Your CFO asks a simple question: “What will this HR software cost us per year?” You pull up a few vendor websites, and suddenly you’re drowning in “contact us for pricing”, three-tier feature grids, and asterisks leading to fine print about “additional modules.” Sound familiar?
The honest answer is — it depends. But “it depends” isn’t what you need to walk into a budget meeting. This guide gives you real numbers, real pricing models, and a checklist so you can calculate your actual first-year cost before anyone slides a contract across the table.
TL;DR — Quick Answers for Busy HR Managers
- PEPM pricing in India ranges from ₹40 to ₹200 per employee per month depending on features and vendor size
- Flat-fee plans (Keka, greytHR) start around ₹3,495/month for up to 25–50 employees
- First-year costs are typically 1.5x–2x the advertised price once setup, training, and data migration are included
- Small businesses (10–50 employees) usually land between ₹5,000 and ₹25,000 per month all-in
What Does “HR Software” Actually Include?
HR software — also called HRMS (Human Resource Management System) or HRIS — is a platform that digitises and automates your core people operations. That includes payroll processing, attendance and leave tracking, employee self-service, compliance (PF, ESI, TDS, PT), onboarding, and reporting.
The catch is that not all vendors bundle the same things under one price. What one vendor calls a “complete” plan, another charges extra for. This is the single biggest source of pricing confusion.
Before you compare costs, get clarity on which modules you need right now — and which ones you’ll need in 12 months. You can browse the full list of modules on EZHRM’s features page to understand what a complete HRMS should cover.
The Three Pricing Models You’ll See in India
1. Per-Employee-Per-Month (PEPM)
This is the most common model for cloud-based HRMS platforms in India. You pay a fixed rate for each active employee on the system, billed monthly.
- Range: ₹40 to ₹200 per employee per month
- Good for: Growing teams where headcount changes frequently
- Watch out for: Rates often jump significantly when you cross headcount thresholds (say, 50 → 51 employees)
A 30-person team paying ₹80/employee/month = ₹2,400/month = ₹28,800/year. That’s the base. Add modules, add more.
2. Flat Monthly Fee (Tier-Based)
Some vendors charge a flat fee per month for a band of employees — for example, “up to 50 employees” or “up to 100 employees”. Keka and greytHR use variations of this.
- Range: ₹3,495 to ₹15,999/month for SME tiers
- Good for: Stable teams where you know your headcount won’t swing wildly
- Watch out for: Module add-ons are almost always extra on flat-fee plans
3. One-Time License (On-Premise)
Less common now, but some mid-sized manufacturers and factories in states like Haryana, Rajasthan, and Gujarat still prefer this model for data-security reasons.
- Range: ₹50,000 to ₹5,00,000 one-time depending on modules
- Good for: Companies with strict IT policies or unreliable internet connectivity
- Watch out for: Annual maintenance charges (typically 20% of the license fee) are unavoidable
What Businesses in India Actually Pay: A Comparison Table
| Vendor | Model | Starting Price | Payroll Included | India Compliance |
|---|---|---|---|---|
| greytHR | Flat fee | ₹3,495/month (25 emp) | Yes | Yes |
| Keka HR | Flat fee | ₹9,999/month (100 emp) | Yes | Yes |
| Zoho People + Payroll | PEPM | ₹48–₹200/emp/month | Separate module | Yes |
| HROne | PEPM | ₹85/emp/month | Yes | Yes |
| EZHRM | PEPM/flat | Contact for pricing | Yes | Yes (PF, ESI, TDS, PT) |
| Darwinbox | Custom | ₹150+ /emp/month | Yes | Yes |
Prices as of May 2026. Always ask vendors for current quotes — several revised pricing in early 2026.
For most small businesses with 10–50 employees in India, you’re realistically looking at:
- 10 employees: ₹2,000–₹6,000/month
- 25 employees: ₹4,500–₹12,000/month
- 50 employees: ₹8,000–₹20,000/month
These are base subscription costs. Now let’s talk about what vendors don’t advertise upfront. You can also compare EZHRM against other HR software options side by side to see where the real differences lie.
Hidden Costs Nobody Tells You About
This is where the “₹40 per employee” plan becomes a ₹15,000/month commitment. Here are the five cost categories you need to ask about explicitly.
Setup and Data Migration
Moving your existing employee records, payroll history, attendance data, and leave balances from Excel (or a legacy system) into a new HRMS is never as simple as importing a CSV. Most vendors charge ₹5,000 to ₹30,000 for structured data migration, especially if your Excel sheets have been maintained by four different HR managers over six years.
If your team has been running payroll manually for years — which is common in manufacturing clusters like Bhiwadi, Faridabad, and Panipat — budget for at least 2–3 weeks of internal effort even after vendor assistance.
Training and Onboarding
Free training is typically 1–2 sessions, delivered remotely, and covers maybe 60% of what your HR team actually needs to know. If you want recorded videos, dedicated walkthroughs, or on-site training, expect to pay ₹8,000 to ₹25,000 as a one-time fee.
The bigger cost here is hidden: your HR team’s time during the first 1–2 months as they learn the system. Factor in at least 20–30% reduced HR productivity during the transition.
Add-on Modules
Attendance management, leave management, payroll — these three are usually bundled. But GPS geo-fencing, face recognition integration, recruitment/ATS, performance management, expense reimbursement, and POSH compliance are frequently add-ons priced separately.
Before you sign, list every feature you showed your management team in the demo. Confirm whether each one is included in your quoted plan or costs extra.
Biometric Hardware Integration
If you’re moving from a legacy biometric thumb machine to a new HRMS, integration isn’t always plug-and-play. Some older BioTime or Essl machines communicate via formats that need custom API bridges. Budget ₹3,000–₹10,000 if your hardware is more than 3–4 years old.
Renewal Surprises
Many vendors offer steep introductory discounts (30–50% off) for Year 1. Year 2 is billed at standard rates. If a vendor quotes you ₹4,000/month and doesn’t mention this, ask: “What’s the Year 2 renewal rate?”
What HR Managers Usually Get Wrong About HR Software Cost
Comparing monthly fees without aligning on module scope. A ₹5,000/month plan with payroll, attendance, leave, and ESI compliance is genuinely cheaper than a ₹3,500/month base plan where payroll is ₹2,500 extra.
Ignoring compliance depth. India-specific compliance — PF ECR filing, ESI challan, Form 24Q, professional tax slabs by state, Labour Welfare Fund contributions — is not standard across all HRMS platforms. Some tools handle pan-India payroll correctly; others are built for a single state’s rules. If you have staff in multiple states, this is critical. The EZHRM payroll module handles multi-state compliance including state-wise Professional Tax slabs automatically.
Not asking about concurrent user limits. If your subscription covers 3 admin logins but your HR team has 5 people, that’s a problem on day one. Confirm how many admin and manager seats are included.
Underestimating the cost of doing nothing. If your HR team currently spends 15 hours a month on payroll manually, and your HR executive’s fully-loaded cost is ₹40,000/month, that’s ₹10,000/month in payroll processing labour alone. Good HRMS software cuts this by 70–80%. That ROI calculation matters when justifying the spend to your management.
How to Calculate Your Actual First-Year Cost: An 8-Point Checklist
Use this before finalising any vendor:
- Base subscription — Monthly fee × 12 months
- Implementation/setup fee — One-time charge, ask explicitly
- Data migration — Do they charge extra? How many employee records?
- Training — How many sessions? Is on-site included? What’s the cost beyond the free sessions?
- Add-on modules — List every feature you need; confirm what’s extra
- Hardware integration — Any biometric or access control systems?
- Support tier — Is phone support included? What’s the SLA?
- Year 2 renewal rate — Will the price change after the introductory period?
Add items 1–8. That’s your real first-year cost. Now compare vendors on that number, not the per-employee teaser rate.
You can also use EZHRM’s Payroll ROI Calculator to estimate what your current manual process is actually costing you — the comparison is often eye-opening.
Frequently Asked Questions About HR Software Cost in India
What is the average cost of HR software for a 20-person team in India?
For a 20-person business in India, a cloud HRMS with payroll, attendance, and leave management typically costs ₹3,000 to ₹8,000 per month all-in. That works out to ₹36,000 to ₹96,000 annually — significantly less than one month’s salary for a dedicated HR executive handling the same tasks manually.
Is there any free HR software for Indian small businesses?
Truly free, full-featured HRMS with Indian payroll compliance is rare. Some platforms offer free plans for up to 5 employees, but these usually exclude payroll or statutory compliance modules. For PF, ESI, and TDS to be handled correctly, you’ll almost always need a paid plan.
Does HR software pricing include GST?
Most quoted prices exclude 18% GST. Always confirm whether the vendor’s invoice is GST-inclusive or exclusive — this affects your actual monthly outflow and your ITC (Input Tax Credit) eligibility if your business is GST-registered.
How often do HR software vendors increase pricing?
Annual price revisions of 5–15% are common, especially as vendors add features. Some lock pricing for 2–3 years under longer-term contracts. If predictability matters to you, ask for a multi-year rate guarantee before signing.
What’s the difference between HRMS and payroll software?
Payroll software handles salary calculation, salary slips, PF/ESI deductions, and TDS. HRMS is broader — it covers attendance, leave, onboarding, performance, and more, often with payroll built in. For most Indian SMEs, an integrated HRMS (rather than standalone payroll software) gives better value and fewer integration headaches. Check the HR glossary for a full breakdown of these terms.
Can I negotiate HR software pricing in India?
Yes, especially if you’re committing annually upfront, bundling multiple modules, or referring other businesses. Most Indian HRMS vendors have some pricing flexibility for SMEs. Don’t hesitate to ask for a custom quote — standard pricing pages rarely reflect what businesses actually pay.
The Bottom Line
HR software in India is genuinely affordable — more so than most HR managers expect when they first start evaluating. The confusion comes from pricing pages that don’t show the full picture. Run the eight-point checklist above, compare vendors on total first-year cost, and make sure the plan covers your specific compliance requirements (PF, ESI, TDS, PT, state-specific rules).
If you’re running a team of 10 to 500 people in India and want software that handles payroll, attendance, and compliance without requiring a full-time IT team to maintain it, check EZHRM’s pricing plans — built specifically for Indian SMEs, with transparent pricing and no surprise add-ons.