Best Payroll Software in India

1. Introduction

Payroll is the backbone of every business, but in India, it often becomes a complex and time-consuming process. Managing salaries, tax deductions, PF, and compliance manually increases the chances of errors, penalties, and employee dissatisfaction.

This is where payroll software makes a big difference. For Indian businesses, it ensures timely salary processing, accurate tax calculations, and full compliance with statutory regulations. More importantly, the right payroll software saves valuable time and reduces administrative workload, allowing companies to focus on growth.

In this blog, we’ll explore the Top 10 Best Payroll Software in India to help you find a solution that fits your business needs.

2. What is Payroll Software?

1. Simple Definition:

Payroll software is a digital tool designed to automate and simplify the process of paying employees. It replaces manual calculations and spreadsheets with a system that ensures salaries are calculated accurately, deductions are applied correctly, and payments are made on time. Essentially, it acts as the backbone for managing employee compensation efficiently.

2. Core Functions: 

Payroll software is more than just a calculator—it handles several critical HR and finance tasks, including:

Salary Processing: Automatically calculates employee salaries based on hours worked, overtime, bonuses, and deductions.

Tax Compliance: Ensures correct calculation of income tax, provident fund, professional tax, and other statutory deductions, helping your business comply with Indian tax regulations.

Employee Records Management: Stores detailed records of employees, including personal information, salary history, attendance, leaves, and benefits, making HR management simpler and more organized.

3. Why Do Indian Businesses Need Payroll Software?

Managing payroll manually in India can be a complex and error-prone task due to multiple statutory regulations, diverse employee benefits, and varying salary structures. Here’s why payroll software has become essential for Indian businesses:

1. Challenges of Manual Payroll:

• Time-Consuming Processes: Calculating salaries, deductions, and bonuses manually takes hours, especially in companies with many employees.
• Higher Risk of Errors: Manual calculations can lead to mistakes in salary, taxes, or benefits, which can upset employees and attract penalties.
• Difficulty in Compliance: Indian payroll involves several statutory obligations like TDS, PF, ESIC, gratuity, and professional tax. Managing these manually increases the risk of non-compliance and legal issues.

2. Benefits of Automation with Payroll Software:

• Accuracy: Payroll software automatically calculates salaries, taxes, and deductions, minimizing errors and ensuring employees are paid correctly every time.
• Time Efficiency: Automation drastically reduces the time spent on payroll, freeing HR teams to focus on strategic tasks like employee engagement and growth planning.
• Compliance with Indian Laws: Payroll software stays updated with the latest regulations, ensuring adherence to TDS, PF, ESIC, and other statutory requirements. This protects businesses from fines and legal complications.
• Better Record Keeping: All employee records, payslips, and tax documents are stored digitally, making audits and reporting seamless.

“In short, Payroll software is not just a tool for salary processing—it’s a comprehensive solution that ensures accuracy, compliance, and efficiency for Indian businesses of all sizes.”

4. Key Features to Look for in Payroll Software in India

Choosing the right payroll software can make a huge difference in how smoothly your business manages salaries and compliance. Here are the essential features you should look for:

1. Automated Salary Calculation:
 Manual salary calculations are time-consuming and error-prone. Payroll software should automatically compute salaries, bonuses, overtime, and deductions accurately, saving you hours every month.

2. Statutory Compliance:
 Indian payroll comes with legal requirements like TDS, PF, ESIC, and Professional Tax. The right software ensures you stay up-to-date with regulations, avoiding missed deadlines, fines, or penalties.

3. Employee Self-Service Portal:
 A self-service portal empowers employees to access payslips, tax forms, and leave balances on their own. This reduces HR queries, boosts transparency, and improves employee satisfaction.

4. Integration with HR & Accounting Tools:
 Seamless integration with your HR management and accounting systems reduces duplication of work, ensures smooth data flow, and keeps all departments in sync.

5. Affordability and Scalability:
 The software should fit your budget while growing with your business. Whether you have a small team or hundreds of employees, it should scale effortlessly without compromising features.

6. Time-Saving and Efficiency: (optional punchy addition)
 The right payroll software not only simplifies calculations but also streamlines processes, reduces administrative workload, and frees HR to focus on strategic growth initiatives.

“In short, the best payroll software combines accuracy, compliance, convenience, and growth-friendly features, making payroll management stress-free for Indian businesses.”

5. Top 10 Best Payroll Software in India

Managing payroll efficiently is crucial for every business in India, from startups to large enterprises. The right payroll software not only automates salary calculations but also ensures compliance with statutory regulations like TDS, PF, ESIC, and PT. To help you make the best choice, we’ve compiled a list of the Top 10 Best Payroll Software in India that stand out for their features, ease of use, affordability, and scalability.

1. Efox Payroll Software – Built for Indian Businesses

Among the leading payroll solutions, Efox Payroll Software stands out for its focus on Indian compliance, integration with HR Management Software modules, and user-friendly design—making it a strong choice for startups, SMEs, and large enterprises alike.

Key Features of Efox Payroll Software
Compliance Automation – Auto-calculates PF, ESIC, TDS, Professional Tax, Bonus, and Gratuity

Attendance & Leave Integration – Accurate salary calculations without manual errors

Employee Self-Service Portal – Employees can download payslips, submit tax declarations, and access Form 16 easily

Cloud-Based & Secure – Access payroll anytime, anywhere with enterprise-grade security

Analytics & Reports – Real-time insights for management and decision-making

Scalable Solution – Works smoothly whether you manage 10 employees or 1,000+.

Why Businesses Choose Efox Payroll
Efox Payroll is trusted by companies in sectors like education, healthcare, IT, and manufacturing. Backed by over a decade of expertise from Efox Technologies, it’s designed to eliminate manual work, reduce compliance risks, and integrate seamlessly with Employee Management Software for smoother HR operations.

With affordable pricing, dedicated support, and fast implementation, Efox Payroll Software has become a reliable partner for Indian businesses that want to simplify payroll without compromising compliance.

2. GreytHR

GreytHR is one of the most widely used payroll and HR management software solutions in India. Known for its strong compliance features, it helps businesses automate PF, ESI, and TDS while ensuring accuracy. Its employee self-service and leave tracking system make it a reliable choice for SMEs.

3. Zoho Payroll

Zoho Payroll is part of Zoho’s comprehensive business suite, making it easy to integrate with Zoho Books and Zoho People. It simplifies payroll compliance and offers an intuitive interface, making it especially popular among startups and small businesses looking for a hassle-free solution.

4. Keka HR & Payroll

Keka has gained popularity for its modern and user-friendly interface. Apart from payroll management, it integrates HR functions and employee engagement tools, which makes it suitable for mid-sized organizations that want an all-in-one HR and payroll solution.

5. RazorpayX Payroll

Backed by Razorpay’s fintech ecosystem, RazorpayX Payroll is a digital-first solution. It simplifies compliance by automating PF, TDS, and ESI filings. Startups and tech-driven companies prefer it for its seamless integration with digital payment systems and modern workflows.

6. Pocket HRMS

Pocket HRMS is designed for businesses that need a mobile-first approach to payroll and HR. With its AI-powered assistant and employee management tools, it supports growing organizations in handling payroll and HR processes efficiently, even on the go.

7. HROne Payroll

HROne is a simple yet effective payroll automation tool that focuses on compliance and real-time analytics. It helps HR teams manage payroll with ease while offering insights that support better decision-making for businesses of different sizes.

8. sumHR

sumHR is a cloud-based payroll and HR platform that’s especially startup-friendly due to its affordability and ease of use. It supports payroll automation, reimbursements, PF, and tax deductions, making it a solid option for businesses looking for cost-effective solutions.

9. Saral PayPack

Saral PayPack is a feature-rich payroll software available in both desktop and cloud versions. It is trusted for its strong compliance management and flexibility, catering to organizations that want a traditional as well as modern payroll solution.

10. PeopleStrong Payroll

PeopleStrong is an enterprise-grade HR and payroll platform known for its scalability and AI-driven insights. With support for multi-location compliance and large employee bases, it is ideal for enterprises looking for advanced payroll and workforce management.

6. Comparison Table of the Top 5 Best Payroll Software in India

Software Name	Price (Approx.)	Best Use Case	Key Features	Pros	Cons
Efox-Payroll	Custom Pricing	Small Businesses & Startups, Enterprises, Growing Companies	Automated salary, PF/ESIC, TDS, ESS portal, HR & Accounting integration, Custom Reports & Payslips	Time-saving automation, Compliance ready, ESS portal, Error-free payroll,HR staff training	Integration with some third-party tools could be limited
Zoho Payroll	₹99/employee/month	Small to Medium Biz	Automated salary, PF/ESIC, TDS, Self-service	Easy to use, scalable	Limited advanced reports
GreytHR	₹40–₹100/employee	SMEs, Startups	Payroll, Attendance, Compliance, Reports	Affordable, India-focused	Limited integrations
QuickBooks Payroll	₹299/employee/month	Startups, Medium Biz	Payroll, Tax Filing, Employee Portal	Cloud-based, easy reporting	Higher cost
SAP Success Factors	Custom Pricing	Large Enterprises	Payroll, HR Integration, Analytics	Robust, enterprise-ready	Expensive, complex

7. According to this table, which is the Best Payroll Software in India?

• Summarize based on different needs:
  • Efox-Payroll Best for →  Pure Indian DNA, Affordable Price, Suitable for all types of businesses, Quick implementation (2-Hour Implementation process as per the records). Great Support System (24×7). 15+ Years of Experience.
  • Best for startups → Zoho Payroll
  • Best for SMEs → Keka
  • Best free payroll software → Kredily
  • Best for enterprises → GreytHR

8. How Much Does Payroll Software Cost in India?

Payroll software pricing in India varies widely depending on the features, number of employees, and whether it’s cloud-based or on-premise. Understanding the cost structure helps businesses choose the right software without overspending.

1. Paid Payroll Software:
 Most popular payroll software in India follow a per-employee, per-month pricing model. Some examples:

• Efox-Payroll: Affordable, customizable pricing for every business.
• Zoho Payroll: Starts at around ₹99 per employee/month.
• Keka: Starts at ₹150 per employee/month.
• GreytHR: Around ₹40–₹100 per employee/month depending on fe
• atures.
• QuickBooks Payroll: Starts at ₹299 per employee/month.

Paid options usually offer:

• Automated salary calculation
• Statutory compliance (TDS, PF, ESIC)
• Employee self-service portals
• Integration with HR and accounting tools

2. Free Payroll Software Options:
 Some payroll software providers provide limited free versions suitable for small businesses or startups:

• Basic payroll processing for up to 10–20 employees
• Simple salary calculation and payslip generation
• Limited support for statutory compliance

3. Things to Consider:

• Free versions are great for small teams but often lack advanced features like tax filing, integration, and reports.
• Paid versions provide more automation, accuracy, and compliance support, which saves time and reduces errors for growing businesses.

�� Tip: Compare the features included in the free vs paid plans before deciding. Sometimes paying a little more saves hours of manual work and avoids compliance issues.

9. FAQs (from “People Also Ask”)

1. Is Excel a payroll software?
No, Excel is not payroll software. It can be used for basic salary calculations, but it lacks automation, compliance updates, and employee self-service features that payroll software provides.

2. Which payroll software is free in India?
Some payroll software like Kredily and Zoho People offer free versions with limited features, ideal for startups and small businesses.

3. Is payroll software worth the cost?
Yes, payroll software saves time, ensures compliance, reduces manual errors, and provides accurate salary processing—making it cost-effective in the long run.

4. Which software is mostly used in India for payroll?
Popular payroll software in India includes Efox Payroll, GreytHR, RazorpayX Payroll, Zoho Payroll, and QuickBooks.

5. Which is better, Zoho or QuickBooks for payroll?
Zoho Payroll is better for Indian businesses due to compliance automation, while QuickBooks is more popular among global users for accounting and payroll integration.