7 Best Affordable HRMS Software for SMEs & Startups in India 2026

In today’s fast-paced business environment, small and medium enterprises (SMEs) and startups in India are increasingly turning to HR software in India to streamline their human resource processes. Managing payroll, attendance, compliance, and employee engagement manually can be time-consuming and error-prone, especially with complex Indian labor laws involving PF, ESI, PT, and TDS. This is where HRMS software India comes into play, offering cloud-based HRMS India solutions that automate routine tasks and ensure statutory compliance software India.

As we enter 2026, the demand for best HR software in India 2026 is higher than ever. Businesses are seeking affordable HRMS India options that are scalable HR software India, user-friendly, and equipped with features like mobile HR app India, attendance management software India, payroll software India, and employee self-service software. The shift towards HR automation India and HR digital transformation 2026 is driven by the need for efficiency, especially for HR software for small businesses India, HR software for SMEs India, and HR software for startups India.

A good HRMS for SMEs India or HRMS for startups India should include core functionalities such as payroll management software India, leave management software India, performance management software India, recruitment software India, employee onboarding software, and HR analytics India. Additional perks like biometric integration HRMS, shift management software, ERP integration HR software, and AI-enabled HR software make these tools future-proof.

Choosing the right HR software for small businesses involves considering factors like HRMS pricing India, ease of implementation, HRMS customer support India, and HRMS integrations. Many providers offer freemium HR software India or HRMS demo trial India to help businesses test before committing. This HR software selection guide and HR software comparison India will help you navigate options tailored for HRMS for small businesses and scalable HRMS for growth.

In this article, we’ll explore the 7 best affordable HRMS software for SMEs and startups in India for 2026. These selections are based on features, user reviews, affordability, and suitability for Indian compliance needs like PF ESI PT TDS compliance and Indian payroll compliance.

1. Salarybox – The Mobile-First Leader for Growing Teams

Salarybox tops the list as one of the best HRMS software in India for SMEs and startups in 2026. This cloud-based HRMS India is designed with a mobile-first approach, making it ideal for businesses with remote or field-based employees. It excels in payroll software India, attendance tracking software India, and mobile app attendance tracking.

Key features include touchless biometric attendance (face recognition and geo-fencing), automated payroll compliance software India for PF, ESI, TDS, and PT, employee self-service portal, leave management, and WhatsApp integrations for payslips and notifications. It’s particularly strong in attendance management software for SMEs and payroll software for small businesses India, with offline mode support for low-connectivity areas.

Pros:

• Extremely affordable and scalable, perfect for affordable HRMS for SMEs.
• User-friendly mobile HR app India with regional language support, requiring HRMS with minimal training.
• Seamless statutory compliance HRMS automation, reducing errors in labor laws compliance India.
• Fast payroll processing (under 60 seconds) and excellent local support.
• Strong employee engagement tools, boosting retention in growing teams.

Cons:

• Advanced enterprise-level analytics are emerging, which suits smaller teams focusing on core efficiencies rather than complex reporting.

Pricing starts affordably, with plans tailored for startups. Salarybox is a future-proof HRMS for businesses prioritizing simplicity and mobility.

2. greytHR – Reliable Compliance Powerhouse

greytHR is a veteran in the HRMS software in India space, trusted by thousands of SMEs for its robust payroll management software India and compliance features. This cloud-based HRMS SMEs platform handles everything from attendance to statutory filings effortlessly.

It offers biometric integration, employee self-service, leave and expense management, and detailed HR reports and analytics. Ideal for best payroll software SMEs India needing accurate PF, ESI, and TDS handling.

Pros:

• Rock-solid compliance automation HRMS with automatic updates for Indian laws.
• Excellent reporting and HR analytics for small teams.
• Good biometric and shift management support.
• Affordable for mid-sized teams with strong customer support.

Cons:

• Interfaces can feel slightly dated compared to newer platforms.
• Higher pricing for very small startups.

greytHR is great for established SMEs seeking reliability in HR compliance software.

3. Keka – Modern All-in-One HR Suite

Keka stands out as the best HR software for SMEs 2026 with its clean, employee-centric design. This HRMS and payroll software India covers payroll, performance management, recruitment, and engagement in one platform.

Features include flexi-benefits, GPS attendance, performance reviews, and integrations with accounting tools. It’s popular for performance management HRMS and employee engagement software India.

Pros:

• Intuitive UI and strong mobile app.
• Comprehensive HR automation for startups.
• Good for HR insights for SMEs with customizable dashboards.
• Scalable with AI touches.

Cons:

• Can be pricier for larger teams.
• Some advanced customizations require add-ons.

Keka is ideal for growing startups wanting a modern all-in-one HR platform small business.

4. Zoho People – Ecosystem-Friendly Choice

Zoho People is a versatile HR software India that integrates seamlessly with the Zoho suite (Books, CRM). It’s a solid cloud-based HRMS for SMEs with core HR, payroll add-ons, attendance, and self-service features.

It supports case management, performance appraisals, and basic analytics, making it suitable for HR software small business India.

Pros:

• Affordable and integrates well with other Zoho tools.
• User-friendly with a good employee self-service portal.
• Customizable forms and workflows.
• Strong for small teams already in the Zoho ecosystem.

Cons:

• Payroll is add-on/separate in some plans.
• Limited advanced compliance depth compared to dedicated payroll tools.

Zoho People shines for affordable HR software India with integration needs.

5. DarwinBox – Engaging and Customizable

DarwinBox is an emerging top HRMS software India focused on employee experience. It offers payroll, performance, recruitment, and engagement modules in a modern interface.

Key strengths include AI-driven insights, employee surveys, and robust HR analytics software.

Pros:

• Excellent employee engagement tools.
• Competitive pricing with good scalability.
• Strong performance and onboarding features.
• Mobile-first with multilingual support.

Cons:

• Some users report occasional support delays.
• Advanced features may need higher plans.

DarwinBox is perfect for startups prioritizing HRMS for employee engagement.

6. factoHR – Feature-Rich and Mobile-Optimized

factoHR is a comprehensive HRMS software for SMBs with strong mobile capabilities. It covers payroll, attendance, performance, and compliance extensively.

It includes biometric support, expense tracking, and advanced reporting.

Pros:

• Highly customizable workflows and dashboards.
• Good for onboarding automation India.
• Strong integrations and analytics.
• Suitable for multi-location teams.

Cons:

• Steeper learning curve for full utilization.
• Pricing scales up with features.

factoHR is suited for SMEs needing HRMS integrations and depth.

7. RazorpayX Payroll – Fintech-Driven Simplicity

RazorpayX Payroll leverages fintech for seamless payroll software for small businesses India. It automates compliance, direct payouts, and contractor payments.

Ideal for tech startups with gig workers, offering ESS and basic HR tools.

Pros:

• Instant payouts and strong compliance automation.
• Affordable per-employee pricing.
• Easy for contractors and freelancers.
• Integrates with banking.

Cons:

• More payroll-focused; limited full HRMS features.
• Basic attendance compared to dedicated HR tools.

RazorpayX is excellent for startups needing quick, compliant payroll.

FAQs: Choosing the Best Affordable HRMS for SMEs & Startups in India

What is the best HRMS software in India for 2026?

For most SMEs and startups, Salarybox stands out as the top choice due to its affordability, mobile-first design, seamless statutory compliance, and ease of use, ideal for scalable HRMS India and rapid growth.

Which HR software is best for small businesses in India?

Salarybox is excellent for their focus on core needs like payroll and attendance without overwhelming costs.

How much does HRMS software cost in India?

Pricing varies from ₹20-₹150 per employee/month. Many offer free trials or freemium plans for startups.

Is cloud-based HRMS better than desktop?

Yes, cloud-based HRMS SMEs offer mobility, updates, and scalability—essential for remote teams.

What features should I look for in HRMS for startups?

Prioritize payroll compliance software India, mobile app, employee self-service, and easy onboarding.

Why is Salarybox a better choice for many SMEs?

Its combination of low cost, mobile accessibility, accurate compliance, and quick setup makes it superior for small teams focusing on growth without HR complexity.

Selecting the right HRMS software for SMEs can transform your operations. Consider a demo to find the best fit for your HR efficiency software needs.