10 Best HR Compliance Software in India for Small Businesses and Startups
July 3rd 2024
Founders, HRs, and Finance professionals working in startups have a lot on their plates. They handle hiring, sales, marketing, operations, and more! The last thing they want to deal with is compliance.
However, paying attention to tax compliance, leave policies, and statutory compliance could lead to legal trouble, penalties and unwanted hassle.
Compliance software monitors all internal systems and controls and ensures that your business follows country-specific statutory rules and regulations.
Selecting the appropriate compliance software can be a considerable challenge. Due to a lack of legal knowledge, founders often need clarification about which software to choose and what features to prioritise.
This article focuses on India's best human resource compliance software for startups and SMEs. After reading this article, you will know which compliance software you want to invest in.
Let’s get started.
Table of Contents
Essential Features to Look Out for in the Best HR Compliance Software
While established regulations exist for HR, payroll, talent acquisition, and other business functions, many companies suffer penalties for unintentional non-compliance. These include missing regulation changes or failing to update their HR systems.
Businesses need the right HR compliance software to handle all these compliance needs. When researching for a compliance tool, make sure to look for the following features:
Features for HR Professionals
Automated updates for labour laws and related regulations
Automated compliance report and challan generation
Compliance with the Factories Act, Minimum Wages Act, the Payment of Bonus, etc.
Automated state and industry-specific minimum wage calculations
Accurate overtime calculation and compliance with maximum working hours regulations
Statutory forms and report generation
Secure employee data storage and compliance with data protection laws
Automated PT, IT, TDS calculations, PF, ESI, gratuity and benefits management
Configurable company and state-specific policies and compliance with them
Audit trails for all compliance-related activities
Features for Employees
Compliance filings and deadline tracking
Accurate deduction of taxes and other statutory contributions
Download option for Form 12BB, Form 16 and other tax-related documents
Employee Self Serve portal to access payslips, edit personal info, and upload IT declarations
Mobile app for easy access
List of Top HR Compliance Software in India
Craze
Keka
HROne
FactoHR
GreytHR
ZingHR
BambooHR
Kredily
Zimyo
PocketHRMS
Quick Comparison of Top 3 Human Resource Compliance Software in India
In this section, we are listing the top compliance software in India. We will cover these in detail in the next section.
Tool name
Craze
FactoHR
Kredily
Pros
Error-free, compliant salary components; 24/7 SME support
Automatic calculations and easy payroll and legal compliance
Auto payslip generation and easy tracking of employee records
Cons
Mobile application is not available, but web application compensates for it
IT calculations are not up to the mark
Frequent software updates disrupt the data
Ideal for
Startups and SMEs with less than 100 employees looking for advanced HR and payroll compliance features without feature lock-ins
SMEs looking to automate IT calculations and payroll compliance
Medium to large enterprises looking for advanced compliance features
Starting price
₹40/employee/month for core HR and compliances
Undisclosed
₹1499/Month for up to 25 employees and ₹60/extra employee
Top 10 HR Compliance Software
Craze
Craze is an HR and payroll compliance software that helps Indian startups and SMEs build their payroll operations from scratch. It helps you process compliant payroll, follow tax rules, and develop leave policies aligned with Indian regulations. Though a new HR and compliance software, Craze is winning hearts by serving startups with tailored features and flexible pricing.
Craze best features
Indian tax scheme-friendly salary structures for your employees
Flexible Benefit Plan (FBP) components to provide tax-free allowances and reduce taxable income
Process payroll error-free, compliant and on-time
Ensure accurate deductions for statutory components such as TDS, PF, PT, and ESIC
Generate automated tax reports for employees with detailed summaries of EPF, ESIC and TDS taxes
Process contractor payments effortlessly without manually calculating TDS and GST slabs
Pros
All-in-one people operating system, where HR, payroll, leave and attendance software are auto-synced
Exceptional support from SMEs on all your queries
Flexible per-user/per-month pricing without any minimum commitments
Cons
Mobile application is not available, but web application compensates for it
Ideal for: Startups and SMEs with less than 100 employees looking for advanced HR and payroll compliance features without feature lock-ins
Pricing
Growth: ₹40/employee/month, ideal for startups, SMEs and growing businesses. Access to all core HR compliances without any feature gating
Custom: Custom pricing, ideal for enterprises with over 100 employees. Craze creates custom plans with unique features under this package
Keka
Keka handles compliance requirements with local and national authorities in India. It automates Provident Fund (PF) and Professional Tax (PT) calculations and generates state-specific PT forms with built-in rules.
Keka best features
Configure ESI calculation rules and auto-generate filing outputs meeting ESI office standards
Automated allowance and deductions breakdown as per the Income Tax department’s prescribed sections
HR policy templates for employee code of conduct, PTO, etc. for documentation and compliance
Learn more about Keka features in this detailed Keka Review.
Pros
Handles complex payroll calculations
Ensures compliance with tax regulations and statutory requirements
Cons
PF integration is complex through the mobile app
Compliance features like all state holidays and update notifications are missing
Ideal for: Medium to large enterprises looking for comprehensive HR compliance solutions
Pricing
Foundation: ₹9,999/month for up to 100 employees and ₹90/month per extra employee
Strength: ₹12,999/month for up to 100 employees and ₹120/month per extra employee
Growth: ₹15,999/month for up to 100 employees and ₹150/month for each extra employee
HROne
HROne complies with HR/ISO standards, labour laws, tax regulations, and other legal requirements in payroll. The system auto-configures according to updated legal standards.
HROne best features
Auto deductions of PF, ESI, and other allowances
Generate statutory compliant PT, ESI, and IT challans
A comprehensive checklist to stay updated on compliance requirements
Get more insights into HROne features in this HROne Review.
Pros
Automatic tax calculation and salary structuring
Auto payslip generation and publish option
Cons
The mobile app is slow
The tool processes F&F settlements a few days later and not on the same day of relieving
Ideal for: Medium-sized businesses with 50+ teams looking for basic payroll compliance features
Pricing
Basic: ₹85/user/month with no access to workforce and expense management features. Subscriptions start at ₹5000/month
Professional: ₹115 /user/month with no access to performance and expense management and helpdesk features
Enterprise: Custom pricing
FactoHR
FactoHR handles payroll compliance, such as IT, PT, gratuity, leave encashment, etc. It also automates tax calculations and deducts Labour Welfare Fund components and TDS.
FactoHR best features
Configure PF rules and choose PF and ESI wage components to calculate salaries, ESI wages, and arrears
Generate Form 24Q for quarterly TCS/TDS return submission and file IT returns, maintaining IT compliance
IT declaration feature to help users in income tax computation
Pros
Makes payroll, attendance, and legal compliance easy and error-free
Financial analysis is more straightforward with automatic calculations
Cons
The IT calculations are not up to the mark
The UI isn’t interactive and easy to navigate
Ideal for: SMEs looking to automate IT calculations and payroll compliance
Pricing
Not disclosed on the website.
GreytHR
GreytHR automates payroll and tax compliance, ensuring error-free employee salaries and settlements.
GreytHR best features
Generate payslips, IT, PT, ESI reports, and challans
Automate PF calculations with ECR generation
Auto-calculate and deduct TDS and LWF
Know more about GreytHR features in our GreytHR Review.
Pros
Easy payroll processing and report generation
Download the option for salary slips, documents, and Form 16
Cons
Limited banking integrations for salary disbursements
No auto sign-out feature
Ideal for: SMEs looking for basic payroll compliance features
Pricing
Starter: ₹0/month for 25 employees with no access to a configurable salary structure
Essential: ₹3495/month for 50 employees and ₹30/month/employee for extra employees. No access to employee exit management
Growth: ₹5495/month for 50 employees and ₹60/month for each extra employee
Enterprise: ₹7495/month for 50 employees and ₹100/month/employee for extra employees
ZingHR
BambooHR
BambooHR ensures compliance with HR and labour laws. It handles payroll, files taxes on your behalf, and provides standard reports. The tool also complies with HR policies related to workplace discrimination, safety, wages, etc.
BambooHR best features
Standard payroll reports like direct deposit, payroll info checkup, etc., to ensure compliance
Compliance checklists to ensure that employees follow rules and procedures
Automated tax calculations and form generation for US-based employees
Pros
Access to payroll reports to track employee hours
Direct download of tax forms from the platform
Cons
Limited performance management features
Only managers can access and control time-off permissions
Ideal for: Enterprises with a global workforce looking for basic compliance software
Pricing
Not disclosed on the website
Kredily
Kredily is one of the top HR compliance software for documentation, reporting, and compliance deadline monitoring. The tool automates calculating PF, ESI, PT, and TDS, adhering to local and national laws.
Kredily best features
Reporting and analysis to track compliance metrics and generate compliance reports
Real-time monitoring and alerts for regulation changes and issues
Generate PF, ESI, TDS, and PT reports complying with regulatory mandates
Learn more about Kredily’s features in this Kredily Review 2024.
Pros
Securing and compliant data storage
Generating payslips and tracking employee records, files, etc., is easy
Cons
Frequent updates disrupt the data
Auto logout issues when a user is inactive on the website for sometime
Ideal for: Medium to large enterprises looking for advanced compliance features
Pricing
Free forever: ₹0 /Month and no access to PF, ESI challan generation, IT calculations, Forms 12BB, 16, and 24Q, etc.
Professional: ₹1499/Month for up to 25 employees and ₹60/ employee from the 26th one. IT computation is available as an add-on
Enterprise: Custom pricing
Zimyo
Zimyo’s payroll compliance software ensures automated and error-free statutory compliance calculations. Configure the PF and ESI rules to automate calculations and deductions during salary processing.
Zimyo best features
Incorporate LWF in salary structure, calculate state-wise contributions, and automate deduction
Automate state-specific PT calculation, download reports, and PT challans
Auto approval of investment declarations
Pros
It’s easy to track and manage employee details like compensation, hours worked, etc.
Detailed payroll reports like reimbursement, insurance, wage slips, and cost sheets
Cons
Notifications and approval systems need improvement
Sometimes, the software’s web version takes time to open
Ideal for: SMBs and enterprises looking for payroll compliance automation
Pricing
Basic: ₹80/ user/ month with least billing for 40 users
Standard: ₹120/ user/ month with least billing for 40 users. No access to global payroll compliance
Enterprise: ₹125/ user/ month with least billing for 40 users. Error-free salary disbursement and other payout features are available as add-ons
PocketHRMS
PocketHRMS’s compliance software ensures payroll statutory compliance and automated gratuity calculations for employee exit.
PocketHRMS best features
Automated PF, IT, PT, ESI, and arrears calculations
Generate regulatory forms like ECR, Form 16, etc., for IT and PF contributions
Automated F&F calculation with leave encashment and asset recovery
Pros
Easy to download payroll reports
Fast and compliant payroll processing
Cons
Outdated mobile app interface
Needs more features for ATS, like Parsing
Ideal for: SMEs with 50+ employees looking for statutory tax and compliance automation
Pricing
Standard: ₹2495/month for up to 50 employees and ₹40/employee/month 51st employee onwards
Professional: ₹3995/month for up to 50 employees and ₹80/employee/month 51st employee onwards. No access to exit and F&F and transfer features
Premium: Custom pricing
Related Articles
How to Select the Best Human Resource Compliance Software?
While features save you from a boatload of compliance efforts, here are a few questions you must ask to test the tool's other aspects.
Is the software user-friendly? Can HR professionals and employees use the tool without hard-core training? Find out if the tool is easy to adopt
How frequently is the software updated? Check if the software auto-updates with changing laws and regulations
Does the tool support my compliance needs? Identify your compliance needs for HR, payroll, leave management, etc., and check if the tool supports them
Does the tool offer data security and compliance? Check if the software complies with the data protection laws and provides secure storage for sensitive company and employee data
Is the software customisable? Can you customise company policies and state-wise regulations to ensure 100% compliance?
Does the vendor provide dedicated customer support? Check if the customer support team is prompt enough to address compliance issues without additional costs
Conclusion
Time to make a final decision based on selecting the best compliance software that suits your team and use cases perfectly. We don’t want to sound biased, but we believe Craze is the right choice for startups and SMEs. It is a simple compliance software with flexible pricing options.
You are a right fit for Craze if:
You are building a compliant people operating system in your organisation that handles HR, finance, and IT within a single dashboard
You are frustrated with the high price-feature gating model that most compliance software follow
You are looking for genuine, empathetic support
Want to know more?
FAQs
What is the cost of HR compliance software in India?
The cost of compliance software in India varies widely, ranging from free plans to ₹15,999 per month for up to 100 employees, with additional per-employee charges for larger teams.
Why should I implement compliance software for HRs?
Implementing compliance software helps avoid legal troubles, penalties, and unwanted hassles by ensuring adherence to tax regulations, leave policies, and statutory compliances, which is especially important for startups and SMEs.
What are the key things to look for in HR compliance software?
Look for user-friendliness, frequent updates, support for specific compliance needs, data security, customisability, and dedicated customer support.
What features should I look for in human resource compliance software?
Key features include automated updates for labour laws, compliance report generation, statutory form generation, secure data storage, automated tax calculations, configurable policies, and employee self-service portals.
Does compliance software offer built-in features for payroll and core HR?
Yes, compliance software like Craze has a strong core HR and built-in payroll software that syncs deeply in real-time.
What are the different pricing models in HR compliance software?
It is per-user-based. Some companies have feature gating and minimum users. Craze doesn't have restrictions and has transparent pricing.
