Managing human resources efficiently is critical for small businesses in India, where resources are often limited, and compliance with local labor laws is non-negotiable. HR software in India has become a game-changer, automating tasks like payroll, attendance tracking, and employee management, allowing small business owners to focus on growth. In this comprehensive guide, we explore the best free and paid HR software in India for small businesses in 2025, including top platforms like TankhaPay, Zoho People, and Keka, ensuring you find the perfect fit for your needs.
Why Small Businesses in India Need HR Software
Small businesses, often with limited HR staff, face challenges in managing payroll, ensuring compliance with Provident Fund (PF), Employee State Insurance (ESI), and Tax Deducted at Source (TDS), and maintaining employee engagement. HR software in India streamlines these processes, reduces errors, and saves time. Whether you’re a startup with 10 employees or a growing SME with 100, the right HR management system (HRMS) can enhance productivity and compliance while keeping costs in check.
Key Benefits of HR Software for Small Businesses
- Automation: Automates payroll, attendance, and leave management, reducing manual errors.
- Compliance: Ensures adherence to Indian labor laws like PF, ESI, and TDS.
- Employee Self-Service: Empowers employees to manage their data, payslips, and leave requests.
- Scalability: Grows with your business, accommodating more employees and features.
- Cost-Effectiveness: Free or affordable plans suit tight budgets.
Top Free HR Software in India for Small Businesses
Free HR software is ideal for startups and micro-businesses with limited budgets. These platforms offer core HR functionalities, though advanced features may require paid upgrades. Here are the best free HR software options in India for 2025:
1. TankhaPay
TankhaPay offers a free HR tech suite for small businesses, particularly those outsourcing payroll. It’s designed for Indian SMEs, supporting compliance with PF, ESI, and TDS. The platform includes an employee database, leave management, and payroll integrations, making it a robust choice for startups. Its multilingual Employee Self-Service (ESS) app allows employees to access payslips and apply for leaves in their preferred language.
- Key Features: Employee database, leave management, compliance automation, multilingual ESS.
- Best For: Micro-businesses and startups needing free HR tools with payroll outsourcing.
- Pros: Free with payroll services, compliance-focused, easy setup.
- Cons: Limited advanced features in the free plan.
2. Horilla
Horilla is an open-source HRMS that provides a comprehensive solution for small businesses. It includes modules for talent management, attendance tracking, and data analytics. Its customizable nature makes it ideal for businesses with specific needs.
- Key Features: Recruitment, attendance, customizable reports.
- Best For: Small businesses seeking open-source flexibility.
- Pros: Free, highly customizable, cloud-based.
- Cons: Requires technical expertise for setup.
3. OrangeHRM
OrangeHRM is a well-established open-source HR software with a free version suitable for small businesses. It covers employee data management, leave tracking, and performance reviews but lacks payroll management in the free plan.
- Key Features: Employee database, leave management, performance tracking.
- Best For: Small businesses with basic HR needs.
- Pros: Free, scalable, trusted by global brands.
- Cons: Payroll features require a paid plan.
4. Sentrifugo
Sentrifugo is another free, open-source HRMS tailored for SMEs. It offers modules for recruitment, performance management, and employee self-service, making it a good fit for businesses with deskless workers.
- Key Features: Recruitment, performance appraisal, leave management.
- Best For: SMEs with remote teams.
- Pros: Fully free, mobile-friendly.
- Cons: Limited customer support for free users.
Top Paid HR Software in India for Small Businesses
Paid HR software offers advanced features, better support, and scalability for growing businesses. These platforms are designed to handle complex HR tasks while remaining affordable. Here are the top paid HR software options in India for 2025:
1. Zoho People
Zoho People is a cloud-based HRMS known for its affordability and user-friendly interface. It offers features like payroll automation, attendance tracking, and employee engagement tools, making it ideal for Indian SMEs.
- Key Features: Payroll, leave management, performance tracking, mobile access.
- Pricing: Starts at ₹48 per user/month (annual billing).
- Best For: Small businesses needing affordable, scalable solutions.
- Pros: Integrates with Zoho suite, compliance-ready, intuitive UI.
- Cons: Advanced analytics require higher-tier plans.
2. Keka HR
Keka HR is a popular choice for Indian SMEs, offering a modern platform with payroll, attendance, and performance management. Its employee-centric approach enhances engagement, and its pricing is competitive.
- Key Features: Automated payroll, leave tracking, mobile app, performance management.
- Pricing: Starts at ₹6,999/month for up to 100 employees.
- Best For: Growing startups and remote teams.
- Pros: Strong payroll module, user-friendly, compliance-focused.
- Cons: Higher cost for smaller teams.
3. GreytHR
GreytHR is tailored for Indian businesses, excelling in payroll automation and statutory compliance. It’s widely used by SMEs for its robust features and support for labor law compliance.
- Key Features: Payroll, compliance, attendance, employee self-service.
- Pricing: Starts at ₹3,495/month for up to 50 employees.
- Best For: SMEs focused on compliance and payroll.
- Pros: Strong compliance support, user-friendly.
- Cons: Limited advanced features in lower-tier plans.
4. HROne
HROne is a cloud-based HRMS designed for simplicity and efficiency. It offers payroll, attendance, and performance management, with a focus on reducing administrative workload.
- Key Features: Payroll, recruitment, employee engagement, self-service portal.
- Pricing: Custom pricing, typically affordable for SMEs.
- Best For: Small businesses needing a hire-to-retire solution.
- Pros: Easy to use, scalable, good support.
- Cons: Pricing not transparent without a demo.
5. factoHR
factoHR is a mobile-first HRMS with a focus on payroll and compliance. It’s trusted by over 3,500 businesses and offers seamless integrations with SAP and other systems.
- Key Features: Payroll, attendance, performance reviews, compliance.
- Pricing: Starts at ₹4,999/month for up to 50 employees.
- Best For: SMEs needing mobile accessibility.
- Pros: Mobile-first, compliance-ready, scalable.
- Cons: Setup may require technical support.
6. RazorpayX Payroll
RazorpayX Payroll integrates HR and payroll with banking features, making it ideal for tech startups. It automates salary payments, tax filings, and compliance tasks.
- Key Features: Automated payroll, tax filings, banking integration.
- Pricing: Starts at ₹5,499/month for 50 employees.
- Best For: Tech startups using Razorpay’s ecosystem.
- Pros: Seamless banking integration, compliance-focused.
- Cons: Best for businesses already using Razorpay.
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How to Choose the Right HR Software in India
Selecting the best HR software in India depends on your business needs, budget, and growth plans. Here are key factors to consider:
- Business Needs: Identify whether you need payroll, compliance, or employee engagement features.
- Scalability: Ensure the software can grow with your business.
- Compliance: Look for platforms like TankhaPay that automate PF, ESI, and TDS compliance.
- Ease of Use: Choose software with an intuitive interface to reduce training time.
- Budget: Free options like TankhaPay or low-cost plans like Zoho People are ideal for startups.
- Support: Prioritize vendors with reliable customer support, especially for paid plans.
- Integration: Ensure compatibility with existing tools like accounting or biometric systems.
Why TankhaPay Stands Out
TankhaPay is unique for offering free HR tech with payroll outsourcing services, making it a cost-effective choice for small businesses. Its focus on compliance, multilingual ESS, and support for gig and off-roll workers makes it versatile. For businesses looking to combine HR automation with managed payroll, TankhaPay is a top contender.
Conclusion
Choosing the right HR software in India for your small business can transform your operations, saving time and ensuring compliance. Free options like TankhaPay, Horilla, and OrangeHRM are excellent for startups, while paid platforms like Zoho People, Keka, and GreytHR offer scalability and advanced features for growing SMEs. Evaluate your needs, test free trials, and consider platforms like TankhaPay for a blend of affordability and compliance. With the right HRMS, your small business can streamline HR processes and focus on what matters most—growth.
