click payroll with built-in PF, ESI, PT, and TDS calculation.
- Statutory engine updates rolled out as a managed service.
- Payroll, performance, attendance, and leave share one employee record.
- Mobile-first self-service for payslips, declarations, and reimbursements.
- Configurable salary structures and reimbursement categories.
- Integrated expense management for travel and reimbursement payouts.
Pros
- Top-rated HRMS interface in India, drives high employee adoption.
- Tight integration across attendance, leave, performance, and payroll.
- Clear, monthly Indian-rupee pricing instead of opaque enterprise quotes.
Cons
- Multi-entity and complex statutory depth lighter than dedicated enterprise tools.
- Factory-floor payroll (contract labour, shift differentials) often needs customisation.
Keka HR was built in Hyderabad and serves Indian payroll out of the box. PT slabs apply by employee location, the system files Form 24Q and generates Form 16, and the salary structures fit Indian CTC conventions (basic, HRA, special allowance, employer PF). The product also publishes regular compliance updates that arrive in the platform without IT involvement. Strong fit for IT services firms scaling from 100 to 1,500 employees who want a clean payroll workflow without enterprise consulting bills.
4. Zoho PeopleBest Payroll for Businesses on the Zoho Ecosystem
Best For
Indian SMBs already on Zoho Books or Zoho One (10 to 500 employees), and bootstrapped startups that want low entry pricing.
Key Features
- Native sync with Zoho Books for journal entries and Zoho Payroll for salary processing.
- Automated PF, ESI, PT, and TDS calculations with state-wise PT support.
- Form 16 generation and direct e-filing of statutory returns.
- Employee self-service portal for payslips, tax declarations, and IT proofs.
- Built-in attendance and leave tracking that flows into payroll runs.
- Affordable per-employee pricing with a free tier for the smallest teams.
Pros
- Native Zoho Books integration removes accounting friction completely.
- Among the lowest entry pricing in serious Indian payroll tools.
- Quick self-serve setup, usually under 2 weeks for SMBs.
Cons
- Enterprise depth and complex shift-based payroll are limited.
- Support quality can be inconsistent at higher employee counts.
Zoho is an Indian company headquartered in Chennai, so its payroll product reflects Indian compliance natively. PT slabs auto-apply by work location, TDS calculations use the current Section 192 logic, and the system files Form 24Q without manual exports. The real win is the Zoho Books integration: payroll journal entries hit your books automatically, which Indian SMB founders running their own finance function find genuinely useful. Best for under-500-employee teams that already use Zoho One or Zoho Books.
5. OracleBest Payroll for MNCs and Large Enterprises With Global Operations
Best For
MNCs with Indian subsidiaries (1,000+ employees) and large Indian enterprises already running Oracle ERP or HCM.
Key Features
- India-localised payroll under the Oracle Fusion HCM Cloud umbrella.
- Multi-country payroll across India, US, EMEA, and APAC on one record.
- Pre-built statutory dashboards for PF, ESI, TDS, and PT.
- AI-driven payroll anomaly detection before each run.
- Tight integration with Oracle ERP for accounting and audit.
- Strong enterprise security with role-based access and audit logs.
Pros
- One global vendor for HCM, payroll, and ERP across countries.
- Strong enterprise security and compliance certifications.
- AI anomaly detection catches payroll errors before salary credits go out.
Cons
- Implementation timelines run long, typically 6 to 12 months for full HCM rollouts.
- SMBs and lower mid-market find the price tag and complexity heavy.
Oracle India payroll is the right pick when a multinational HQ standardises on Oracle HCM globally and the India entity needs to follow suit. The product handles Indian statutory rules natively (PF, ESI, TDS, state PT, gratuity, LWF), and updates ship through Oracle quarterly patches. The deeper value is the single HCM record across countries: an Indian employee transferring to the US sees their payroll, benefits, and talent profile move together. Best for 1,000+ employee Indian operations under a global HQ.
6. RazorpayX PayrollBest Payroll for Startups Wanting Salary Payouts Plus Compliance in One Flow
Best For
Startups and growing tech teams (5 to 200 employees), especially Razorpay banking customers.
Key Features
- One-click salary disbursement on Razorpay payment rails.
- Automatic TDS, PF, ESI, and PT filings with a clean audit trail.
- Contractor payments with correct TDS treatment under Section 194J/194C.
- ESOP grant tracking and payroll integration.
- Bulk salary processing in under 3 clicks for monthly runs.
- Self-serve onboarding designed for founders without HR teams.
Pros
- Salary payouts and statutory filings happen in a single workflow.
- Clean handling of contractor TDS alongside salaried staff.
- Fast self-serve onboarding, often live in under a week.
Cons
- Enterprise features and deep HR breadth are limited.
- Most companies outgrow it past 200 to 300 employees.
RazorpayX Payroll fits the Indian startup stack perfectly. It plugs into Razorpay business banking, files Indian statutory returns automatically (PF, ESI, Form 24Q, Form 16), and handles contractor TDS correctly under Section 194J and 194C, which most foreign tools miss. Founders running their own payroll without an HR hire get clean compliance without a finance consultant. Best for seed to Series B Indian startups (5 to 200 employees) that want compliance handled while they focus on product.
7. GreytHRBest Free Payroll Software for Indian Small Businesses
Best For
Indian small businesses and lower mid-market teams (under 250 employees) that put compliance accuracy first and want a battle-tested platform.
Key Features
- Free payroll for up to 25 employees, including statutory filings.
- Statutory returns including PF, ESI, PT, TDS, Form 24Q, Form 16, and Form 12BA.
- Configurable salary components, reimbursements, loans, and FNF settlements.
- Direct bank integration for batch salary transfers.
- Multi-state PT handling for distributed teams.
- Strong reporting library with 100+ payroll reports.
Pros
- Mature compliance engine, decades of Indian payroll experience.
- Free plan removes upfront commitment for small teams.
- Strong direct bank integration for salary payouts.
Cons
- Interface and broader HR features feel dated compared to newer platforms.
- Fast-growing teams often outgrow it after 250 employees.
GreytHR was built for Indian payroll specifically, not adapted from global software. The compliance engine handles every statutory rule Indian SMBs face: PF, ESI, TDS, state PT (all 17 levying states), LWF, gratuity, and bonus calculations under the Payment of Bonus Act. The free tier for sub-25-employee teams is rare in serious payroll software anywhere. Best for Indian small businesses that prioritise reliable compliance over a flashy interface, especially in services and trading sectors where teams stay under 100 for years.
8. ADP IndiaBest Managed Payroll for MNCs Operating in India
Best For
Multinationals with Indian subsidiaries (300+ employees) and large Indian enterprises that prefer managed payroll over self-service.
Key Features
- Bureau-managed payroll handles filings and government queries end to end.
- Native PF, ESI, TDS, and PT handling with regular update cadence.
- Multi-country payroll under a single ADP vendor relationship.
- Compliance health dashboards for finance and audit teams.
- Strong data security with global SOC 2 and ISO certifications.
- Dedicated India client success teams in Hyderabad and Mumbai.
Pros
- Bureau-managed option offloads filings and government correspondence.
- Single global vendor across multiple countries simplifies MNC procurement.
- Strong statutory update cadence backed by a dedicated India compliance team.
Cons
- Self-service and modern UX lag India-native platforms.
- Implementation timelines tend to run longer than SaaS-first competitors.
ADP India sits at the intersection of global scale and Indian compliance depth. The bureau model is what makes it stand out: ADP handles your PF ECR filings, ESI challans, TDS Form 24Q, and government correspondence as a managed service, which removes finance-team workload. Indian statutory rules apply natively (PF, ESI, TDS, state PT, LWF, gratuity), and updates ship through ADP's India compliance team within days of government notifications. Best for MNC India entities that already use ADP elsewhere globally.
9. HROneBest Payroll for Multi-State Mid-Market Operations
Best For
Mid-market Indian companies (300 to 2,000 employees) with multi-state operations across manufacturing, retail, and services.
Key Features
- PT, LWF, and state rules auto-applied by employee work location.
- Configurable salary structures with pay groups, variable pay, and arrears.
- Native links to attendance, leave, recruitment, and travel modules.
- Multi-entity payroll for group structures.
- Pre-payroll error detection that flags issues before salaries go out.
- Mobile self-service for payslips and tax declarations.
Pros
- Strong multi-state PT and LWF auto-application across distributed teams.
- Configurable pay groups handle arrears, variable pay, and shift differentials.
- Good native links to broader HR modules for end-to-end employee lifecycle.
Cons
- Very large enterprise scale (5,000+ employees) and global payroll are limited.
- Interface is functional rather than design-led.
HROne earns its spot by handling the multi-state India compliance landscape cleanly. State PT slabs apply automatically based on employee work location, not headquarters, which matters for companies running 10+ branches across states with different PT rules (Maharashtra, Karnataka, Telangana, West Bengal, Tamil Nadu, and Gujarat all differ). LWF cycles, gratuity calculations, and the Code on Wages readiness all ship as managed updates. Best for 300 to 2,000 employee mid-market firms operating across multiple Indian states.
10. DarwinboxBest Payroll for Large Enterprises Inside a Unified HCM Platform
Best For
Large Indian and Asian enterprises (1,000 to 50,000+ employees) with multi-state, multi-entity operations.
Key Features
- India-native statutory engine with automatic updates and Code on Wages readiness.
- PT applied automatically by location with multi-entity payroll on one workflow.
- Payroll runs on the same record as attendance, leave, and core HR.
- AI-assisted payroll anomaly detection before each run.
- Pre-built dashboards for CFO, CHRO, and audit teams.
- Strong analyst recognition (Gartner, Forrester) for enterprise procurement.
Pros
- Recognised enterprise HCM with strong Gartner and Forrester analyst coverage.
- India-native compliance updates and new wage code readiness.
- Multi-entity payroll on a single HCM platform reduces vendor sprawl.
Cons
- SMBs under 200 employees find it heavier than they need for payroll alone.
- Implementation typically runs 6 to 12 weeks for full HCM rollouts.
Darwinbox was built in Hyderabad and serves Indian enterprises first, which shows up in its statutory engine. Every Indian compliance rule (PF, ESI, TDS, state PT across all 17 levying states, LWF, gratuity, bonus, and Code on Wages) applies natively without custom development. Multi-entity payroll on one platform suits Indian conglomerates with multiple PANs, and the analyst recognition from Gartner and Forrester gives enterprise procurement teams the confidence they need. Best for 1,000+ employee Indian enterprises.
Best Payroll Management Software in India by Industry (2026 Picks)
Industry shapes payroll as much as company size does. The table below maps each sector to the right pick and second-line alternatives.
| Industry | Key Payroll Needs | Top Pick | Alternatives |
|---|---|---|---|
| IT and Tech | ESOPs, variable pay, multi-state remote teams | Keka HR | Zoho People · factoHR · RazorpayX |
| Manufacturing | Contract labour, shift differentials, Factories Act overtime | factoHR | HROne · Darwinbox |
| Retail & E-commerce | Part-time staff, shift rosters, commission, store-wise reporting | factoHR | HROne · GreytHR |
| Hospitality & Restaurants | Split shifts, tips, service charges, seasonal payroll | factoHR | HROne · GreytHR |
| Healthcare & Hospitals | 24×7 shifts, on-call pay, consultant TDS, Form 24Q for specialists | factoHR | PeopleStrong · Darwinbox |
| Professional Services | Billable vs non-billable, project-based pay, contractor TDS under 194J | Keka HR | Zoho People · RazorpayX |
Common Buyer Concerns Answered
These are the four questions Indian payroll buyers ask most often before signing a contract.
Is cloud-based payroll software safe for Indian companies?
Yes. Cloud payroll is generally safer than spreadsheet-based payroll, because it keeps a full audit trail, restricts data access to authorised users, and stores backups in encrypted form. Look for vendors with ISO 27001, SOC 2 Type II, and Indian DPDP Act compliance. factoHR, Darwinbox, PeopleStrong, and Oracle all carry these certifications. Avoid any vendor that cannot show its security audit report on request.
How long does it take to migrate from Excel to payroll software?
For most SMBs, the move takes 2 to 4 weeks. Week 1 covers employee master data cleanup, salary structure mapping, and statutory configuration. Week 2 runs the first parallel payroll alongside Excel to catch differences. Weeks 3 and 4 fix gaps and go live. The biggest delay is dirty data: missing PAN, UAN, or bank accounts in your existing records. Clean those up first.
What is the cheapest payroll software in India for small business?
GreytHR offers a free plan for up to 25 employees, which is the cheapest serious option in India. Beyond 25 employees, Zoho Payroll at around Rs. 33 per employee per month is the next-cheapest, followed by RazorpayX Payroll at Rs. 100 per employee per month. For a 50-employee company, GreytHR paid plans start around Rs. 3,495 per month, still under most mid-market alternatives.
Which payroll software is best for 50 to 100 employees in India?
For 50 to 100 employees, the strongest fits are factoHR (deepest compliance), Keka HR (cleanest UX), and GreytHR (lowest price). factoHR suits manufacturing and distributed teams. Keka HR suits tech and services firms. GreytHR suits services firms where price is the top factor. RazorpayX Payroll works if you are a startup already on Razorpay banking.
How to Choose the Right Payroll Software for Your Indian Business
Match the tool to your stage. Under 50 employees pick fast and cheap (RazorpayX, Zoho, GreytHR free). 50 to 250 pick compliance plus attendance (factoHR, GreytHR). 250 to 2,000 pick depth (factoHR, Keka HR, HROne). 1,000+ pick scale (PeopleStrong, Darwinbox, Oracle, ADP).
Payroll Software Recommendations by Company Size
- Startup (under 50): Pick fast setup and low entry cost. RazorpayX Payroll, Zoho People, or GreytHR’s free tier work well.
- SMB (50 to 250): Pick real compliance plus attendance integration. factoHR, GreytHR, or HROne fit here.
- Mid-market (250 to 2,000): Pick depth and modern workflows. factoHR, Keka HR, or HROne fit, depending on industry.
- Manufacturing or field teams: Pick shift, overtime, and contract-labour handling with attendance-driven payroll. factoHR leads here.
- Large enterprise (1,000+): Pick multi-entity scale. PeopleStrong, Darwinbox, Oracle, or ADP India fit.
Four Buyer Filters to Evaluate Any Payroll Software
- Compliance depth: Does it cover PF, ESI, TDS, PT, and LWF, and update automatically?
- Multi-state PT: Does it apply the right slab by employee location without manual edits?
- Attendance link: Does payroll pull from attendance directly, or do you export every cycle?
- Total cost: Add implementation, add-ons, and support, not just the per-employee rate.
Read our complete HRMS software guide or learn how to choose the right payroll software step by step.
See How factoHR Runs Indian Payroll End to End
Multi-state PF, ESI, TDS, and Professional Tax in one flow. Salary calculation straight from biometric and GPS attendance. Free demo, no obligation.
Book a Free Demo →Final Verdict on the Best Payroll Software in India
For most Indian businesses in 2026, factoHR is the best payroll software to start with. It combines multi-state statutory compliance, a flexible salary engine, and attendance-driven payroll in one platform, and it scales from small teams to mid-market and manufacturing operations without enterprise pricing.
If you run a lean startup, RazorpayX or Zoho People work first. If you are a 1,000-plus enterprise, look at PeopleStrong, Darwinbox, Oracle, or ADP India. For most companies in between, factoHR is the safest first shortlist.
See how factoHR handles your PF, ESI, TDS, and Professional Tax in one run. Book a free demo and get a quote for your team size. Explore statutory compliance features in detail.
FAQs About Payroll Software in India
What is the best payroll software in India in 2026?
factoHR is the best payroll software in India for most SMBs, mid-market, and manufacturing companies, thanks to its multi-state compliance and attendance-driven payroll. GreytHR and Zoho People suit small teams, Keka HR fits tech mid-market, and PeopleStrong, Darwinbox, Oracle, or ADP India fit large enterprises. The right pick depends on your size and states.
How much does payroll software cost in India?
Pricing ranges widely. Entry tools start near Rs. 60 to Rs. 100 per employee per month, mid-market platforms like Keka HR start around Rs. 6,999 per month, and enterprise tools use custom pricing. Always add implementation, add-on modules, and support before comparing.
Is cloud based payroll software safe in India?
Yes, when the vendor uses encryption, role-based access, and audited data centres. Cloud payroll keeps a full audit trail and restricts who can see salary data, so it is generally safer than spreadsheets. Check the vendor’s security certifications before you sign.
Which payroll software is best for small business in India?
For small businesses, GreytHR (free up to 25 employees), Zoho People, and RazorpayX Payroll are strong, affordable options. factoHR also fits small businesses that expect to grow and want stronger compliance depth from day one.
Does payroll software handle PF, ESI, TDS, and Professional Tax automatically?
Yes. Modern payroll software calculates PF, ESI, TDS, and Professional Tax automatically and applies state-wise PT slabs by employee location. The better tools also push rule updates on their own, so your next run uses the new rates without manual edits.
How long does it take to set up payroll software in India?
Lightweight tools like RazorpayX and Zoho People go live in days to two weeks. Mid-market platforms take three to six weeks. Enterprise setups run six to twelve weeks. The biggest factor is how clean your existing employee and salary data is.
What is the difference between payroll software and HR payroll software?
Payroll software runs salary processing and statutory filings. HR payroll software adds attendance, leave, recruitment, and performance on the same platform, so data flows into payroll without exports. For most growing companies, an integrated HR and payroll tool reduces errors and saves time.
Is GreytHR free for small business in India?
Yes, GreytHR offers a free plan for up to 25 employees that includes payroll processing, statutory filings (PF, ESI, TDS, PT), and basic reports. Paid plans begin around Rs. 3,495 per month for 50 employees, with module-based pricing above that. GreytHR is the only mainstream Indian payroll vendor with a real free tier.
How do I switch from one payroll software to another in India?
Plan a 4-week migration. Week 1: export employee master data, salary structures, and YTD figures from your current system. Week 2: configure the new platform with statutory rules and run a parallel payroll alongside the old system. Week 3: validate differences and fix gaps. Week 4: go live with the new system and decommission the old one. Migrate just before the financial year if you can, to keep Form 16 reporting clean.
Looking for a local pick? See payroll software in Hyderabad for shortlists tuned to Telangana compliance.
Run One Error-Free Payroll Cycle With factoHR
Hyderabad team, 48-hour setup, all PF, ESI, TDS, and Telangana PT handled automatically.
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