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Running payroll manually is a compliance risk in 2026, not just a time problem. The New Labour Codes have introduced a 50% minimum basic pay rule, a 48-hour full and final settlement requirement, and mandatory digital record formats. Any payroll process that cannot keep up with these changes exposes your business to inspection notices and penalties.
This guide compares the 12 best payroll software tools available in India in 2026, with features, pricing in INR, and a clear view of which tool suits your company size and compliance requirements.
Key Takeaways
- Indian payroll tools handle PF, ESI, PT, LWF, and TDS natively.
- Pricing ranges from per-employee monthly fees to enterprise contracts.
- Karnataka compliance must be handled automatically for Bangalore businesses.
- HR Software Bangalore integrates payroll and Karnataka compliance from day one.
What Is Payroll Software and Why Does It Matter in 2026?
Payroll software is a digital tool that automates salary calculations, statutory deductions, payslip generation, and compliance filings. It combines attendance, leave, and employee data into a single processing run, so your payroll team does not have to reconcile spreadsheets at month-end.
The four New Labour Codes are in force. In 2026, it matters more than ever because it ensures compliance with the New Labour Codes, streamlines PF/ESI/Gratuity calculations, supports the 50% wage rule, enables 48-hour full and final settlements, and maintains mandatory digital records for audits.
What to Look for in Indian Payroll Software
Use these six criteria to evaluate any payroll tool before booking a demo.
New Labour Code compliance readiness: Verify if the tool’s salary structure engine enforces the 50% basic pay rule. Ensure full and final settlements can be processed independently of the monthly payroll cycle.
Multi-state statutory support: India has 29 state-level Professional Tax regimes, varying LWF contribution schedules, and state-specific Minimum Wage notifications. Your payroll software must handle the states where your employees are located without manual rate entry.
Payroll and HRMS integration: A tool that integrates with attendance, leave, and employee records eliminates the manual data transfer that causes most payroll errors. The stronger the integration, the lower the error rate.
F&F settlement automation: The 48-hour F&F rule makes the old practice of processing settlements in the next monthly cycle non-compliant. Your tool must support F&F calculations that work independently of the regular payroll run.
Employee self-service: An ESS portal that lets employees download payslips, submit investment declarations, and view Form 16 reduces the volume of routine HR queries.
12 Best Payroll Software in India (2026)
1. HR Software Bangalore
HR Software Bangalore is an automated HR and payroll platform for Indian businesses. Compliance features like Professional Tax slabs, ESI contributions, PF at 12% of basic, and LWF deductions in June and December are handled automatically.
The payroll module connects directly with attendance, leave, and employee records. The platform supports the 50% wage rule under the New Labour Codes and includes the F&F settlement workflow to meet the 48-hour requirement.
Key features:
- 50% basic pay compliance
- Automated Karnataka PT deductions
- PF, ESI, LWF automated
- On-demand F&F processing
- Employee self-service portal
- Digital statutory records
Pricing: Custom pricing based on company size.
Best for: Small, medium, and large businesses that need payroll with local compliance support.
2. greytHR
greytHR is India’s most established cloud payroll platform. Founded in 2009 and trusted by over 20,000 businesses, it is the default starting point for many Indian HR teams moving off spreadsheets. Its strength is compliance accuracy and audit-ready reporting.
Key features:
- Automated salary calculations
- Full PF, ESI, PT, LWF, TDS
- Scheduled paysheet builder
- Form 16, 24Q, challan generation
- Mobile ESS for payslips and leave
- End-to-end payroll workflows
Pricing: Starts around ₹3,495 per month for up to 50 employees.
Best for: Small and mid-size Indian businesses that want a reliable, established payroll platform with compliance.
3. Keka HR
Keka is a modern India-first HRMS widely adopted by tech companies. Its payroll module is connected to attendance and leave data, so salary processing uses real-time inputs rather than manually imported figures. This integration is particularly useful for companies with complex shift patterns or variable attendance.
Key features:
- Salary builder with TDS & CTC
- Geo-fenced, selfie-based attendance
- Integrated reimbursement management
- Automated F&F settlement module
- Payroll analytics & audit logs
- ESS portal for payslips & leave
Pricing: Custom pricing based on company size.
Best for: Mid-size and large companies needing an integrated HRMS with proper attendance management.
4. factoHR
factoHR is an all-in-one hire-to-retire HRMS with a payroll engine built for Indian statutory requirements. It is widely used by SMBs and mid-market companies across India and covers the full payroll lifecycle from salary structure setup through to F&F settlement.
Key features:
- Flexible salary structure builder
- Auto PF, ESI, PT, TDS, LWF
- Pay group configuration by category
- Performance-linked payroll integration
- On-demand F&F settlement module
- Form 16, 24Q, challan generation
Pricing: Starts at ₹4,999 per month for up to 50 employees. ₹69 per employee per month for additional employees.
Best for: Indian SMBs and mid-size companies needing complete payroll and statutory compliance on a single platform.
5. Zoho Payroll
Zoho Payroll is the payroll module within the Zoho business ecosystem. For companies already using Zoho Books for accounting or Zoho People for HR, it delivers a connected payroll workflow without the need for a separate integration. Salary data flows into accounting automatically, and HR records stay in sync.
Key features:
- Auto TDS, Form 16, email payslips
- Employee tax declaration portal
- Integration with Zoho apps
- Custom salary and allowance templates
- State-wise PT and LWF handling
- ESS portal for payslips & IT
Pricing: Starts at ₹1,000 per organization per month, billed annually for 25 employees.
Best for: Small to mid-size businesses and growing enterprises that need a comprehensive payroll management system.
6. RazorpayX Payroll
RazorpayX Payroll is built by Razorpay and targets Indian startups and tech-first companies. Its differentiator is direct banking integration. Salaries are disbursed through Razorpay’s banking infrastructure, so there is no need to generate a separate bank file. Compliance filings are automated alongside payments.
Key features:
- One-click salary disbursement via Razorpay
- Auto PF, ESI, PT, LWF, and TDS filing
- Contractor and freelancer payment support
- Group health insurance integration
- 25+ accounting, biometric, and attendance integrations
- Employee self-service portal for payslips and taxes
Pricing: Custom pricing based on company size.
Best for: Startups and digital-first companies that want fast payroll setup and automated compliance.
Ready to automate payroll and compliance for your Bangalore team?
7. Darwinbox
Darwinbox is an enterprise HCM platform built in India and used by large Bangalore organizations, fast-growing companies, and MNCs. Its payroll module is part of an integrated hire-to-retire suite that handles multi-entity and multi-state payroll at scale.
Key features:
- Multi-entity, multi-state payroll
- Full PF, ESI, PT, LWF, TDS compliance
- AI anomaly detection before payroll
- Integrated recruitment, performance, and leave data
- Advanced payroll analytics and reports
- Mobile-first for HR and employees
Pricing: On request, pricing is typically suited for large companies.
Best for: Large enterprises and Indian MNCs that need a full payroll and multi-state compliance at scale.
8. PeopleStrong
PeopleStrong is an enterprise payroll and workforce management platform with AI-driven zero-touch payroll processing. It is used by large enterprises across India and AsiaPac and processes over six million paychecks annually. Its strength is automation at scale combined with full audit readiness.
Key features:
- Zero-touch payroll: pro-rata, variable pay, F&F
- Multi-state compliance: PF, PT, ESI, LWF, TDS
- Custom approval workflows with logs
- AI chatbot for employee payroll queries
- Workforce analytics: costs, headcount, attrition
- Mobile ESS: payslips, Form 16, reimbursements
Pricing: Custom pricing based on company size.
Best for: Large enterprises and conglomerates needing AI-driven payroll automation and workforce analytics.
9. Qandle
Qandle is a modular HRMS with a flexible payroll engine that lets growing businesses configure their own salary structures rather than fitting into rigid templates. It suits companies that are expanding and need a payroll setup that adapts to new employee categories and locations without a complete system rebuild.
Key features:
- Drag-and-drop salary structure builder
- Auto-calculation: PF, ESI, PT, LWF, TDS
- Off-cycle payroll for corrections/bonuses
- F&F settlement with automatic dues
- Form 16 & 12BA generation
- Integration with attendance, leave, and performance
Pricing: The “Foundation” plan costs ₹2,450 per month for up to 50 employees, with ₹49 per month for each additional employee.
Best for: Growing businesses that need flexible payroll configuration and want to expand HR modules as headcount increases.
10. ZingHR
ZingHR is an AI-powered HCM platform with a mobile-first design and a payroll module that pulls attendance data from AI facial recognition and geo-fencing directly into salary calculations. This makes it a strong fit for companies with large field workforces or manufacturing operations where attendance accuracy directly drives payroll accuracy.
Key features:
- Attendance-linked payroll with AI and geo-fencing
- Full PF, ESI, PT, LWF, TDS compliance
- AI chatbot for HR/payroll queries
- Mobile ESS: payslips, tax, leave, claims
- Analytics dashboard for payroll & productivity
- Modular recruitment, engagement, and survey tools
Pricing: Custom pricing based on company size.
Best for: Mid-to-large enterprises that need a comprehensive, integrated HCM platform covering payroll and compliance.
11. SumoPayroll
SumoPayroll is a lightweight cloud payroll tool built for Indian SMEs that need accurate statutory compliance without the cost or complexity of a full HRMS suite. It covers the core payroll requirements that most small businesses need and is designed to get teams up and running quickly.
Key features:
- Automated TDS, PF, ESI, PT
- Form 16 & 24Q generation
- ESS portal for payslips & IT
- Contractor & freelancer payments
- Cloud-based mobile access
- Reimbursement & advance integration
Pricing: SumoPayroll’s pricing starts at around ₹35 per employee per month.
Best for: Small businesses and startups that need accurate payroll automation and statutory compliance.
12. Deel
Deel is a global payroll and contractor management platform covering over 150 countries. It is the right choice when Indian companies employ people internationally or when international companies want to hire Indian employees in compliance without setting up a local entity.
Key features:
- Multi-country payroll with Indian compliance
- Unified payments for contractors and employees
- Pre-vetted contracts for India and abroad
- One-click global salary disbursement
- Employer of Record for new countries
- Compliance monitoring across jurisdictions
Pricing: Its global payroll services start at about $29 per employee per month.
Best for: Indian businesses with global teams, or international companies that need a single platform for multi-country payroll and compliance.
Quick Comparison: 12 Best Payroll Software in India
| Tool | Best For | Starting Price | Labour Code Ready |
|---|---|---|---|
| HR Software Bangalore | Businesses needing payroll with compliance | Custom pricing based on company size | Yes |
| factoHR | SMBs and mid-size companies needing payroll & compliance | Rs.4,999/month (50 employees), Rs.69 per employee/month extra | Yes |
| greytHR | Small and mid-size businesses want a reliable payroll | Rs.3,495/month (50 employees) | Partial |
| Keka HR | Mid-size and large companies with integrated HRMS | Custom pricing based on company size | Partial |
| Zoho Payroll | Small to mid-size businesses in the Zoho ecosystem | Rs.1,000/month (25 employees, billed annually) | Partial |
| RazorpayX Payroll | Startups and digital-first companies | Custom pricing based on company size | Partial |
| Darwinbox | Large enterprises needing multi-state payroll | On request | Yes |
| PeopleStrong | Large enterprises needing AI payroll and analytics | On request | Yes |
| Qandle | Growing businesses need flexible payroll | Rs.2,450/month (50 employees), Rs.49/month per additional employee | Partial |
| ZingHR | Mid-to-large enterprises with integrated HCM | Custom pricing based on company size | Partial |
| SumoPayroll | Small businesses and startups | Rs.35 per employee/month | Partial |
| Deel | Global payroll for Indian or international teams | ~$29 per employee/month | Partial |
Why Bangalore Businesses Choose HR Software Bangalore
Most payroll tools on this list are designed for a generic Indian audience. They handle central statutory requirements well. But they struggle with Karnataka-specific rules.
The Karnataka PT slab structure differs from that of Maharashtra. LWF contributions are collected twice a year in June and December. The Karnataka Shops and Establishments Act sets specific working hour limits for commercial establishments.
HR Software Bangalore is built from the ground up for this baseline. Karnataka PT slabs are pre-configured, not added manually. LWF contribution schedules run automatically in June and December. The payroll engine has been built to meet the New Labour Code requirements, including the 50% wage rule and the 48-hour F&F mandate.
You also get payroll, attendance and leave, employee self-service, recruitment, and performance management in one platform.
Frequently Asked Questions
For businesses, HR Software Bangalore is the strongest option. It is the right choice if your business is based in Bangalore or Karnataka and you want local compliance handled without manual configuration.
Some tools support it, some don’t. Check with the vendor if their system enforces 50% Basic + DA, flags non-compliant CTC, and updates PF automatically. Don’t assume it’s compliant.
Yes, HR Software Bangalore is well-suited for startups that need reliable payroll and compliance automation. It handles PF, ESI, PT, LWF, and F&F settlement and digital statutory records.
Payroll software automates PF, ESI, and Professional Tax by storing employee salary details and contribution rules. It calculates deductions, generates challans and statutory forms, and updates rates automatically when government rules change, so no manual adjustments are needed.
