In today’s fast-paced business environment, managing HR manually can slow you down — especially if you’re a small business trying to scale. Finding the best HRMS software in India is crucial to streamline your human resources, reduce costs, and stay compliant.
In this blog, we’ll explore the top 5 HRMS software in India and help you discover the best HRMS software for small businesses — including options that are affordable, scalable, and even free HRMS software in India.

Why Small Businesses in India Need HRMS Software:
From startups in Bangalore to digital agencies in Mumbai, Indian small businesses often face similar challenges:
- Manual payroll and compliance errors
- Unorganized employee records
- Inefficient attendance tracking
- Lack of automation and visibility
That’s why modern HRMS tools are no longer a luxury — they are essential.

Top 5 HRMS Software in India (2025 Edition)
Here are the top 5 HRMS software in India trusted by thousands of small and mid-sized businesses:
Want to skip the search and explore the best HRMS software for your business? Click here to discover!
1. Zoho People – Great for Companies Using Zoho Suite
A part of the Zoho ecosystem, Zoho People integrates smoothly with other Zoho products. It’s flexible, cloud-based, and has a free plan for very small teams.
Pros:
- Good for teams already using Zoho CRM or Zoho Books
- Custom workflows and reports
- Mobile app and employee self-service
Cons:
- May feel complex for very small or non-tech-savvy teams
- Some features are locked behind higher plans
2. Clan HRM – Best HRMS Software in India for Small Businesses
Clan is a modern, cloud-based HRM software built specifically for Indian startups, IT companies, and digital-first businesses. It’s one of the most trusted and fast-growing HRMS solutions in India, offering a complete suite of tools to manage your workforce efficiently.
✅ Key Features:
- Payroll & compliance (PF, ESI, PT, TDS)
- Leave and attendance tracking
- Performance management & reviews
- Employee onboarding & self-service
- Mobile access & team collaboration tools
Why Choose Clan?
- Tailored for Indian companies and compliance
- Perfect for startups and growing teams
- Cloud-based, secure, and easy to use
- Scalable for businesses of all sizes
👉 Looking for the best HRMS software in India?
3. Keka HR – Excellent UI and Strong Payroll System
Keka is known for its smooth user experience and detailed payroll handling. It’s a favorite among medium-sized tech firms and agencies.
Pros:
- Easy navigation and attractive interface
- Focus on employee experience
- Robust payroll and compliance features
Cons:
- Slight learning curve for non-HR professionals
- Not ideal for tiny teams (pricing starts higher)
4. GreytHR – A Reliable Veteran in Indian HR Tech
Trusted by over 20,000 businesses, GreytHR offers a solid foundation for core HR tasks and has been around for years.
Pros:
- Free plan for small teams
- Payroll, leave, and compliance modules
- Stable and trusted brand
Cons:
- Less customizable for complex workflows
- Dated UI compared to newer platforms
5. Spine HR Suite – Enterprise-Grade HR Management
Spine is better suited for companies looking for advanced features like asset tracking and detailed reports. It’s more of a full-scale ERP module.
Pros:
- Complete HR and admin suite
- Offline and on-premise options available
- Rich analytics and data handling
Cons:
- Not cloud-native or mobile-first
- More suited for larger teams or enterprise setups

Are There Any Good Free HRMS Software Options in India?
Yes — some platforms like Zoho People and GreytHR offer free HRMS software for India-based small teams, usually with basic features for up to 5-10 users.
However, if you’re looking to grow, or need full payroll and compliance automation, consider a scalable option like Clan HRM, which starts affordably and offers far more features from day one.
How to Choose the Best HRMS Software for Your Company
With so many options available, choosing the right HRM software for your business in India can feel overwhelming. Here’s a simple checklist to help you make a smart decision:
1. Understand Your Business Needs
Are you mainly looking for payroll automation? Or do you also need tools for performance management, onboarding, and compliance?
👉 Tip: Make a list of HR processes you want to automate.
2. Look for Indian Compliance Support
Ensure the HRMS software supports Indian labor laws such as:
- Provident Fund (PF)
- Employee State Insurance (ESI)
- Professional Tax (PT)
- Income Tax (TDS)
✅ Tools like Clan HRM are designed with Indian regulations in mind.
3. Consider Team Size & Growth Plans
Some software is great for small teams but may not scale well. Choose a system that can grow with your business.
Look for scalability and flexible pricing plans.
4. Ease of Use & User Experience
Your HR team and employees should find the software easy to use. A cluttered interface means more support and less productivity.
Try platforms with clean dashboards and mobile apps.
5. Data Security & Cloud Access
Make sure your HRMS is cloud-based and follows data privacy standards. This is crucial if your team works remotely or from multiple locations.
Cloud-based tools like Clan ensure you’re secure and accessible from anywhere.
6. Support & Customer Service
Fast, reliable support is a game-changer. Opt for companies with responsive support teams, especially during onboarding and payroll cycles.
Check response time and support reviews before committing.
7. Free Trial or Demo
Always ask for a free trial or demo to see the platform in action. This helps you evaluate usability, features, and how well it fits your team.
Clan HRM offers a free demo to help you decide risk-free.
Ready to Upgrade Your HR Game?
Managing your HR processes manually is costing you time, money, and peace of mind.
Whether you’re a fast-growing startup, an IT firm, or a digital-first business, Clan HRM helps you automate payroll, track attendance, manage performance, and stay compliant — all from one simple platform.
👉 Don’t just take our word for it. Experience it yourself!
- Book a free demo today
- See why businesses across India are switching to Clan HRM
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