TL;DR: Best Free Payroll Software Alternatives in India (2026)
- INDPayroll is the best overall payroll software for Indian startups and SMEs, offering payroll automation, PF, ESI, TDS compliance, attendance management, and employee self-service.
- Kredily provides a genuine free-forever payroll plan for businesses that want a no-cost solution.
- Zoho Payroll is a great option for small businesses, with a free plan for up to 10 employees and strong compliance features.
- greytHR, Keka, Pocket HRMS, factoHR, and HRMantra are suitable for growing businesses that need advanced HR and payroll capabilities.
- When choosing payroll software, prioritize PF, ESI, TDS compliance, payroll automation, payslip generation, attendance integration, employee self-service, and reporting tools.
- The right payroll software can reduce manual errors, save time, improve compliance, and scale with your business growth.
Payroll in India is no longer a simple monthly task. Between PF, ESI, TDS, Professional Tax, and constantly changing labour codes, even a small mistake can lead to penalties. That is exactly why so many companies are searching for free payroll software India options in 2026—they want compliance and automation without a heavy price tag. India’s Ministry of Labour mandates PF, ESI, and Professional Tax compliance for businesses of all sizes.
For years, businesses managed salaries on spreadsheets. But manual payroll is slow, error-prone, and risky. As teams grow, formulas break, statutory rates change, and a single wrong cell can cost thousands. Consequently, business owners, HR managers, and finance teams are moving to dedicated tools.
In this guide, we compare the best payroll software alternatives in India for 2026. Whether you’re a startup or a growing SME looking for payroll software India options, this guide covers everything you need. Pricing and free-plan details below were verified against each vendor’s official pricing page in June 2026—so you can choose with confidence.
Free Payroll, PF, ESI & TDS Software
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Why Businesses Need Payroll Software In 2026
Modern payroll involves far more than paying salaries. A good system handles the full statutory cycle, including:
- Salary processing with accurate earnings and deductions
- PF (Provident Fund) contributions and ECR filing
- ESI calculations for eligible employees
- TDS deduction under the correct income tax slabs
- Professional Tax is based on each state’s rules
- Payslips are generated automatically every cycle
- Attendance integration linking worked days to pay
- Compliance reporting for audits and returns
Manual payroll struggles with all of this. Rates change mid-year, multiple states have different rules, and one missed deadline triggers interest or penalties. Moreover, spreadsheets offer no audit trail, no employee access, and no real security. Payroll software removes these risks by automating calculations and keeping you compliant by default.
What To Look for in the Best Free Payroll Software
Not every free tool is built for Indian compliance. Before you commit, check for these essentials:
- Payroll automation – automatic salary, tax, and deduction calculations
- Compliance management – built-in PF, ESI, TDS, and PT support
- PF & ESI support – correct contribution rates and return-ready reports
- Payslip generation – branded, downloadable payslips
- Employee self-service – a portal for payslips, tax declarations, and leave
- Reporting & analytics – payroll registers and statutory summaries
- Attendance integration – sync with biometric or attendance apps
- Scalability – room to grow from 10 to 1,000 employees
A quick note on the word “free”: some tools offer a genuine free-forever plan, while others provide only a time-limited trial or a demo. We flag the difference for each option below. Learn how to run payroll in India without any cost.
Best Payroll Software Alternatives In India For 2026
1. INDPayroll
INDPayroll is a payroll software built specifically for Indian businesses, and it leads our list for 2026. It combines payroll automation, statutory compliance, and employee management in one affordable platform—with a free plan to get started.
Key strengths include:
- Free plan availability for small teams
- End-to-end payroll automation and salary processing
- PF management with accurate contributions and ECR-ready files
- ESI management for eligible employees
- TDS support is aligned to the current income tax slabs
- A centralised employee database
- Attendance integration and leave management
- Compliance reports for PF, ESI, TDS, and PT
- Automatic payslip generation
- Employee self-service portal
- A growing ecosystem of free payroll tools
Pros: Built for India, compliance-first, easy to use, affordable, quick to implement.
Cons: Primarily focused on Indian statutory needs, so global multi-country payroll is not the goal.
Best For: Startups, SMEs, and growing businesses that want compliant, automated payroll without high costs.
2. Kredily
Kredily is a popular HR and payroll platform with a genuine “Free Forever” plan, used by 25,000+ Indian companies.
Pros: Truly free plan (no time limit) covering unlimited employees, with PF, ESI, PT, and TDS statutory calculations, attendance, leave, and an employee self-service portal.
Cons: PF/ESI challan generation, Form 16, NEFT salary payouts, and analytics sit on paid plans; free storage is capped at 250 MB.
Best For: Startups and small teams wanting a real no-cost HR and payroll starting point.
3. Zoho Payroll
Zoho Payroll offers a free-forever plan and handles Indian statutory payroll well.
Pros: Free plan for up to 10 employees with automatic payroll, payslips, Income Tax, EPF, ESI, PT, a TDS worksheet, an ESS portal, and 40+ reports; integrates with Zoho Books and People.
Cons: The free plan is capped at 10 employees; leave and attendance management require the paid Premium plan (from ₹1,000/organisation/month, billed annually).
Best For: Small teams and businesses already using the Zoho ecosystem.
Free Payroll, PF,
ESI & TDS Software
Professional compliance management for Indian businesses. 100% Free Forever.
4. greytHR
greytHR is an established HR and payroll provider trusted by 30,000+ companies.
Pros: Robust compliance, a mature payroll engine, and a strong employee portal.
Cons: No free plan—only a 7-day free trial; paid plans start at ₹2,495/month (Essential, up to 50 employees).
Best For: Mid-sized companies needing proven compliance depth.
5. Keka
Keka offers modern HR, payroll, and performance management.
Pros: Polished interface, strong analytics, solid payroll and attendance, and statutory PF/ESI/LWF/TDS reports.
Cons: No free plan (free trial only); a nominal setup/implementation fee applies and pricing scales with headcount.
Best For: Growing companies wanting an all-in-one HRMS.
6. factoHR
factoHR provides payroll and HR with a focus on automation and mobile access, trusted by 4,000+ businesses.
Pros: Has a ₹0/forever plan (up to 20 employees) and good automation on its paid tiers.
Cons: The free plan is HRIS-only—employee data, letter generation, and basic payslips—with no payroll processing, statutory compliance, or attendance; full payroll starts on the Core plan (from ₹4,999/month).
Best For: Very small teams that want to start with employee data, then scale into full payroll.
7. Pocket HRMS
Pocket HRMS is a cloud HR and payroll solution aimed at Indian businesses.
Pros: Cloud-based, AI features, and payroll plus HR with statutory compliance (PF, ESIC, PT, TDS).
Cons: No free plan (free demo only); a 50-employee minimum applies and pricing starts at ₹2,995/month plus a one-time implementation fee.
Best For: Established SMEs (50+ employees) wanting cloud HR with payroll.
8. HRMantra
HRMantra is a feature-rich, highly configurable HR and payroll suite with 26+ years in the market.
Pros: Extensive modules, deep customisation, and strong workflows.
Cons: No free plan; it is demo- and quote-based, enterprise-focused (built for organisations of roughly 200+ employees), and complex for small teams.
Best For: Larger enterprises with complex HR needs.
Comparison Table of the Best Payroll Software Alternatives
Not sure which tool fits your needs? Use this comparison alongside our guide on how to choose payroll software in India.
| Software | Free Plan | Payroll Processing | PF | ESI | TDS | Attendance | Leave Mgmt | Employee Portal | Reporting | Best For |
| INDPayroll | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Startups & SMEs |
| Kredily | Yes (unlimited emp) | Yes | Yes | Yes | Yes (calc) | Yes | Yes | Yes | Paid | Startups & small teams |
| Zoho Payroll | Yes (≤10 emp) | Yes | Yes | Yes | Yes | Paid | Paid | Yes | Yes | Zoho users |
| greytHR | No (7-day trial) | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Mid-sized firms |
| Keka | No (trial only) | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Growing companies |
| factoHR | Free tier (HRIS only) | Paid | Paid | Paid | Paid | Paid | Paid | Paid | Paid | Very small teams |
| Pocket HRMS | No (demo only) | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | SMEs (50+) |
| HRMantra | No (demo/quote) | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Yes | Enterprises |
Why INDPayroll Stands Out
Among all the free payroll software India options, INDPayroll is purpose-built for the local market. It stands out because it is:
- Built for India – PF, ESI, TDS, and PT handled natively
- Compliance-first – statutory rules baked into every calculation
- Automated – payroll runs in minutes, not days
- User-friendly – an interface that non-experts can navigate
- Cost-effective – a free plan plus affordable upgrades
- Tool-rich – a growing ecosystem of free payroll tools
- Growth-ready – scales as your headcount rises
- Fast to deploy – quick implementation with minimal setup
Common Mistakes When Choosing Payroll Software
- Many businesses regret their first choice. Avoid these frequent errors:
- Choosing on price alone – the cheapest tool can cost more in penalties
- Ignoring compliance – a system that misses PF, ESI, or TDS is a liability
- Lacking automation – manual steps reintroduce errors
- Poor support – payroll issues need fast, reliable help
- No scalability – you outgrow the tool within a year
- Hidden costs – a “free” plan that excludes payroll or charges setup fees adds up quickly
Free Payroll, PF, ESI & TDS Software
Conclusion
Every tool on this list has merits. greytHR and Keka suit larger, well-resourced teams (though both are trial-only, not free); Zoho Payroll offers a solid free plan for up to 10 employees; Kredily provides a genuine free-forever plan for unlimited staff; and factoHR’s free tier covers employee data but not payroll. For businesses that need a free, compliance-focused payroll solution with full PF, ESI, and TDS processing from day one, INDPayroll is the strongest overall choice. It combines payroll processing, statutory compliance, employee management, and automation in a single, easy-to-use platform—without the high cost. For Indian startups and SMEs in 2026, that balance is hard to beat.
Choosing payroll software in 2026 comes down to compliance, automation, and value. While many tools cover the basics, few balance all three as well as INDPayroll. If you want compliant, automated payroll without the high cost, start with INDPayroll’s free plan today—run your first payroll in minutes and explore the free payroll tools built for Indian businesses
