Top HRMS Software for SMBs in India (2026): What to Use and Why
Collections 🗒️
Managing employees, payroll, and compliance can become difficult for small and medium-sized businesses as teams start to grow. Manual attendance tracking, scattered employee records, and error-prone payroll processes often lead to delays, compliance risks, and wasted time. This is where HRMS software can help. A good HRMS allows SMBs to manage attendance, payroll, statutory compliance, leave, and employee data from one place, reducing manual effort and improving accuracy.
In India, HRMS tools have become especially important due to increasing compliance requirements and the rise of mobile and field-based teams. Many modern HRMS platforms are now built specifically for SMBs, offering simple setup, affordable pricing, and features that match real business needs. This article lists some of the top HRMS solutions for SMBs in India and explains what each platform helps with and who it is best suited for.
List of Best HRMS Solutions for SMBs in India
| HRMS Software | Best Known For | Ideal Company Size | Key Strengths |
|---|---|---|---|
| PagarBook | Basic attendance & wage payroll | 5–100 employees | Selfie & face-recognition attendance, quick setup, simple payroll for blue-collar teams |
| SalaryBox | Payroll with biometric & geo attendance | 20–300 employees | PF/ESI compliance, biometric integration, employee self-service portal |
| Hamara HR | AI-based attendance & HR automation | 20–200 employees | Facial recognition, geo-tagging, task tracking, centralised HR operations |
| sumHR | End-to-end HR operations | 30–500 employees | HRIS, payroll, recruitment, performance reviews, custom workflows |
| StaffApp | Employee engagement & communication | 20–300 employees | Internal communication, task visibility, engagement tools for remote teams |
| HRMThread | Feature-rich payroll & compliance HRMS | 50–500 employees | Advanced payroll reports, statutory compliance, GPS & biometric attendance |
| Excelity | Compliance-focused payroll systems | 100–1000 employees | Strong statutory accuracy, rule-based payroll, regulatory reporting |
| Genius | Enterprise-grade HRMS at scale | 200+ employees | Large client base, scalable HR functions, long-term reliability |
| Kredily | Free-forever HRMS & payroll starter | 5–50 employees | Free attendance & payroll, easy onboarding, upgrade as company grows |
| factoHR (Version Systems) | Cloud HR & performance management | 50–500 employees | Cloud-based HRMS, performance reviews, integrations with enterprise tools |
PagarBook – Best for Simple Attendance & Payroll
PagarBook is built mainly for very small businesses that are moving away from paper registers. It focuses on daily attendance, wage calculation and basic payroll rather than complex HR workflows. The platform supports selfie-based, face recognition and location-based attendance, which works well for shops, factories, warehouses and on-ground teams.
Payroll features cover essentials like salary calculation, overtime, advances, deductions, and PF/ESI generation without requiring accounting knowledge. Its strength lies in speed and ease, most businesses can start using it within a day.
SalaryBox – Best Payroll + Attendance for SMEs
SalaryBox is positioned slightly above entry-level HR tools and is designed for SMEs that want payroll accuracy with better attendance controls. It supports biometric devices, geo-fencing, mobile attendance and shift management, making it useful for teams with multiple locations or shift-based staff.
On the payroll side, it handles PF, ESI, PT, payslips and statutory reports, reducing dependency on external accountants. The employee self-service portal allows staff to view payslips, mark attendance and apply for leave, cutting down HR follow-ups.
Hamara HR – Best for AI-Enhanced HR Management
Hamara HR focuses on automating routine HR tasks using AI-driven attendance and tracking tools. It combines facial recognition, geo-tagging and real-time attendance data with payroll and employee records.
The platform also includes task assignment and tracking, which helps founders and managers monitor productivity without separate tools. Hamara HR works best when businesses want attendance accuracy, reduced manual HR work, and basic performance visibility in one system.
StartupTalky Official
sumHR – Best All-in-One for Startups & HR Operations
sumHR is a full-stack HRMS covering employee lifecycle management from onboarding to payroll, appraisals and exits. Beyond payroll and attendance, it offers HRIS, document management, performance reviews, recruitment tracking and compliance support.
The platform supports custom approval workflows and integrates with biometric devices and accounting systems. sumHR is particularly useful for teams that want to centralise HR data and processes instead of using multiple tools.
StaffApp – Best for Workforce Engagement
StaffApp is less payroll-heavy and more focused on employee engagement and internal communication. It helps companies manage announcements, tasks, surveys and feedback through a single platform, improving visibility and coordination across teams.
While payroll features are limited compared to others, StaffApp works well as a people engagement layer alongside existing HR systems, especially for distributed or frontline teams.
HRMThread – Best Feature-Rich HRMS
HRMThread offers a balanced mix of depth and flexibility, covering payroll, compliance, attendance, HRIS and reporting. It supports biometric devices, GPS-based attendance, automated statutory calculations and detailed payroll reports.
The platform is customisable, making it easier to adapt to different company policies. HRMThread stands out for businesses that want strong reporting, compliance control and scalable HR processes.
Excelity – Best Traditional HRMS with Compliance Focus
Excelity is a long-standing HRMS provider known for its compliance-driven payroll systems. It is often chosen by companies that need accuracy in statutory filings, salary structures and regulatory reporting.
While the user interface may feel more traditional compared to newer SaaS tools, its strength lies in process reliability, rule-based payroll and regulatory adherence.
Genius – Best for Large Client Base & Enterprise-Grade Features
Genius is one of India’s most established HRMS companies, serving large enterprises and growing mid-sized firms. Its platform covers payroll, HRIS, attendance, performance management and analytics at scale.
With a strong client base and high annual revenue, Genius is often selected by organisations that want long-term stability, proven systems and enterprise readiness.
Archana Karthikeyan
Kredily – Best Free-Forever HRMS & Payroll Starter
Kredily is popular among startups due to its free-forever plan, which includes attendance, payroll, leave management and basic compliance features. It allows businesses to digitise HR without upfront costs and later upgrade to paid plans for performance management and advanced reporting. Kredily is especially useful for founders who want to test HR automation before committing financially.
Version Systems (factoHR) – Best Cloud HR Automation & Performance
factoHR by Version Systems is a cloud-first HRMS offering payroll, attendance, performance management and employee self-service. It integrates well with enterprise ecosystems such as Microsoft Azure and SAP, making it suitable for tech-enabled organisations.
The performance management module allows goal setting, reviews and feedback, helping businesses align HR with productivity goals.
Rishi Mundra
FAQs
What is the best HRMS software for small businesses in India?
The best HRMS software for small businesses in India depends on team size and needs. Tools like PagarBook and Kredily suit very small teams, while SalaryBox, Hamara HR, and sumHR work better for growing SMBs that need payroll, attendance, and compliance in one system.
How does HRMS software help SMBs with payroll and compliance?
HRMS software automates salary calculation, attendance linking, payslip generation, and statutory compliance, such as PF, ESI, and professional tax. This reduces manual errors, saves time, and helps SMBs stay compliant with Indian labour laws.
Is cloud-based HRMS useful for Indian SMBs?
Yes, cloud-based HRMS allows SMBs to manage HR, payroll, and attendance from anywhere. It reduces infrastructure costs, supports remote teams, and scales easily as the business grows.
Must have tools for startups - Recommended by StartupTalky
- Convert Visitors into Leads- SeizeLead
- Website Builder SquareSpace
- Run your business Smoothly Systeme.io
- Stock Images Shutterstock
