Free Payroll Software in India (2026): What Free Plans Really Include
Free plans, trials, Excel templates and open source — what free payroll software in India really includes, what it leaves out, the hidden costs and when a low-cost paid tool wins.
"Free payroll software" is one of the most searched payroll terms in India — and for good reason. Small businesses don't want to pay for software until they're sure they need it. But "free" means very different things from one product to the next: a free plan with a small employee limit, a free trial that ends after 14 or 30 days, an Excel template, open-source software you host yourself, or a "free" tool whose statutory features cost extra.
This guide explains the kinds of free payroll software available in India, what free plans usually include and exclude, the hidden costs, when free is enough, and when paying a small amount per employee is the better deal.
Updated 30 September 2026. Free plans change often — check each vendor's current terms.
The short answer
- Free payroll options in India include free plans for small teams, free trials, Excel templates and open-source software.
- Free plans usually limit the number of employees, statutory features (PF, ESI, TDS returns), support or integrations.
- Free is often enough for a very small team (under about 10 employees) with no PF and simple salaries.
- Paid is usually better once PF and ESI apply, you have attendance-based pay, or payroll mistakes start costing time and money.
- Compare the real cost — your time, errors and late-payment interest — not just the subscription.
The five kinds of "free" payroll software
| Type | What you get | Watch out for |
|---|---|---|
| Free plan (freemium) | A vendor's product for free, up to a limit | Employee caps, missing statutory features, upgrade pressure |
| Free trial | The full product for 14–30 days | Payroll needs a full month to test properly |
| Excel payroll template | A spreadsheet with formulas | You do all the data entry; no compliance files |
| Open-source HR/payroll | Software you install and host | Hosting, maintenance, Indian compliance customisation |
| Accounting software payroll add-on | Payroll inside your accounting tool | Often basic; may be paid separately |
What free plans usually include
- Employee records
- Basic salary structures
- Monthly payroll calculation
- Payslips
- Sometimes leave and attendance
What free plans often exclude or limit
- Employee count — free up to a small number of employees.
- PF and ESI calculation and return files
- TDS calculation, declarations and Form 16
- Biometric integration
- Mobile attendance with geofencing
- Support — email only, or none
- Data export or history beyond a period
- Multiple admins or approval workflows
Always check exactly which statutory features are included. For most Indian employers, PF, ESI and TDS are the reason to use payroll software in the first place.
The hidden costs of free
| Hidden cost | Example |
|---|---|
| Your time | 1–2 days a month on manual steps a paid tool automates |
| Errors | Payslip corrections, off-cycle payments |
| Late PF/ESI | Interest and damages if files are prepared manually and late |
| Switching later | Migrating data when you outgrow the free plan |
| Add-ons | Paying separately for the features you actually need |
A free tool that costs you a day of work each month is not free.
When free payroll software is enough
- Fewer than about 10 employees
- No PF (under 20 employees and not voluntarily registered)
- No ESI, or only a few ESI employees
- Fixed salaries with little loss of pay
- A CA handles compliance filings
When paid is the better deal
- You have 20 or more employees and PF applies
- ESI applies to a good share of your staff
- Salaries depend on attendance (loss of pay, half days, late marks)
- You have joiners and leavers most months
- You need TDS with declarations and Form 16
- You use a biometric machine or have field staff
A worked comparison: a 30-person company
A 30-person company is choosing between a free plan (if one covers 30 employees) and a paid all-in-one tool.
| Free plan | Paid (PeopleVio, yearly billing) | |
|---|---|---|
| Subscription | ₹0 | ₹41 × 30 = ₹1,230 a month |
| PF and ESI files | Prepared manually or by the CA | Generated automatically |
| Attendance | Separate or manual | Biometric and geofenced, linked to payroll |
| Payroll time | ~12 hours a month | ~2 hours a month |
| Cost of 10 extra hours at ₹400/hour | ₹4,000 | — |
| Effective monthly cost | ~₹4,000 + CA time | ₹1,230 |
For this company, the paid tool costs less in practice.
How to choose
- List what you need every month: PF, ESI, TDS, attendance method, payslips.
- Check each free plan's limits against that list.
- Calculate your time cost for anything the free plan doesn't do.
- Compare with a paid tool's price at your headcount.
- Test with one real month of your data, whichever you choose.
- Check data export, so you can move later.
About PeopleVio's pricing
PeopleVio doesn't have a free plan. It has one low, published price per active employee with every module included — payroll, PF and ESI (EPFO and ESIC modules), TDS and Form 16, geofenced and biometric attendance, leave, expenses, assets and offer letters.
| Active employees | Monthly billing | Yearly billing (per month) |
|---|---|---|
| 10 | ₹590 | ₹490 |
| 20 | ₹1,180 | ₹980 |
| 30 | ₹1,470 | ₹1,230 |
| 50 | ₹2,450 | ₹2,050 |
| 100 | ₹4,900 | ₹4,100 |
Prices exclude GST. No implementation fee; only active employees are billed. Instead of a self-serve free trial, you book a demo and get a workspace for your company, usually the same day, to test with your own data.
What PeopleVio doesn't include: Professional Tax calculation, performance reviews, recruitment, shift rostering or overtime rules, and a native mobile app.
Frequently asked questions
Is there free payroll software in India? Yes — free plans for small teams, free trials, Excel templates and open-source options. Check each for employee limits and statutory features.
Does free payroll software handle PF and ESI? Some free plans do in a limited way; many don't generate return files. Check before you rely on it.
What is the best free payroll software for small business in India? The one whose free plan covers your headcount and your statutory needs. For teams that need PF, ESI and attendance-based pay, a low-cost paid tool is often better value.
Is Excel good enough for payroll? For a handful of employees with fixed salaries, yes. As soon as loss of pay, PF, ESI and payslips are involved, errors and time grow quickly.
Does PeopleVio have a free plan? No. PeopleVio charges from ₹59 per active employee per month (₹49 billed yearly), with every module included, and sets up a demo workspace so you can test before paying.
The bottom line
Free payroll software can be a good start for a very small team. But once PF, ESI and attendance-based pay are involved, the real cost of "free" is your time and your errors. Compare the effective cost, not the sticker price.
See PeopleVio's pricing or book a demo.
Related reading: Free vs paid HRMS software · Cheapest HRMS software in India · Payroll software price in India · HRMS total cost of ownership
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