Introduction: Why HR Payroll Software Is Crucial for Small Businesses
Managing payroll in small businesses is often a time-consuming task, prone to manual errors and compliance risks. In 2025, Indian SMEs (Small and Medium Enterprises) are turning to HR Payroll Software to simplify salary calculations, automate statutory compliance, and streamline employee management.
With India's evolving labour laws and the increasing adoption of digital tools, Payroll Software in India is no longer a luxury—it’s a necessity for efficient operations and employee satisfaction.
Key Challenges Faced by Small Businesses in HR & Payroll
Small businesses typically encounter challenges such as:
Manual payroll processing leading to errors
Changing tax laws and statutory regulations like EPF, ESI, PT, and TDS
Lack of dedicated HR staff
Time-consuming attendance and leave tracking
Employee dissatisfaction due to payment delays or slip errors
This is where modern Payroll Management Software comes in—offering automation, accuracy, and peace of mind.
Criteria for Ranking the Top 10 Software
We evaluated the top HR payroll solutions for small businesses based on:
Ease of Use
Automation of salary & compliance
Scalability
Pricing & Affordability
Integration with HR, attendance, and accounting systems
Support for Indian labour laws
Customer Support & Onboarding
Detailed Comparison Table: Features | Pricing | Suitability
Software | Key Features | Pricing (Monthly) | Best For |
TankhaPay | Salary automation, EPF/ESI/PT, reports | Starts ₹49/user | SMEs, startups |
Zoho Payroll | TDS, payslip automation, Zoho integration | Starts ₹100/user | Tech, SaaS businesses |
GreytHR | Compliance engine, HRMS, mobile app | Starts ₹349/month | Retail, healthcare |
RazorpayX Payroll | Full-stack HRMS + payroll | Starts ₹100/employee | Finance, agencies |
Keka | Performance + payroll + HR analytics | Custom pricing | Mid-sized firms |
Opfin | Automated payroll + statutory payments | ₹149/employee | Agencies, consultants |
ZingHR | HR + payroll + AI-powered insights | Custom pricing | Enterprises, SMEs |
SumHR | Salary, attendance, TDS & leave integration | ₹49/user | Startups |
Pocket HRMS | Cloud-based HRMS with payroll | ₹2499/month | Manufacturing |
Beehive HRMS | Payroll with HR compliance tracking | On request | Education, NGOs |
Top 10 HR Payroll Software for Indian SMEs
Let’s explore each software in brief:
1. TankhaPay
Why it stands out: Tailored for Indian SMEs, TankhaPay automates salary disbursement, EPF/ESI/PT compliance, TDS deductions, and generates statutory reports.
Best for: Businesses with <500 employees looking for simplicity and compliance assurance.
Pros: Affordable, mobile access, ESIC-ready, Delhi-based customer support.
2. Zoho Payroll
Highlights: Seamless Zoho ecosystem integration, TDS filing, and direct bank transfers.
Ideal for: Startups and companies already using Zoho Suite.
3. GreytHR
Strengths: Highly popular among Indian SMEs for compliance updates and HR workflows.
Includes: Leave, attendance, and mobile employee self-service.
4. RazorpayX Payroll
Advantages: Automates employee tax declarations, pays employees on time, and generates Form 16.
Banking + Payroll: Works well for small businesses managing both in one tool.
5. Keka
USP: Comprehensive HR with a performance-focused dashboard.
Flexible: Best for growth-stage businesses with evolving HR needs.
6. Opfin
Unique Feature: Works on top of Razorpay; automates compliance + payments.
Simple: Great for consultants and tech-first teams.
7. ZingHR
AI + Payroll: Uses analytics to optimise HR operations.
Suited For: Fast-growing enterprises that need robust systems.
8. SumHR
Budget Friendly: Flat pricing model works well for tight budgets.
SaaS-first: Excellent for tech startups and remote teams.
9. Pocket HRMS
Cloud-based + Mobile: Full HR suite with extensive payroll features.
Robust Reporting: Ideal for manufacturing and larger teams.
10. Beehive HRMS
Compliance Ready: Integrated statutory management and HR tools.
Sector-Specific: Customizable for education, finance, or healthcare.
Key Features to Look For in a Small Business Payroll Tool
Before choosing any tool, small businesses should ensure it includes:
Automatic Payslip Generation
TDS, EPF, ESI, PT Deductions
Bank Transfer Integration
Employee Self-Service Portal
Leave and Attendance Sync
Mobile Accessibility
Cloud Backup and Data Security
Customisable Reports
These features help reduce manual work, boost efficiency, and improve employee trust.
Cloud-Based vs On-Premise: What Works Better for SMEs?
Feature | Cloud-Based Software | On-Premise Software |
Accessibility | Anytime, Anywhere | Office-based only |
Maintenance | Vendor-handled | Requires IT support |
Cost | Monthly subscription | High upfront cost |
Updates | Auto-updated regularly | Manual upgrades needed |
Best For | Startups, SMEs | Legacy businesses |
Conclusion: Cloud-based payroll software is more cost-effective, scalable, and SME-friendly in the Indian market.
Industry-Specific Recommendations
Retail: GreytHR, Zoho Payroll
Manufacturing: Pocket HRMS, TankhaPay
IT/Tech Startups: SumHR, RazorpayX Payroll
Agencies & Consultancies: Opfin, Keka
Educational Institutions/NGOs: Beehive HRMS
Customised software selection based on your industry improves adoption and ROI.
Expert Tips for Smooth Implementation
Start with a free trial/demo
Map your HR/payroll needs before choosing
Ensure migration support is available
Train your team for better adoption
Check for integrations with attendance & accounting tools
Conclusion: Final Recommendations
As India’s SME sector continues to digitise, choosing the right HR Payroll Software can significantly improve operations, reduce errors, and ensure compliance.
TankhaPay is a top pick for its affordability, Indian labour law alignment, and user-friendly features. However, every business is unique—so match your needs with features, pricing, and support availability.
