Best HRMS for small business in India (2026): how to choose
Five checks that matter more than a feature count, a table of options with the prices each vendor lists, and the questions to ask in a demo.
Quick answer
Choose an HRMS for a small Indian business on five checks: it runs statutory payroll (PF, ESI, professional tax, TDS) for your states, has a mobile self-service app, keeps pricing predictable past 50 and 100 employees, goes live in under three weeks, and lets you export your data if you leave. Test it on your own salary structure.
The five checks
Judge on these, not on the length of a feature list.
1. Statutory payroll for your states
PF, ESI, professional tax, labour welfare fund and TDS, by state. Test the edge cases: new rules, wage ceilings and the 50% wage rule under the labour codes.
2. A usable mobile app
Staff should mark attendance, apply for leave and download payslips from a phone without help from HR.
3. Pricing that stays predictable
Ask for the price at 50, 100 and 250 employees. Check what happens to the price when you add a module.
4. Realistic go-live
Under three weeks is a good benchmark for a small business. Ask who migrates the data and whether a parallel payroll run is included.
5. Data export and exit terms
You should be able to take your employee and payroll history with you. Ask for the notice period and the export format.
Options at a glance
Prices and categories are as each vendor lists them, checked October 2026. This is a map of options, not a ranking.
| Product | Category | Listed pricing | Often chosen by |
|---|---|---|---|
| greytHR | HR & payroll software | Plans from ₹2,495/month for up to 50 employees, then ₹45–₹85 per employee (as listed on greythr.com). | Small teams whose main need is compliant payroll |
| sumHR | HR software for small businesses | ₹1,428 per employee per year (as listed on sumhr.com). | Small businesses that want a simple per-employee price |
| Zoho People | HR software within the Zoho suite | Per-employee plans; payroll, accounting and CRM are separate Zoho products and subscriptions. | Teams already on Zoho products |
| Kredily | Free-to-start HR & payroll | Free plan available; paid plans from ₹1,249/month for 25 employees, then ₹50–₹70 per employee (as listed on kredily.com). | Very small teams that want a free plan to start |
| PocketHRMS | HR & payroll software | Plans from ₹2,995/month for 50 employees, then ₹60–₹90 per employee (as listed on pockethrms.com). | Small and mid-sized teams |
| Zimyo | HR & payroll platform | ₹80, ₹160 or ₹240 per user per month, minimum 50 users (as listed on zimyo.com). | Growing teams (minimum 50 users) |
| Keka | HR, payroll & PSA platform | Plans priced per additional employee at ₹90, ₹120 or ₹150 a month depending on tier (as listed on keka.com). | Growing companies that want one HR platform |
| HROne | HR & payroll platform | Plans from ₹4,950/month, plus ₹99–₹130 per additional user (as listed on hrone.cloud). | Mid-sized teams that want a full HR platform |
| factoHR | HR & payroll software, Ahmedabad | Published plans from ₹4,999/month, plus ₹99–₹139 per additional employee (as listed on factohr.com). | Growing companies |
| Sleet | HR, payroll, GST accounting and tasks in one login | From ₹350 per user per year (see pricing) | Businesses that run HR, payroll and billing together |
Compare two of them directly: Keka vs greytHR, greytHR vs HROne, or see pricing at 50 and 100 employees.
Run a proper trial
The most reliable test is a parallel payroll: process last month’s salaries in the new system and compare net pay for every employee against what you actually paid. Differences point to setup gaps or rule differences, and they are far cheaper to find before you switch.
Questions to ask in any demo
- Does it run PF, ESI, professional tax and TDS for every state we operate in?
- Can we run last month’s payroll in parallel and compare net pay?
- What does it cost at our headcount today and in a year, including GST?
- Does it work with the biometric devices we already own?
- How long is go-live, and who migrates our data?
- What are the exit and data export terms?
Frequently asked questions
What is the best HRMS for a small business in India?
The best one is the one that runs PF, ESI, professional tax and TDS correctly for the states you operate in, has a usable mobile app for your staff, keeps pricing predictable as you grow past 50 and 100 employees, and goes live quickly. Run a demo on your own salary structure before you decide.
How much does an HRMS cost for 50 employees?
On published prices, roughly ₹950 to ₹12,000 a month depending on the vendor and plan, before 18% GST. See the pricing guide for estimates by product.
Do I need an HRMS if I have fewer than 20 employees?
Not always. A spreadsheet can work at very small sizes, but PF and ESI thresholds, state professional tax and leave tracking become error-prone quickly. A low-cost or free plan can remove that risk early.
How long does it take to switch to a new HRMS?
A realistic target for a small business is under three weeks. Ask who migrates your data, and run one parallel payroll before you cut over.
Can an HRMS also handle billing and accounting?
Most HRMS products cover HR and payroll only. Sleet includes GST invoicing and accounting in the same login, which suits businesses that run payroll and billing together.
Want HR, payroll and your books in one place?
See Sleet run a payroll on your own salary structure, with GST invoicing and accounting under the same login.