HRMS for Up to 20 Employees in India (2026): What You Need and What It Costs
At 20 employees, PF becomes mandatory and spreadsheets start failing. What a small company actually needs from HRMS, what it costs, a worked example and a one-week setup plan.
At 20 employees, HR stops being something you can keep in your head. There are probably two or three managers, a couple of joiners and leavers each quarter, PF for everyone and perhaps ESI for some, and a payroll that takes longer every month. Most companies of this size don't have a dedicated HR person — HR is the founder, an office manager or the accountant.
This guide covers what a company with up to 20 employees actually needs from HR software, what it should cost, how to choose, and how to be up and running within a week.
Updated 30 September 2026.
The short answer
- A 20-person company needs five things: attendance, leave, payroll, PF/ESI/TDS, and employee self-service on a phone.
- It doesn't need performance management suites, recruitment systems or heavy configuration.
- Expect to pay roughly ₹0–₹2,000 a month for 20 employees, depending on the vendor and what's included.
- Choose a tool you can set up in days, with payroll and compliance included.
- Test it on one real month before committing.
Why 20 employees is the turning point
- PF registration is mandatory for establishments with 20 or more employees.
- ESI applies to establishments with 10 or more employees (20 in some states), for employees earning up to ₹21,000 a month.
- Managers now approve leave, so approvals need to be tracked.
- Payroll has enough variation — loss of pay, joiners, leavers, incentives — that spreadsheets start producing errors.
- Employees expect to see their payslips, leave balances and attendance without asking.
In other words, at around 20 people, statutory compliance and payroll accuracy both become real obligations.
What a 20-person company needs
| Need | Why it matters | What to look for |
|---|---|---|
| Attendance | Decides pay | Mobile or biometric check-in; late rules; regularisation |
| Leave | Balances and approvals | Policies per leave type; manager approvals; current balances |
| Payroll | Accuracy and time | Loss of pay and proration from attendance; payslips in one run |
| PF and ESI | Mandatory; deadlines on the 15th | Calculation in payroll; ECR and ESIC return files; reminders |
| TDS | Employees above the tax threshold | Old and new regime; declarations; Form 16 |
| Self-service | Fewer questions to HR | Employees see payslips, leave and attendance on a phone |
| Documents | Offer letters, assets | Offer letters; asset tracking |
What you don't need yet
- Performance management suites — a simple review conversation works at 20 people.
- Applicant tracking systems — unless you're hiring several people a month.
- Complex workflow builders — one approval layer is enough.
- Enterprise analytics — a few simple reports will do.
Paying for these at 20 employees usually means paying for unused features.
What HRMS costs for 20 employees
| Option | Typical monthly cost for 20 employees | Notes |
|---|---|---|
| Free plans | ₹0 | Check what's included; payroll and compliance are often limited |
| Low-cost tools | ₹500–₹1,500 | Varies by features |
| All-in-one per-employee tools | ₹1,000–₹2,000 | Payroll and compliance usually included |
| Broad suites | Often more, with plan minimums | May include features you won't use |
PeopleVio for 20 employees: ₹59 × 20 = ₹1,180 a month, or ₹49 × 20 = ₹980 a month billed yearly, with every module included. Prices exclude GST. See the pricing page.
For context: if payroll takes a founder two days a month, even ₹1,180 is a fraction of what that time is worth.
How to choose
- Write down your must-haves: PF, ESI, TDS, biometric machine, field staff, Professional Tax.
- Shortlist three tools: a free or low-cost option, a compliance-focused tool and a simple all-in-one.
- Check the total price for 20 employees and for 30 (you'll grow).
- Run one real month with your employees and attendance.
- Check the mobile experience — employees will mostly use phones.
- Check data export — you'll want your data if you switch.
A worked example
A 20-person digital marketing agency in Bengaluru:
- 16 in the office, 4 working from client sites two days a week.
- 3 managers approve leave.
- Everyone is in PF; 5 employees earn under ₹21,000 and are covered by ESI.
- 6 employees are above the new-regime tax threshold.
- Payroll takes the founder a day and a half each month.
What they need: geofenced check-in (office and client sites), leave with manager approvals, payroll with loss of pay, PF and ESI files, TDS, and payslips emailed automatically. Professional Tax applies in Karnataka, so they'll either add it as a deduction or pick a tool that calculates it.
Result after moving: payroll takes under an hour, payslips go out on the 1st, PF and ESI files are ready before the 15th, and employees stop asking for leave balances.
How to be running within a week
Day 1: Collect your employee list, salaries, bank details, PAN, UAN and ESIC IP numbers in Excel. Day 2: Import employees and statutory IDs in bulk. Set up leave types, holidays and office timings. Day 3: Add office locations for geofencing, or connect your biometric machine. Invite employees. Days 4–7: Employees check in and apply for leave. At month-end, run payroll alongside your spreadsheet and compare.
How PeopleVio fits a 20-person company
- Attendance — geofenced GPS check-in from a phone, or ZKTeco/eSSL biometric machines; late rules and regularisation.
- Leave and comp off with manager approvals and current balances.
- Payroll with loss of pay, proration and custom earnings; payslips emailed in one run.
- PF and ESI through the EPFO and ESIC modules, with ECR and ESIC return files and reminders before the 15th.
- TDS and Form 16.
- Expenses, assets and offer letters.
- Employee self-service in a responsive web app that works on phones.
- Setup usually the same day, with bulk import from Excel.
What it doesn't do: Professional Tax, performance reviews, recruitment, shift rostering or overtime rules, or a native mobile app.
Frequently asked questions
Does a company with 20 employees need HRMS software? Most do. At 20 employees, PF becomes mandatory, ESI usually applies, and payroll has enough variation that spreadsheets start causing errors.
What is the best HRMS for up to 20 employees? One that covers attendance, leave, payroll, PF, ESI and TDS, works on a phone, and can be set up in days. Compare a free option, a compliance-focused tool and a simple all-in-one on one real month.
How much does HRMS cost for 20 employees in India? From free up to about ₹2,000 a month for most SME tools. PeopleVio costs ₹1,180 a month, or ₹980 a month billed yearly, for 20 employees.
Is PF mandatory for 20 employees? Yes. PF registration is mandatory for establishments with 20 or more employees.
Can small companies use free HRMS software? Yes, but check what's included. Free plans often limit payroll, compliance or the number of employees.
The bottom line
At 20 employees, HR is no longer a side job you can do in a spreadsheet. Pick a tool that covers attendance, leave, payroll and compliance, costs roughly what an hour or two of your time is worth each month, and can be running within a week.
See PeopleVio's pricing or book a demo.
Related reading: HRMS software cost for 20 employees · Why founders move from Excel to HRMS · HRMS for 10 employees · HRMS for 30 employees
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