Best Payroll Software for 10–50 Employee Companies in India (2026)

Running payroll for a small Indian team manually is painful and error-prone. Here's what payroll software actually does, what Indian compliance it handles, and which tool fits a 10–50 person company.

Running payroll for a 10–50 person Indian company is harder than it looks. You're not big enough for a full payroll department, but you're too big to do it manually without making mistakes. Every month, someone's PF gets calculated wrong, or TDS is off, or a new joiner's salary was prorated incorrectly.

The CA handles it — but takes 3 days to reply, and charges per hour for what should be an automated process.

Payroll software for small Indian teams exists to solve exactly this problem. This guide explains what it does, what Indian compliance it must cover, and which tools make sense for a 10–50 employee company.

What Indian Payroll Software Must Handle

If you're running payroll in India, your software must correctly calculate:

1. Provident Fund (EPF)

Employee contribution: 12% of Basic salary
Employer contribution: 12% of Basic (split: 8.33% to EPS, 3.67% to EPF)
PF wage ceiling: ₹15,000/month (contributions capped if Basic > ₹15,000 unless the employee opts out)
Mandatory for companies with 20+ employees; optional below that

2. Professional Tax (PT)

Levied by state governments — not all states have it
Slabs vary by state: Maharashtra, Karnataka, West Bengal, Andhra Pradesh, Telangana, Tamil Nadu, Gujarat, Madhya Pradesh, Orissa, and Meghalaya all have different rules
Maharashtra example: ₹200/month for salary above ₹10,000; ₹300 in February
Must be deducted monthly and remitted to the state

3. TDS (Tax Deducted at Source)

Under the new tax regime (FY 2025–26 default): 0% up to ₹4L, then progressive slabs up to 30%
Rebate u/s 87A: No tax payable if total income ≤ ₹7L (new regime)
Must annualise projected salary to calculate monthly TDS
Investment declarations (80C, HRA, etc.) affect TDS under the old regime

4. ESI (Employee State Insurance)

Applicable if gross salary ≤ ₹21,000/month
Employee contribution: 0.75% of gross; Employer: 3.25% of gross
Mandatory for companies with 10+ employees (in applicable states/industries)

5. Gross to Net Calculation

Gross = Basic + HRA + Special Allowance + other allowances
Net = Gross − Employee PF − PT − TDS − ESI (if applicable) − LOP deduction + Bonus

Getting all of this right manually, every month, for 30+ employees is where errors creep in.

What Good Payroll Software Does

Beyond calculations, a good payroll tool for an Indian SMB should:

CTC to component breakdown: Enter an annual CTC and have the system calculate Basic, HRA, Special Allowance, and all deductions automatically
One-click payroll runs: Process the entire month's payroll in minutes, not hours
LOP integration: Automatically apply Loss of Pay deductions based on approved unpaid leaves
Payslip generation: Produce printable/downloadable payslips per employee
Employee self-service: Employees view their own payslips without asking HR
Adjustment support: Add bonuses, override LOP days, handle full-and-final settlement
Audit trail: Track who processed what and when

Best Payroll Software for 10–50 Employee Indian Companies

1. JambaHR — Best for startups that want payroll + everything else

JambaHR's Business tier (₹800/employee/month) includes a full payroll module built specifically for Indian compliance — PF, state-wise PT (10 states), TDS under the new regime with Rebate u/s 87A, and ESI awareness.

How it works:

Set up a salary structure per employee — enter CTC, choose state, metro/non-metro
JambaHR auto-calculates Basic, HRA, Special Allowance, employee/employer PF, PT, TDS, and net pay
Each month, create a payroll run — the system pre-fills all values
Adjust individual entries for bonuses, LOP, or one-time changes
Mark the run as processed → payslips are available for all employees
Employees view their payslips in their self-service portal

Key differentiator: Payroll in JambaHR is part of a complete HR platform — leave management, performance reviews, documents, and hiring are all in the same tool. LOP from approved unpaid leaves flows automatically into payroll.

Pricing: ₹800/employee/month (Business tier)

Best for: Startups and SMBs that want payroll integrated with their broader HR stack.

2. greytHR — Best standalone payroll tool

greytHR is one of India's most widely used payroll platforms. It handles Indian statutory compliance well and has a large user base among CAs and payroll teams.

Strengths:

Mature payroll engine with deep Indian compliance
Widely used — many CAs are familiar with it
Payroll approval workflows
Form 16, Form 24Q generation

Limitations:

UI is not modern — feels dated compared to newer tools
HR features (reviews, documents, hiring) are limited or absent
Free tier exists but is basic; meaningful features require paid plans starting at ₹3,495/month

Best for: Teams where payroll is the primary need and a CA or payroll specialist handles it.

3. Keka HR — Best for 100+ employee companies

Keka has excellent payroll functionality but is priced and designed for larger companies (100+ employees). At ₹6,999/month minimum, it's expensive for a 20-person team.

Best for: Growing companies above 100 employees who need payroll + full HR suite.

4. Razorpay Payroll (formerly Opfin) — Best for tech startups

Razorpay Payroll is a clean, modern payroll tool popular with Indian tech startups. It handles PF, PT, TDS, and direct salary disbursement via Razorpay.

Strengths:

Clean modern UI
Direct salary disbursement integrated
Good compliance handling

Limitations:

Primarily payroll-focused — limited HR features
No ATS, reviews, or document management
Pricing varies; can be expensive at higher employee counts

Best for: Tech startups that want clean payroll with direct disbursement and already use Razorpay.

5. Excel / Google Sheets — The unofficial option

Many 10–50 person companies still run payroll manually. This works until:

A formula breaks and nobody notices until salaries are already disbursed
The PT slab changes and nobody updates the sheet
A new employee's salary is prorated wrong for a mid-month joining
You need to generate 30 individual payslips

The hidden cost: a competent admin spending 8–15 hours per month on payroll. At ₹300–500/hour, that's ₹2,400–7,500/month in labour — often more than payroll software costs.

Comparison Table

Tool	Pricing	Indian Payroll	PF/PT/TDS	Payslips	HR Features
JambaHR Business	₹800/emp/month	✅ Native	✅ All three	✅	✅ Full HR
greytHR Paid	From ₹3,495/month	✅ Mature	✅ All three	✅	⚠️ Limited
Keka	From ₹6,999/month	✅ Advanced	✅ All three	✅	✅ Full HR
Razorpay Payroll	Custom	✅	✅	✅	❌ Minimal
Excel/Sheets	Free	Manual	Manual	Manual	❌

Sample Payroll Calculation: 30-Person Startup in Mumbai

Let's say you have a 30-person team in Mumbai with average CTC of ₹12 LPA (₹1,00,000/month gross).

Per employee monthly calculation (approximate):

Basic: ₹40,000 (40% of gross)
HRA: ₹20,000 (50% of Basic — metro)
Special Allowance: ₹40,000
Employee PF: ₹1,800 (12% of Basic, capped at ₹15,000 Basic)
Employer PF: ₹1,800 (12% of Basic)
Professional Tax (Maharashtra): ₹200/month (₹300 in February)
TDS: ~₹2,500–5,000/month (depends on annual projections and regime)
Net take-home: ~₹90,000–95,000

Without software: Calculating this for 30 employees = ~6–10 hours/month minimum, assuming no errors. One wrong formula affects everyone.

With JambaHR: Set up salary structures once. Every month, create a payroll run → adjust for joiners/leavers/bonuses → process → done in under an hour.

What Payroll Software Cannot Replace

Payroll software handles routine calculations automatically. It does not replace:

A CA for annual tax filing (ITR, TDS returns, Form 24Q) — you still need a CA for this
Statutory registration — PF, ESI, PT registrations must be done separately
Complex payroll scenarios — ESOPs, director remuneration, variable pay structures may need expert guidance

Think of payroll software as handling 90% of the monthly work automatically, so your CA only needs to handle the 10% that requires expertise.

Getting Started with Payroll Software

If you're moving from spreadsheets to payroll software for the first time:

Gather your data: Employee names, CTC, state, metro/non-metro, PAN numbers, PF numbers
Set up salary structures: Enter CTC for each employee; the software calculates components
Configure your state: Ensure Professional Tax slabs are set correctly for your state
Run a test payroll: Process one month and cross-check against your existing Excel — they should match (within ₹1–2 rounding difference)
Go live: Process the next month in the software and retire the spreadsheet

For a 20-person team, this setup takes 2–3 hours. You'll recoup that time in month one.

Frequently Asked Questions

What is the best payroll software for a 15-person Indian startup? JambaHR Business or greytHR, depending on your needs. If you want payroll integrated with leave, performance reviews, and hiring — JambaHR. If you only need payroll and your CA manages everything else — greytHR.

Does payroll software file TDS returns automatically? Most Indian payroll software generates the data needed for Form 24Q but doesn't file directly — you still need a CA or use the TRACES portal for filing. Some tools like greytHR have integrations that get closer to auto-filing.

Is payroll software mandatory for Indian companies? No. But accurate payroll records and statutory compliance (PF, PT, TDS) are mandatory. Software makes maintaining those records far easier.

How does payroll software handle a mid-month joiner? Good payroll software allows you to enter a joining date and prorates the salary automatically for the month. JambaHR handles this in the per-entry adjustment screen when creating a payroll run.

Can employees download their own payslips? Yes — in JambaHR, employees have a "My Payslips" tab in their self-service portal where they can view and print all historical payslips without contacting HR.