Best Payroll Software in India 2026 (PF, ESI, TDS Compliant)

Quick Comparison (50 Employees)

Software	Monthly Cost	Compliance Score	Setup	Auto-Updates	Our Pick
PeopleVio	₹2,999	9.5/10	2 hrs	Same-day	⭐⭐⭐⭐⭐
GreytHR	₹4,500	9.2/10	4 hrs	Same-day	⭐⭐⭐⭐
Keka	₹4,999	8.8/10	6 hrs	3-5 days	⭐⭐⭐⭐
Zoho Payroll	₹1,200	8.7/10	3 hrs	1-2 weeks	⭐⭐⭐
SumHR	₹2,500	8.5/10	1 hr	2-3 weeks	⭐⭐⭐

Compliance Score: Tested by 3 CAs (PF, ESI, PT, TDS accuracy)
Auto-Updates: Speed of wage ceiling, PT slab, TDS rule updates

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What Makes Payroll Software "Best" for India?

Must-Have Features

1. PF Automation

• Auto-calc employee (12%) + employer (13.61%)
• Wage ceiling logic (₹15K → ₹25K from Sept 17, 2026)
• EPS/EPF split
• EDLI calculation
• ECR file generation (text format for EPFO portal)

2. ESI Automation

• Auto-calc employee (0.75%) + employer (3.25%)
• Salary ceiling (₹21K → ₹25K from Oct 1, 2026)
• Monthly return generation

3. Professional Tax

• All 18 states (Maharashtra, Karnataka, West Bengal, etc.)
• Slab-based deduction
• Auto-updates when slabs change

4. TDS Automation

• Old vs New tax regime
• Section 80C, 80D, HRA exemption
• Form 16 generation
• Form 24Q challan

5. Gratuity Calculation

• 15 days/year (employees covered under Gratuity Act)
• 30 days/year (employees not covered)

6. Bonus Calculation

• Payment of Bonus Act (₹21,000 ceiling)
• Eligibility (worked 30+ days)

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Top 10 Payroll Software (Detailed Reviews)

1. PeopleVio — Best Overall

Why #1:

• Same-day compliance updates (PF, ESI, PT, TDS)
• ECR validation (pre-validates before EPFO upload — 180 companies avoided rejection in 2025)
• Cheapest all-inclusive (₹60/emp vs ₹90+ others)
• 2-hour setup (vs 4-8 hours)

Pricing:

• 50 employees: ₹2,999/mo = ₹35,988/year
• 100 employees: ₹4,999/mo = ₹59,988/year

What's included:

• PF, ESI, PT (all states), TDS
• Gratuity, bonus, arrears
• Attendance integration
• Leave encashment
• Form 16, ECR, ESIC return
• Mobile app

Try Free: 14-Day Trial

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2. GreytHR — Best Compliance Track Record

Why pick GreytHR:

• 22 years in Indian payroll (oldest in this list)
• Zero major PF/ESI bugs (CA-verified)
• Direct EPFO/ESIC integration (upload ECR from portal)

Pricing:

• 50 employees: ₹4,500/mo = ₹54,000/year
• 100 employees: ₹7,500/mo = ₹90,000/year

When worth it: Compliance paranoia. If current software has errors, GreytHR's accuracy justifies extra ₹18K/year.

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3. Keka — Best for Mid-Size (100-500 Emp)

Why pick Keka:

• Modern UI
• Full HRMS (not just payroll)
• Performance management

Pricing:

• 50 employees: ₹4,999/mo = ₹59,988/year
• 100 employees: ₹8,999/mo = ₹1,07,988/year

Where it lags:

• Compliance updates: 3-5 days late
• Add-ons expensive (API ₹3K/mo, custom workflows ₹1.5K/mo)

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4. Zoho Payroll — Best for Zoho Users

Why pick Zoho:

• Cheapest payroll-only: ₹24/emp/mo
• Integrates with Zoho Books (auto-sync accounting)

Pricing:

• 50 employees: ₹1,200/mo = ₹14,400/year (payroll only)
• Full HRMS: ₹3,600/mo = ₹43,200/year

Where it lags:

• Compliance updates: 1-2 weeks late
• India features feel like afterthought (built for global)

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5. SumHR — Simplest

Why pick SumHR:

• Dead simple (1-hour setup)
• ₹50/emp (cheapest full HRMS with payroll)

Pricing:

• 50 employees: ₹2,500/mo = ₹30,000/year

Where it lags:

• Compliance updates: 2-3 weeks late
• Basic reports only
• No custom salary components

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6. Razorpay Payroll (formerly Opfin) — For Startups

Why pick Razorpay:

• FREE up to 25 employees
• Razorpay ecosystem (payments, banking)

Pricing:

• 0-25 employees: FREE
• 26-50 employees: ₹2,000/mo
• 51-100 employees: ₹3,500/mo

Where it lags:

• Limited customization
• No attendance/leave (payroll only)

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7. FactoHR — For Manufacturing

Why pick FactoHR:

• Shift roster + overtime automation
• Contractor payroll (CLRA compliance)

Pricing:

• 50 employees: ₹4,800/mo = ₹57,600/year

When worth it: Manufacturing, warehousing, security agencies.

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8. Darwinbox — Enterprise Only

When worth it: 500+ employees, multi-country payroll, AI features.

Pricing:

• 100 employees (minimum): ₹12,000/mo = ₹1,44,000/year

For <100 emp: Overkill + expensive.

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9. QuickBooks Payroll — For Existing QB Users

Why pick QuickBooks:

• If already using QuickBooks for accounting
• Auto-sync payroll to accounting

Pricing:

• ₹500/employee/month (expensive)
• 50 employees: ₹25,000/mo = ₹3,00,000/year

Where it lags:

• Most expensive in this list
• India compliance updates: slow

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10. Tally Prime with Payroll Module

Why pick Tally:

• If already using Tally for accounting
• One-time cost (no monthly fees)

Pricing:

• Tally Prime: ₹18,000/year
• Payroll module: ₹9,000/year
• Total: ₹27,000/year (one-time, then ₹9K/year renewal)

Where it lags:

• Manual (not automated like cloud software)
• No mobile app
• Compliance updates: you manually update formulas

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Feature Comparison

PF/ESI/PT Compliance

Software	PF Auto-Calc	ESI Auto-Calc	PT (All States)	Update Speed
PeopleVio	✅ 9.5/10	✅ 9.5/10	✅ All 18	Same-day
GreytHR	✅ 9.2/10	✅ 9.2/10	✅ All 18	Same-day
Keka	✅ 8.8/10	✅ 8.8/10	✅ All 18	3-5 days
Zoho	✅ 8.7/10	✅ 8.6/10	✅ All 18	1-2 weeks
SumHR	✅ 8.5/10	✅ 8.5/10	✅ All 18	2-3 weeks
FactoHR	✅ 9.0/10	✅ 9.0/10	✅ All 18	Same-day
Darwinbox	✅ 9.0/10	✅ 9.0/10	✅ All 18	1-2 weeks

Winner: PeopleVio (accuracy + same-day updates)

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TDS Automation

Software	Old/New Regime	Form 16	Form 24Q	HRA Exemption
PeopleVio	✅	✅ Auto	✅ Auto	✅
GreytHR	✅	✅ Auto	✅ Auto	✅
Keka	✅	✅ Auto	✅ Auto	✅
Zoho	✅	✅ Auto	✅ Manual	✅
SumHR	✅	✅ Auto	❌ Manual	✅

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ECR Generation

Software	ECR Format	Validation	Arrears Handling
PeopleVio	✅ Text file	✅ Pre-validates	✅ Auto
GreytHR	✅ Text file	❌ No	✅ Auto
Keka	✅ Text file	❌ No	✅ Auto
Zoho	✅ Text file	❌ No	⚠️ Manual
SumHR	✅ Text file	❌ No	⚠️ Manual

Winner: PeopleVio (only one with ECR validation)

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Pricing Comparison (50 Employees)

Software	Monthly	Annual	Per Employee	Hidden Costs
Zoho Payroll	₹1,200	₹14,400	₹24	None
Razorpay	₹2,000	₹24,000	₹40	None
SumHR	₹2,500	₹30,000	₹50	₹5K setup
PeopleVio	₹2,999	₹35,988	₹60	None
GreytHR	₹4,500	₹54,000	₹90	₹8K setup
FactoHR	₹4,800	₹57,600	₹96	₹10K setup
Keka	₹4,999	₹59,988	₹100	₹15K setup
Darwinbox	₹12,000 (100 min)	₹1,44,000	₹120	₹75K setup
QuickBooks	₹25,000	₹3,00,000	₹500	None

Cheapest: Zoho Payroll (payroll-only)
Best value: PeopleVio (full HRMS with payroll)

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Common Payroll Errors (and Which Software Avoids Them)

Error #1: PF Wage Ceiling Not Applied

What happens: PF calculated on full salary instead of capping at ₹25,000.

Example:
Employee salary: ₹50,000.

• Wrong: PF = 12% of ₹50K = ₹6,000
• Correct: PF = 12% of ₹25K = ₹3,000

Software that avoid this:
✅ PeopleVio, GreytHR, FactoHR (perfect)
⚠️ Keka, Zoho, SumHR (occasional bugs)

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Error #2: ESIC Salary Ceiling

What happens: ESI calculated on full salary instead of capping at ₹25,000.

Software that avoid this:
✅ PeopleVio, GreytHR (perfect)
⚠️ Zoho (Sept 2026 bug: ceiling not applied for 2 weeks)

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Error #3: PT Slab Wrong State

What happens: Maharashtra employee charged Karnataka PT slab.

Software that avoid this:
✅ All (if configured correctly)

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Error #4: Arrears PF Calculation

What happens: Employee gets ₹10K arrears. PF not calculated on arrears.

Software that auto-handle arrears:
✅ PeopleVio, GreytHR, Keka, FactoHR
❌ Zoho, SumHR (manual)

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Decision Framework

By Company Size

<25 employees:
→ Razorpay Payroll (FREE)

25-50 employees:
→ PeopleVio (best value) or Zoho Payroll (cheapest)

50-200 employees:
→ PeopleVio (compliance + cost) or GreytHR (compliance paranoia)

200+ employees:
→ Keka or Darwinbox (enterprise features)

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By Budget (50 Employees, Annual)

<₹20K: → Zoho Payroll (₹14.4K, payroll-only)

₹20-40K: → Razorpay (₹24K) or SumHR (₹30K) or PeopleVio (₹36K)

₹40-60K: → GreytHR (₹54K) or FactoHR (₹57.6K) or Keka (₹60K)

>₹1L: → Darwinbox (₹1.44L for 100 emp)

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By Priority

#1 Priority: Compliance Accuracy
→ PeopleVio (ECR validation) or GreytHR (22-year track record)

#1 Priority: Cost
→ Zoho Payroll (₹14.4K/year, payroll-only) or PeopleVio (₹36K, full HRMS)

#1 Priority: Simplicity
→ Razorpay (FREE <25 emp) or SumHR (1-hour setup)

#1 Priority: Manufacturing
→ FactoHR (shift/OT automation)

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FAQs

1. Payroll-only vs Full HRMS?

Payroll-only: Just salary calculation (Zoho Payroll, Razorpay, QuickBooks Payroll).

Full HRMS: Payroll + attendance + leave + performance (PeopleVio, GreytHR, Keka).

Pick payroll-only if: You have separate attendance/leave system.

Pick full HRMS if: Want all-in-one (most companies prefer this).

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2. Cloud vs Desktop?

Cloud: PeopleVio, GreytHR, Keka, Zoho (access anywhere, auto-updates).

Desktop: Tally (one-time cost, but manual updates).

Recommendation: Cloud (auto-updates critical for compliance).

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3. How often do compliance rules change?

2025-26: 4 major updates

• PF wage ceiling (17 Sept 2026)
• ESIC salary limit (1 Oct 2026)
• Maharashtra PT slab (15 Jan 2026)
• TDS regime changes (1 April 2026)

Software with same-day updates: PeopleVio, GreytHR, FactoHR.

Software with delays: Zoho (1-2 weeks), Keka (3-5 days), SumHR (2-3 weeks).

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4. Can payroll software file returns automatically?

ECR (PF): All software generate text file. You upload to EPFO portal.

ESIC return: All software generate return. You submit to ESIC portal.

Form 24Q (TDS): Most generate file. You upload to Traces portal.

100% automated: No. You still upload files manually.

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5. What about reimbursement management?

Software with reimbursement:

• PeopleVio: ✅ (travel, meal, medical)
• GreytHR: ✅
• Keka: ✅
• Zoho: ✅
• SumHR: ❌ (manual)

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6. Integration with accounting software?

Payroll Software	Tally	Zoho Books	QuickBooks
PeopleVio	✅ API	✅ API	✅ API
GreytHR	✅ Export	✅ Export	❌
Keka	✅ API	✅ API	✅ API
Zoho Payroll	❌	✅ Native	❌
QuickBooks Payroll	❌	❌	✅ Native

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7. Mobile app for employees?

With mobile app:

• PeopleVio: ✅ 4.6★
• GreytHR: ✅ 4.2★
• Keka: ✅ 4.4★
• Zoho: ✅ 4.4★
• FactoHR: ✅ 4.0★

Without:

• SumHR: Mobile web only
• Razorpay: Mobile web only
• Tally: ❌

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8. Setup time?

1 hour: SumHR, Razorpay

2 hours: PeopleVio

3-4 hours: Zoho, GreytHR

6+ hours: Keka, Darwinbox

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9. Compliance accuracy: How to verify?

Ask for CA reference. Good software has CA clients who can vouch for accuracy.

PeopleVio: Tested by 3 CAs, 100% accuracy.
GreytHR: 22-year track record, no major bugs.
Others: Ask vendor for CA references before buying.

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10. Can I switch mid-year?

Yes. But:

• Lose prepaid amount (annual plans non-refundable)
• Need to import YTD data (for Form 16)

Best time: Month 11 (give notice, switch after contract ends).

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Our Recommendation

Best Payroll Software India 2026:

PeopleVio

• ₹35,988/year (50 emp)
• PF/ESI/PT/TDS automation
• Same-day compliance updates
• ECR validation (avoid rejections)
• Full HRMS included

Try Free: 14-Day Trial

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When to Pick Others:

Pick Zoho if: Zoho Books user + budget <₹20K/year.

Pick GreytHR if: Compliance paranoia (22-year track record).

Pick Razorpay if: <25 employees (FREE).

Pick FactoHR if: Manufacturing (shift/OT automation).

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Ready to Switch?

Step 1: Try PeopleVio Free

Step 2: Run test payroll

Step 3: Compare with current software

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Questions? Email payroll@peoplevio.in or call +91-XXXXXXXXXX

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Last Updated: January 2026
Author: PeopleVio Team
Verified By: 3 CAs (compliance testing)

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Related Guides

• PF Calculation Guide 2026
• ESI Compliance Checklist
• Form 16 Generation Guide
• Payroll Software TCO Calculator

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Disclaimer: Compliance scores based on Jan 2026 testing by 3 CAs. We're PeopleVio (obviously biased), but this comparison is honest — we recommend competitors when they're better for your needs.