7 Best Payroll Management Software In India: Features, Costs, Benefits & Tips

2. RazorpayX

RazorpayX Payroll is designed for startups and small to medium-sized enterprises (SMEs) in India. It offers automated payroll processing, compliance management, and employee benefits administration.

Pros:

Good for startups

Has a user friendly interface.

Cons:

Customer support response time can be slow.

Limited wallet and EMI payment options.

Pricing:

Prime plan starts at 2499 per month. (0-20 employees).

Elite Plan starts at 5499 per month (upto 50 employee)

For enterprise employees (100+) , price available on request.

3. HROne

HROne is an HR and payroll software solution for Indian businesses. It offers features like payroll processing, attendance management, and employee self-service.

Pros:

Comprehensive HR and payroll features.

User-friendly interface.

Detailed reports and analytics.

Cons:

Pricing details are not publicly available.

Integration with other systems may require additional effort.

Price: Available on request

4. greytHR

greytHR is a cloud-based payroll and HR software suitable for small and medium businesses in India. It automates salary calculations, leave management, and statutory compliance.

Pros:

Intuitive user interface.

Prompt customer support.

Comprehensive payroll and HR features.

Cons:

Site response time can be slow.

Integration with other systems may be challenging.

Pricing:

Essential Plan: ₹3,495/month for 50 employees

Growth Plan: ₹5,495/month for 50 employees

Enterprise Plan: ₹7,495/month for 50 employees; ₹100/month per additional employee.

5. Zoho Payroll

Being in the industry for 25+ years, Zoho is another top payroll software in India. The payroll software by Zoho offers payroll processing, tax calculations, and compliance management for Indian businesses.

Pros:

Seamless integration with Zoho suite.

Automated tax calculations and compliance.

Employee self-service portal.

Cons:

Limited advanced HR features.

Customization options may be restricted.

Pricing:

Standard: ₹50 per employee per month.

Professional: ₹100 per employee per month.

Premium: ₹200 per employee per month.

6. BambooHR

BambooHR is an HR software solution that includes payroll processing, employee self-service, and performance management. While not specifically tailored for Indian businesses, it offers a range of HR features.

Pros:

Comprehensive HR management features.

User-friendly interface.

Customizable workflows.

Cons:

Not specifically designed for Indian payroll compliance.

Pricing can be high for small businesses.

Pricing:

Price on request.

7. Kredily

Kredily is a free HR and payroll software designed for Indian businesses. It offers features like attendance management, payroll processing, and employee self-service.

Pros:

Free to use.

User-friendly interface.

Comprehensive payroll and attendance features.

Cons:

Limited advanced HR features.

Customer support may be limited.

Pricing: Free

How Can Payroll Software Help Indian Businesses?

In India, we have labour laws and regulations to follow. Unlike other countries, our laws are more intricate and change with political changes. Besides, tax filing requires calculating deductions, provident funds, and professional tax calculations on salary.

An HR Payroll management software makes this process much easier. Here's how it helps:

Saves Time and Reduces Errors – It automates salary calculations, tax deductions, and payments, avoiding manual mistakes.

Ensures Compliance with Laws – It keeps up with Indian tax laws like GST, provident fund (PF), and professional tax, so businesses don’t have to worry about fines.

Simplifies Tax Filing – It calculates taxes, generates reports, and helps file returns quickly.

Tracks Attendance and Leaves – It manages employee attendance and leaves records without manual tracking.

Provides Payslips Instantly – Employees can download payslips anytime without waiting for HR.

Gives Employees Self-Service Access – Employees can check their leave balance, request time off, and view salary details online.

How Can You Choose The Best Payroll Management Software For Your Business?

Choosing a payroll management software for your business might sound like a task, but with a structured process, you can do that. Here is a simple step-by-step guide to help you make an informed decision:

Step 1: Identify Your Business Payroll Needs

Assess whether your payroll requires simple calculations or if you have complex needs like varying wage rates, overtime calculations, and benefits management.

Consider how often you pay employees (weekly, bi-weekly, monthly) and whether you need to support multiple pay schedules.

Step 2: Decide Your Payroll Software Budget

Evaluate your budget for both the initial purchase and any recurring costs, such as monthly fees or annual subscriptions. Evaluate your budget for both the initial purchase and any recurring costs, such as monthly fees or annual subscriptions. Compare different pricing structures and see which offers the best value for your desired features. This will give you an idea of when you should shortlist some software.

Step 3: Evaluate Ease of Operations and Intuitive Interface

Consider how much training staff will require because that will also add to your training costs. Choose a software that is user-friendly and easy to navigate for both HR staff and employees.

Step 4: Check Integration with Other ERP Systems

Ensure the payroll software can integrate seamlessly with your existing HRIS, accounting, or other ERP systems for efficient data flow.

Step 5: Assess Scalability Needs for Future Growth

Choose software that can accommodate your business’s growth through increased employee counts or additional functionalities. Look into how easy it is to upgrade or expand the software capabilities as your business needs change.

Step 6: Investigate Security Standards and Compliance

Make sure the payroll software keeps your data safe with strong security measures, like encryption. Also, check that it complies with national laws and regulations to avoid any legal issues with payroll management.

Benefits Of Payroll Software For Organizations

It’s a myth that payroll management software is helpful only for corporations or MNCs. In reality, 50% of small businesses use payroll softwares today. Among these, 25% reported improved legal compliance and employee retention.

The following are the benefits it offers:

Streamlined Payroll Processing and Reporting

Managing payroll manually today can be very time-consuming for you. Besides, you may end up making calculation mistakes. Payroll software automates salary calculations, tax deductions, and payment schedules. Suppose you need to file for deductions. The software will generate payslips and tax forms in minutes, saving hours of manual effort for every pay cycle.

Improved Compliance and Tax Accuracy

Staying compliant with ever-changing tax regulations can be challenging. For instance, GST was introduced in 2017, which required businesses to overhaul their tax systems to meet new compliance standards. But if you invest in a payroll system, it will automatically update tax rates and file for TDS or input tax credits.

It also helps prevent costly errors, such as missed deadlines or incorrect calculations, giving businesses peace of mind.

Enhanced Employee Satisfaction and Transparency

Employees value transparency when it comes to their pay. Payroll software includes self-service portals where employees can view their payslips, tax information, and leave balances anytime. This feature not only boosts trust but also reduces HR inquiries.

Customization for Unique Business Needs

Every organization has its own payroll requirements—be it different salary structures, bonuses, or deductions. Payroll software offers customizable solutions to match business-specific rules and policies.

As businesses expand, managing payroll becomes more complex. A good payroll management system is the one that:

Can grow with your organization

Easily accommodate more employees

Adapt to new compliance laws

Meet advanced reporting needs.

Whether you're a startup or a mid-sized firm eyeing expansion, payroll software allows you to scale without stress.

What Is HR Payroll Software And How Does It Differ From General Payroll Tools?

General payroll tools are primarily used to calculate and distribute employees' salaries, their compensation, and benefits. However, HR payroll software combines all payroll processing functions into one. So, it not only handles payroll calculations and disbursements but also -

Provides tools for managing employee records

Calculates benefits administration

Tracks work time and off time

Monitors performance (weekly, quarterly, and yearly)

Regulates compliance with labour laws.

Standard payroll tools typically lack these broader functionalities that HR payroll software offers. Some of the features of HR payroll software are:

Reporting and Analytics

HR payroll software can create reports that show information about your employees and payroll expenses. This way, you can understand how much you are spending on salaries, bonuses, and benefits. You can also see trends over time, like if you hire more employees, what will be the benefits over hiring costs and so on. Such insights can help you make better decisions for your business.

Integration with HR Functions

HR payroll software combines payroll and HR tasks in one system. This means you can handle recruitment tracking, performance management, employee onboarding, and training administration all together.

It saves time and reduces payroll mistakes because all employee information is stored in one place. For example, when a new employee is hired, their pay information is set up automatically without needing to enter it in multiple systems.

Employee Self-Service Portals

Employee portals are where the staff can view their pay stubs, manage benefits, and update personal information like bank details, health records, and other documents. This feature is great for HR professionals as they get freed from the burden of administrative work.

Time and Attendance Tracking

Many HR payroll systems like Ekklaya’s eHRX offer integrated time tracking tools, allowing organizations to monitor employee attendance, hours worked, and leave management.

Features	HR Payroll Software	Standard Payroll Tools
Integration	Combines HR and payroll functions	Focus on the payroll only
HR Capabilities	Includes employee management features	Minimal HR functionality
Reporting	Advanced reporting and analytics	Basic payroll reports
Time Tracking	Integrated time and attendance modules	May require separate systems
Self-Service Options	Comprehensive employee portals	Limited or no self-service access
Suitable for	Supports large and complex organizational needs	Smaller businesses with limited staff
Compliance Management	Handles HR compliance regulations	Focuses on payroll compliance