Payroll and HR options for Indian MSMEs, compared by type
Types of payroll and HR solution compared by how they are usually priced, which businesses they tend to fit and what to watch for, without rankings or vendor prices.
This table compares types of payroll and HR solution, not individual products. A product named in a row is only an example of that category; it is not a recommendation, ranking or score, and we quote no vendor prices. Read across a row to see how the type is usually priced and where it tends to fit, then test two or three products of the types that suit you with the best-fit method and the selection checklist. Price figures elsewhere on this site are illustrative ranges.
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| Payroll option | How it is usually priced | Tends to fit | Watch out for |
|---|---|---|---|
| Spreadsheet plus a CA or consultant for filings | No software fee; staff hours plus a monthly or per-return professional fee | Up to about 10–15 employees in one state with simple salaries | Formula errors, no audit trail, key-person risk, TDS projections and labour code wage tests done by hand |
| Payroll feature in accounting software (e.g. TallyPrime payroll) | Included in or added to the accounting licence; often flat rather than per employee | Small teams whose accountant already runs the books in that software | Depth of statutory files, employee self-service and attendance varies; check what updates the licence covers |
| Payroll-only SaaS (e.g. Zoho Payroll, RazorpayX Payroll) | Per employee per month, sometimes with a base fee or minimum; annual billing often cheaper | 10–200 employees wanting statutory payroll, payslips and filings without a full HR suite | Attendance, leave or expense modules may cost extra; check multi-state PT and LWF coverage |
| Payroll plus core HR suite (e.g. greytHR, Keka) | Per employee per month in tiers or bundles of modules | Growing MSMEs that want leave, attendance, self-service and payroll in one place | Tier jumps for features like shift rosters or approvals; per-employee price applies to the whole headcount |
| Full HRMS or enterprise HCM | Per employee per month or per year, often with implementation fees and minimum headcount | Larger or multi-entity groups needing performance, recruitment and complex approvals | Implementation time and cost; paying for modules nobody uses; contracts priced in US dollars for some products |
| Payroll module of an ERP (e.g. Odoo, ERPNext) | Per user or per app inside the ERP subscription, or self-hosted with support costs | Businesses already running inventory, production and accounts in that ERP | Indian statutory localisation may need partner apps; upgrades of the ERP and the payroll pack must stay in step |
| Open-source or self-hosted HR (e.g. Frappe HR) | No licence fee; hosting, implementation and support paid to staff or a partner | Firms with in-house IT or a reliable partner and a wish to control data | You own statutory updates, security and backups; check who updates rules when they change |
| Outsourced payroll bureau | Per employee per month or per payslip, sometimes plus filing fees | Firms without payroll staff, or with high churn and many sites | You remain legally responsible as employer; insist on inputs cut-off, review rights and data return on exit |
| Staffing or contract-labour provider running payroll | Margin or service charge on the wage bill | Seasonal, project or shop-floor workforces engaged through a contractor | Principal employer obligations remain; verify the contractor's PF, ESI and wage payments every month |
Product names are examples of a category only and may fit more than one row. We have not tested, scored or ranked them and we quote no vendor prices; check each vendor's current public price page and get a written quote. Statutory figures change by notification: confirm EPF on EPFO, ESI on ESIC, labour code rules on the Ministry of Labour and Employment and the e-Gazette, and TDS on salary on the Income Tax Department website. GST at 18% generally applies to software and payroll services; see CBIC GST.