Best Payroll Software for India in 2026

Indian payroll requires managing Provident Fund (PF) and ESI contributions, Tax Deducted at Source (TDS) under Section 192, professional tax that varies by state, and Labour Welfare Fund obligations. Multi-state operations face particular complexity because professional tax rates, slabs, and filing deadlines differ across Maharashtra, Karnataka, Tamil Nadu, and every other state that levies it. This guide evaluates payroll platforms that process salaries in INR, handle statutory compliance across Indian states, and generate the Form 16 and quarterly TDS returns that employers must file.

Written by Maya PatelFact-checked by Chandrasmita

Payroll Software for India

greythr

Best for Indian SMBs and mid-market companies needing statutory compliance across all states

greytHR is one of India's most widely used payroll and HR platforms, purpose-built for the Indian compliance environment. The platform handles PF ECR (Electronic Challan cum Return) generation and EPFO portal submission, ESI contribution calculations and challan generation, professional tax for all levying states with correct slabs and filing frequencies, and TDS calculation under Section 192 including investment proof collection and Form 16 generation.

greytHR automates the Indian CTC (Cost to Company) salary structure, splitting compensation into basic salary, HRA, LTA, special allowance, and other components, and calculates the tax-saving effect of each component. The platform generates all statutory reports: Form 24Q for TDS, PF annual returns (Form 3A and Form 6A), ESI Returns, and LWF (Labour Welfare Fund) contribution files for each applicable state.

greytHR is best suited to Indian companies with 10 to 2,000 employees that want a cloud-based payroll solution that eliminates reliance on a CA or payroll bureau for routine compliance. The platform's onboarding wizard and pre-configured statutory rules reduce setup time significantly compared to configuring a generic HRMS for India.

Strengths in this market

  • Handles professional tax for all 19+ PT-levying states with correct slabs and filing schedules
  • Automated PF ECR generation and EPFO portal direct submission
  • Form 16 generation, investment proof collection, and quarterly TDS return filing

Limitations to know

  • Limited international payroll capability — focused entirely on India
  • Advanced analytics and workforce planning features are less developed than global HRMS platforms
  • Customer support response times can be slow during peak filing periods (Q1 tax season)
Starts at ~₹3,495/month for up to 25 employees; per-employee pricing above that

keka

Best for Indian tech companies and startups wanting modern HR and payroll in one platform

Keka is a modern Indian HCM platform combining payroll, attendance, leave management, and performance management in a single product. The payroll engine handles all Indian statutory requirements: PF with EPF and EPS split, ESI, TDS under Section 192 with the new tax regime (2023 onwards) and old regime calculations, professional tax across states, and LWF contributions. Keka's compliance module auto-updates when statutory rates or slab structures change.

Keka's payroll differs from older Indian platforms through its employee self-service capabilities: employees can submit investment declarations, view pay slips, download Form 16, and manage reimbursement claims without HR intervention. The platform supports flexi-benefit plans and component-wise salary structuring that is standard in Indian tech companies.

Keka is particularly well suited to Indian startups and mid-market IT/ITES companies with 50 to 5,000 employees. Its clean interface, employee self-service portal, and integration with popular Indian HRMS workflows (ESOP management, variable pay automation) make it a preferred alternative to legacy Indian payroll software.

Strengths in this market

  • Modern UI with strong employee self-service for investment declarations and Form 16 download
  • Supports both old and new tax regime calculations (post-Finance Act 2023) in the same payroll run
  • Flexi-benefit plan configuration for tax-efficient salary structuring

Limitations to know

  • Pricing is higher than greytHR for comparable employee counts
  • No payroll processing outside India — not suitable for multi-country operations
  • Some advanced payroll scenarios (arrear calculations, retroactive changes) require manual configuration
Foundation plan from ~₹6,999/month; per-employee pricing for larger organizations

razorpay-payroll

Best for Indian startups wanting payroll integrated with their existing Razorpay banking stack

Razorpay Payroll (part of the RazorpayX business banking suite) offers automated Indian payroll with direct salary disbursement through Razorpay's payment infrastructure. The platform handles PF, ESI, TDS, and professional tax calculations, generates Form 16 and quarterly returns, and disburses employee salaries directly to bank accounts through the same platform — eliminating the need for a separate salary transfer process.

Razorpay Payroll's integration with RazorpayX current accounts means payroll approval and disbursement happen in a single workflow, with automated challan payments for PF and ESI remitted to the relevant government portals directly from the payroll run. The platform also handles contractor payments and compliance (TDS under Section 194C) alongside regular employee payroll.

Razorpay Payroll suits Indian startups and SMBs that already use Razorpay for payments and want to consolidate business banking and payroll on one platform. Companies that do not use Razorpay for other financial operations will find the integration advantage less compelling.

Strengths in this market

  • Direct salary disbursement and PF/ESI challan payment from within the payroll platform
  • Handles contractor TDS (194C) alongside regular employee payroll in one workflow
  • Simple onboarding with pre-configured Indian statutory settings

Limitations to know

  • Best value for companies already in the Razorpay ecosystem; limited advantage otherwise
  • Fewer advanced HR features compared to Keka or greytHR
  • Limited suitability for large enterprises with complex payroll requirements
From ₹2,999/month for up to 20 employees; per-employee pricing above that
Deel logo

Deel

Best for foreign companies hiring in India without a local entity

Deel's EOR service in India handles PF registration and contributions, ESI deductions for eligible employees, TDS calculations under Section 192, and professional tax filings across all Indian states where the company has employees. Foreign companies can hire Indian workers through Deel without establishing a private limited company or LLP in India.

For companies with an existing Indian entity, Deel's global payroll product integrates with local payroll processors to provide a consolidated multi-country view. The platform generates Form 16 for employees and handles quarterly TDS return filing through its local partners.

Strengths in this market

  • Handles PF, ESI, and professional tax across all Indian states
  • Generates Form 16 and files quarterly TDS returns
  • Enables hiring in India without establishing a local entity

Limitations to know

  • EOR per-employee cost is high compared to running payroll through a local entity
  • Limited flexibility for complex Indian CTC structures with multiple allowance components
  • Support response times may not align with Indian business hours
EOR from $599/employee/month; Global Payroll from $29/employee/month
Rippling logo

Rippling

Best for US companies with an Indian subsidiary

Rippling's global payroll extends to India through local payroll processor integrations, giving US-headquartered companies a single platform for managing both US and Indian payroll. The system handles the standard Indian statutory deductions — PF at 12% employee and 12% employer contribution, ESI at 0.75% employee and 3.25% employer for eligible employees, and TDS based on the employee's declared investment proofs.

Rippling supports the CTC (Cost to Company) salary structure that is standard in India, breaking compensation into basic salary, HRA, special allowance, and other components. The platform calculates tax-saving declarations under Section 80C, 80D, and HRA exemptions to determine monthly TDS withholding.

Strengths in this market

  • Unified dashboard for US and India payroll with INR processing
  • Supports Indian CTC salary structure with component-level breakdown
  • Handles Section 80C/80D declarations and HRA exemption calculations

Limitations to know

  • Indian payroll processed through local partner, not Rippling's own engine
  • Limited support for complex reimbursement policies common in Indian companies
  • Professional tax configuration for less common states may require manual setup
Global payroll pricing on request; base platform from $8/user/month
ADP logo

ADP

Best for large enterprises running payroll across multiple Indian states

ADP has a long-established presence in India and processes payroll for enterprise clients with thousands of employees spread across multiple states. The platform handles the full spectrum of Indian statutory compliance: PF with both EPF and EPS split, ESI including the 2019 wage ceiling changes, professional tax for all levying states, Labour Welfare Fund contributions, and TDS with automated investment proof collection.

ADP's India payroll engine handles complex scenarios that smaller platforms struggle with — inter-state employee transfers that change professional tax jurisdiction, arrear calculations with revised tax treatment, gratuity provisions under the Payment of Gratuity Act, and bonus calculations under the Payment of Bonus Act.

Strengths in this market

  • Deep expertise in multi-state professional tax compliance across India
  • Handles complex arrear calculations, gratuity, and bonus provisions
  • Automated PF ECR generation and ESI contribution filing

Limitations to know

  • Enterprise pricing puts it out of reach for companies under 500 employees
  • Implementation can take 3-5 months for complex multi-state setups
  • User interface is functional but not modern compared to newer platforms
Enterprise pricing on request; typically Rs 100-250/employee/month for India
Workday HCM logo

Workday HCM

Best for MNCs standardized on Workday needing Indian payroll integration

Workday HCM integrates with certified Indian payroll partners to process INR payroll for multinational corporations. Companies already running Workday globally can extend it to India without maintaining a separate HRIS, and employee data flows automatically from Workday's core HR module to the local payroll engine.

The platform supports Indian CTC structures, statutory compliance reporting, and Form 16 generation through its localization partners. Workday's value for Indian payroll is in consolidated global reporting and workforce analytics rather than direct payroll processing.

Strengths in this market

  • Seamless integration with global Workday HCM deployment
  • Consolidated reporting across India and other country payrolls
  • Supports Indian CTC structures and statutory compliance through partners

Limitations to know

  • Requires Workday HCM — not available as standalone India payroll
  • Actual payroll processing handled by local partner, not Workday directly
  • Total cost is among the highest for any payroll solution in India
Enterprise pricing; Workday HCM typically $100-175/user/month globally
Paylocity logo

Paylocity

Best for US mid-market companies adding Indian operations

Paylocity's global payroll capability covers India through local processing partners, allowing mid-market US companies to add Indian payroll without switching from their existing Paylocity setup. The platform handles basic Indian statutory compliance including PF, ESI, and TDS, with consolidated reporting across US and Indian payroll.

For companies with 20-200 employees in India, Paylocity offers a more affordable entry point than enterprise platforms like ADP or Workday while still providing multi-country visibility. The depth of Indian payroll handling depends on the local partner's capabilities.

Strengths in this market

  • Affordable multi-country payroll for mid-market companies
  • Consolidated US and India payroll reporting
  • Strong employee self-service portal accessible to Indian employees

Limitations to know

  • Indian payroll depth limited by local partner capabilities
  • May not handle all professional tax state variations natively
  • Less established in India than ADP or dedicated Indian payroll providers
US payroll from ~$18/employee/month; India add-on pricing varies
Paychex logo

Paychex

Best for small US businesses paying a few employees in India

Paychex offers international payroll services covering India through its partner network, giving small US businesses a single vendor for domestic and Indian payroll. The managed service handles PF registration, ESI compliance, TDS filing, and monthly INR salary processing.

For companies with fewer than 20 employees in India, Paychex provides a managed approach that avoids the complexity of setting up direct relationships with Indian payroll providers. The trade-off is limited configurability for complex Indian compensation structures.

Strengths in this market

  • Single vendor for US and India payroll for small businesses
  • Managed compliance reduces burden on teams without Indian payroll expertise
  • Handles PF, ESI, and TDS filing through local partners

Limitations to know

  • Limited support for complex Indian CTC structures and flexible benefits
  • Higher per-employee cost for small Indian headcounts
  • Less configurability than dedicated Indian payroll platforms
International payroll pricing on request; US payroll from $39/month + $5/employee
ADP Workforce Now logo

ADP Workforce Now

Best for mid-market companies needing integrated HR and payroll for India

ADP Workforce Now connects to ADP's Indian payroll infrastructure, giving mid-market companies an integrated HR and payroll platform that handles Indian statutory compliance. The platform supports PF ECR generation, ESI returns, professional tax across states, and TDS quarterly filings.

Companies with 50-500 employees in India benefit from Workforce Now's direct connection to ADP's local payroll engine, which has years of Indian compliance logic built in. The platform handles CTC breakdowns, investment declaration workflows, and Form 16 generation.

Strengths in this market

  • Direct access to ADP's Indian payroll engine with deep compliance logic
  • Integrated HR, attendance, and payroll management
  • Handles CTC structures, investment declarations, and Form 16 generation

Limitations to know

  • Higher cost than India-only payroll providers for purely domestic operations
  • Interface feels less modern than newer cloud-native alternatives
  • Some India-specific features require additional module purchases
Mid-market pricing; India payroll typically Rs 150-300/employee/month
Workday logo

Workday

Best for enterprises needing unified global payroll analytics including India

Workday's global payroll platform provides the analytics and reporting layer for Indian payroll processed by certified local partners. Enterprises with operations across Asia-Pacific can use Workday to consolidate payroll cost reporting, workforce planning, and compliance dashboards for India alongside other countries.

The platform does not process Indian payroll directly but provides the upstream workforce data management, compensation structures, and approval workflows that feed into local payroll execution. For companies already invested in Workday, this avoids maintaining parallel systems.

Strengths in this market

  • Consolidated payroll analytics across India and global operations
  • Strong workforce planning and compensation modeling for INR structures
  • Seamless data flow from global HCM to Indian payroll processors

Limitations to know

  • Does not process Indian payroll directly — requires certified local partner
  • Extremely high total cost for companies without existing Workday investment
  • Overkill for India-only or small-scale Indian operations
Enterprise pricing on request; full platform typically $100+/user/month
TriNet Zenefits logo

TriNet Zenefits

Best for small businesses wanting simple Indian contractor payments

TriNet Zenefits does not offer full Indian employee payroll processing, but its platform can manage contractor payments to Indian workers. Small US businesses that engage Indian contractors for specific projects can process payments through the platform while managing their US employees' payroll and benefits in the same system.

For actual W-2 equivalent employee payroll in India, businesses would need to pair TriNet Zenefits with a dedicated Indian payroll provider or use an EOR service. The platform's value for India is limited to contractor management and basic international payments.

Strengths in this market

  • Integrated US HR and benefits with contractor payment capabilities
  • Simple interface for managing a mixed US employee and India contractor workforce
  • Affordable base pricing for small businesses

Limitations to know

  • Does not handle full Indian employee payroll or statutory compliance
  • No PF, ESI, or TDS processing for Indian employees
  • Limited to contractor payments for India — not a complete payroll solution
Platform from $8/employee/month for US; contractor payments additional

Indian Payroll Rules: PF, ESI, TDS, Professional Tax, and Multi-State Compliance

Employee Provident Fund (EPF) contributions are mandatory for establishments with 20 or more employees. Both employer and employee contribute 12% of basic salary plus dearness allowance — the employee's 12% goes entirely to EPF, while the employer's 12% is split between EPF (3.67%) and EPS (8.33%, capped at Rs 15,000 basic salary). Contributions must be deposited by the 15th of the following month, and the ECR (Electronic Challan cum Return) must be filed on the EPFO portal. Late deposits attract interest at 12% per annum plus damages ranging from 5% to 25% depending on the delay period.

ESI (Employee State Insurance) applies to establishments with 10 or more employees in states where ESI is notified. Employees earning up to Rs 21,000/month (or Rs 25,000 for employees with disability) are covered. The employee contributes 0.75% and the employer contributes 3.25% of gross wages. ESI contributions are filed semi-annually, and the contribution period runs April-September and October-March. Employers must also maintain an ESI dispensary or pay a medical bonus for eligible employees.

TDS (Tax Deducted at Source) under Section 192 requires employers to estimate each employee's annual taxable income, apply the applicable income tax slab rates, and deduct tax proportionally from each month's salary. India offers two tax regimes — the old regime with deductions under Sections 80C, 80D, HRA exemption, and others, and the new regime with lower slab rates but no deductions. Employers must allow employees to choose their regime at the start of the financial year. Quarterly TDS returns via Form 24Q must be filed by the 31st of the month following each quarter.

Professional tax varies significantly by state. Maharashtra levies up to Rs 2,500 per year with monthly deduction from salary. Karnataka charges Rs 200/month for salaries above Rs 15,000. Tamil Nadu levies Rs 2,500 per half-year. Telangana, West Bengal, Gujarat, Andhra Pradesh, and several other states have their own slabs and filing schedules. States like Delhi, Haryana, and Rajasthan do not levy professional tax. Payroll software must track each employee's work state and apply the correct rates — and must update when employees transfer between states.

Pay frequency in India is monthly, with salaries typically credited between the last working day of the month and the 7th of the following month. The Payment of Wages Act requires wages to be paid within 7 days of the wage period for establishments with fewer than 1,000 employees, and within 10 days for larger establishments. Employers must issue monthly payslips showing basic salary, all allowances, PF deduction, ESI deduction, professional tax, TDS, and net pay. Form 16 — the annual tax certificate — must be issued to employees by June 15th following the financial year end.

How to Choose Payroll Software for India

Start by understanding whether you need employee payroll processing in India or contractor payments. Full employee payroll requires PF registration, ESI compliance (for establishments with 10+ employees), TDS filing, and professional tax registration in each state where you have employees. Contractor payments are simpler but still require TDS deduction under Section 194J or 194C depending on the nature of services.

Multi-state professional tax is the compliance area that catches most companies off guard. Maharashtra charges a maximum of Rs 2,500/year with monthly deduction, Karnataka has different slabs, Tamil Nadu levies it semi-annually, and several states do not levy professional tax at all. Your payroll software must track which state each employee works in and apply the correct professional tax slab and filing schedule. Ask vendors specifically how many Indian states their professional tax module covers.

CTC (Cost to Company) structure support is essential. Indian compensation is typically broken into basic salary (usually 40-50% of CTC), HRA (house rent allowance), special allowance, and various other components. The split matters because PF is calculated on basic salary, HRA exemption depends on the basic-to-HRA ratio and actual rent paid, and different components have different tax treatments. Payroll software that cannot handle component-level CTC structures will produce incorrect tax calculations.

Evaluate the investment declaration and proof collection workflow. Indian employees submit investment declarations at the start of the financial year (April) and proofs before January-February. The payroll system needs to collect these declarations, calculate provisional TDS based on declared investments, and then reconcile against actual proofs submitted. Systems that handle this poorly either over-deduct TDS throughout the year (frustrating employees) or under-deduct and create large March adjustments.

Finally, check Form 16 generation and quarterly TDS return filing capabilities. Form 16 is the annual tax certificate that every salaried employee needs for filing their income tax return. Quarterly TDS returns (Form 24Q) must be filed within 31 days of each quarter end. Late filing attracts penalties of Rs 200 per day. Your payroll software should generate both automatically with the correct challan references.

What Payroll Experts Say About Running Payroll in India

Indian payroll complexity is often underestimated by foreign companies because the statutory rates themselves are straightforward — 12% PF, defined ESI rates, progressive income tax slabs. The complexity lives in the interactions between components, the state-level variations, and the sheer volume of compliance filings. A company with 200 employees across five Indian states might have different professional tax obligations in each state, employees crossing the ESI wage threshold at different points during the year, and varying PF contribution rates for employees who opted for the higher voluntary contribution.

The shift to unified PF ECR (Electronic Challan cum Return) filing has simplified Provident Fund compliance significantly, but the system is unforgiving of errors. Incorrect UAN (Universal Account Number) mapping, wrong wage breakdowns between EPF and EPS contributions, or mismatched challan amounts create delays that affect employee PF accounts. Payroll software that validates ECR data before submission prevents the most common filing errors.

One area where Indian payroll regularly creates problems is the financial year-end TDS reconciliation in March. Throughout the year, payroll systems calculate TDS based on projected annual income and declared investments. In March, actual proof submissions often differ from declarations, employee salary changes during the year affect projections, and the final TDS liability must be settled. Payroll platforms that handle this reconciliation smoothly — adjusting the March payroll to settle the full-year TDS position — save finance teams significant manual effort.

For companies choosing between a global payroll platform and an India-specific provider, the decision usually comes down to headcount. Below 50 employees, India-specific providers like greytHR, Keka, or Zoho Payroll often provide deeper local compliance at lower cost. Above 200 employees with multi-country operations, global platforms like ADP or Workday provide the consolidated reporting that CFOs need. The 50-200 range is where the decision is least clear-cut, and companies often do well with a global platform that has a strong Indian payroll partner.

Frequently asked questions

Question 1

How does multi-state professional tax compliance work in India, and which payroll software handles it correctly?

Professional tax in India is levied by individual states, and the rates, slabs, and filing deadlines differ materially across states. Maharashtra levies a maximum of Rs 2,500 per year with monthly salary deductions. Karnataka charges Rs 200 per month for salaries above Rs 15,000. Tamil Nadu levies Rs 2,500 per half-year. Telangana, West Bengal, Gujarat, Andhra Pradesh, and several others have their own distinct slabs and schedules. States like Delhi, Haryana, and Rajasthan do not levy professional tax at all. When an employee transfers between states, the payroll system must update the professional tax jurisdiction and apply the new state's rules from the correct date. ADP India's payroll engine has the most established track record for multi-state professional tax across all levying states. Rippling and Paylocity handle professional tax through local partners, which means depth varies. Any payroll platform you evaluate for a multi-state Indian operation must be asked specifically how many states their professional tax module covers and whether it handles inter-state transfers automatically.

Question 2

What are the PF ECR filing requirements and what happens if an employer misses the EPF deposit deadline?

EPF (Employee Provident Fund) contributions must be deposited by the 15th of the month following the salary month. Both employer and employee contribute 12% of basic salary plus dearness allowance — the employee's 12% goes entirely to EPF, while the employer's 12% splits into EPF (3.67%) and EPS (8.33%, capped at Rs 15,000 basic salary). The Electronic Challan cum Return (ECR) must be filed on the EPFO portal, linking each contribution to the employee's Universal Account Number (UAN). Late deposits attract interest at 12% per annum plus damages ranging from 5% to 25% depending on the delay period. Incorrect UAN mapping, wrong EPF/EPS wage breakdowns, or mismatched challan amounts create delays that affect employee PF account crediting and can trigger EPFO notices. Payroll software that validates ECR data before submission prevents the most common errors. ADP India's platform has native ECR generation with pre-submission validation, while platforms like Rippling process ECR through local partners.

Question 3

How should payroll software handle TDS under Section 192, including the investment declaration and Form 16 workflow?

TDS under Section 192 requires employers to estimate each employee's annual taxable income, apply the applicable income tax slab rates, and deduct tax proportionally from each month's salary. India offers two tax regimes — the old regime with deductions under Sections 80C, 80D, HRA exemption, and others, and the new regime with lower slab rates but no deductions. Employees must choose their regime at the start of the financial year (April). Payroll systems collect investment declarations at the start of the year, calculate provisional TDS throughout the year, and then reconcile against actual proof submissions before January-February. The March payroll is particularly complex: actual proof submissions often differ from declarations, salary changes during the year affect projections, and the final TDS liability must be settled. Quarterly TDS returns via Form 24Q must be filed within 31 days of each quarter end — late filing attracts Rs 200 per day in penalties. Form 16, the annual tax certificate, must be issued to employees by June 15th following the financial year end. Platforms like ADP Workforce Now with direct access to ADP's Indian payroll engine automate this full cycle including Form 16 generation.

Question 4

What is the ESI contribution structure and when does it apply to Indian employees?

ESI (Employee State Insurance) applies to establishments with 10 or more employees in states where ESI is notified. Employees earning up to Rs 21,000 per month — or Rs 25,000 for employees with disability — are covered under the scheme. The employee contribution rate is 0.75% of gross wages and the employer's rate is 3.25%. ESI contributions are filed semi-annually, covering the periods April-September and October-March. A critical threshold scenario arises during the year when an employee's salary crosses Rs 21,000 — once an employee whose salary was below the threshold at the start of the contribution period crosses it mid-period, they continue in ESI for the rest of that contribution period. Similarly, an employee who was above the threshold at the start but whose salary drops below it stays excluded until the next contribution period. Payroll software must correctly handle these threshold transitions. Employers must also maintain an ESI dispensary or pay a medical bonus for eligible employees, depending on the dispensary coverage in the area.

Question 5

Which payroll software is best suited for Indian companies with 50–200 employees managing both PF, multi-state PT, and complex CTC structures?

The 50-200 employee range is where the payroll software decision is least clear-cut for India. Below 50 employees, India-specific providers like greytHR, Keka, or Zoho Payroll often deliver deeper local compliance at lower cost than global platforms. Above 200 employees with multi-country reporting needs, ADP or Workday provide the consolidated capabilities CFOs require. For 50-200 employees with multi-state operations, ADP Workforce Now is the most established choice because it connects directly to ADP India's payroll engine — which has years of multi-state professional tax logic, ECR validation, and CTC structure support built in. The platform handles investment declaration workflows, Form 16 generation, and quarterly TDS return filing (Form 24Q) through the local engine rather than a third-party partner. Rippling serves this range well for companies that need tight US-India payroll consolidation. The core evaluation criteria should be: how many states does the professional tax module cover, does the CTC component breakdown calculate PF and HRA exemptions correctly, and does the system handle the March TDS reconciliation automatically without manual adjustments.

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