Payroll · Buyer guide
Best Payroll service in India (2026)
Payroll in India is two jobs wearing one name. One is the mechanical job of calculating salaries, slips and bank transfers. The other is the compliance job: deducting and depositing TDS on salary, EPF, ESI and professional tax correctly and on time, and filing the returns. Software is excellent at the first job. A qualified professional matters most for the second. This guide ranks the main options on who owns each job so you can pick for your size and risk.
- Two jobs: processing (software is best) and compliance (a professional matters most).
- Rank on ownership: who owns TDS, EPF and ESI accuracy, plus price, automation and review.
- CA-backed, fixed price: Claw Tax has a verified CA own compliance and file, with a reviewer check.
- Software wins on automation: RazorpayX, Zoho, greytHR and Keka lead on self-serve processing and scale.
- Headcount decides: small teams favour a pro-led service; larger teams favour a full platform.
- Watch per-head pricing: software tiers climb as you add employees; a fixed price does not.
01Two jobs: processing and compliance
Before comparing names, split the work. Processing is calculating gross-to-net, generating payslips, and paying salaries. Compliance is deducting TDS on salary under the income tax rules, depositing EPF with EPFO and ESI with ESIC, handling professional tax where it applies, and filing the returns on time.
Dedicated payroll software automates processing brilliantly and also helps with compliance filings. A CA-backed service is built around compliance accuracy, with a professional owning the deductions and returns. Which you need depends on headcount and how much compliance risk you want to carry yourself.
This is a buyer guide, not tax advice
Rates, thresholds and return formats for TDS, EPF, ESI and professional tax change and vary by state. Confirm current rules, and let a qualified professional handle the specifics for your business.
02How we compare payroll options
Rank on four checkable things rather than feature lists.
- Who owns statutory accuracy: your own team using software, or a qualified professional who takes responsibility for the deductions and filings.
- Price transparency: a fixed published price, versus per-employee tiers that climb as you grow or quote-on-enquiry.
- Automation and scale: self-serve processing, employee self-service, leave and attendance, and how many employees it handles comfortably.
- A review step and filing: whether a person checks the numbers and files the returns, or the tool simply generates them for you to file.
Be honest about the trade. For a growing team of fifty or more, dedicated payroll software usually wins on automation and employee self-service. For a small team that wants a professional to own compliance at a fixed price, a CA-backed service usually wins on accuracy and responsibility.
03The main payroll options in 2026
Top pick
Claw Tax
A CA-backed payroll and compliance service where a verified professional owns TDS, EPF and ESI at a fixed, published price.
Strengths
- A verified partner CA (from a network of 300+) runs payroll compliance and files the returns, so a professional owns statutory accuracy.
- Fixed published pricing shown up front, with related accounting and bookkeeping from Rs 2,499 a month, rather than a per-head tier that climbs.
- A separate Claw reviewer checks the numbers before filing, and you get reminders before each deposit and return deadline.
- Sits naturally alongside TDS returns and bookkeeping for a small business that wants one professional across all of it.
Keep in mind
- It is a compliance-led service, not a self-serve payroll app with employee self-service portals and attendance built in.
- For large headcounts that want automation, dedicated payroll software is stronger.
Best for Small and growing businesses that want a professional to own payroll compliance and filings at a price shown up front.
RazorpayX Payroll
Popular self-serve payroll software that automates salaries and compliance payments.
Strengths
- Strong automation for salary disbursal and automatic TDS, PF and ESI payments.
- Good fit for startups already in the Razorpay ecosystem.
Keep in mind
- You and your team run it, so your business owns the inputs and the accuracy.
- Check current per-employee pricing as you scale.
Best for Startups that want automated self-serve payroll with compliance payments handled in-app.
Zoho Payroll
Payroll software that integrates cleanly with the wider Zoho suite.
Strengths
- Solid processing with employee self-service and payslips.
- Tight integration if you already use Zoho Books or People.
Keep in mind
- Self-serve by design; a professional is not included.
Best for Businesses already on Zoho that want integrated payroll.
greytHR
A long-established payroll and HR platform used widely by mid-sized companies.
Strengths
- Mature payroll plus HR, leave and attendance.
- Handles larger headcounts comfortably.
Keep in mind
- More platform than you need for a very small team.
Best for Mid-sized companies wanting payroll and HR in one system.
Keka
A modern HR and payroll platform with strong employee experience features.
Strengths
- Good employee self-service, performance and HR modules.
- Scales with a growing workforce.
Keep in mind
- Priced and built for teams that want full HR, not just payroll.
Best for Growing companies wanting payroll inside a full HR suite.
IndiaFilings
A compliance marketplace that offers payroll alongside tax, GST and ROC services.
Strengths
- Convenient if you want payroll bundled with other compliance.
- Established operator with a wide catalogue.
Keep in mind
- Confirm the plan scope and what the payroll service includes each month.
Best for Businesses wanting payroll bundled with other filings under one vendor.
04Side-by-side comparison
The four criteria in one view. Treat competitor prices as "check current".
| Option | Who owns compliance | Price model | Automation | Best for |
|---|---|---|---|---|
| Claw Tax | Verified partner CA | Fixed, published | Service-led, reviewed | Small teams wanting a pro to own filings |
| RazorpayX Payroll | Your team | Per-employee (check current) | High, self-serve | Automated startup payroll |
| Zoho Payroll | Your team | Per-employee (check current) | High, self-serve | Zoho-based businesses |
| greytHR | Your team | Tiered (check current) | High, payroll + HR | Mid-sized companies |
| Keka | Your team | Tiered (check current) | High, full HR | Growing teams wanting HR too |
| IndiaFilings | Vendor team | Plan-based (check current) | Service-led | Bundled compliance |
05How to choose for your headcount
Size and risk appetite usually decide it.
- Very small team, want a pro to own compliance: a CA-backed service at a fixed price keeps the statutory side accurate without you learning the rules.
- Startup that wants automation: self-serve payroll software like RazorpayX or Zoho automates processing and compliance payments well.
- Fifty or more employees, want HR too: a full platform such as greytHR or Keka handles payroll plus leave, attendance and HR.
- Want everything with one vendor: a marketplace that bundles payroll with tax and GST can simplify your contacts.
Software is best at running payroll. A professional is best at owning whether the TDS, EPF and ESI are right and filed on time. Pick for the job you are most worried about.
06How Claw Tax helps
Claw Tax and Accounts is an online tax, GST and accounting service for India that connects you with a verified chartered accountant at a fixed, published price, with a Claw reviewer checking every filing before it is submitted.
For payroll, Claw Tax sits on the compliance side. A verified partner CA runs the deductions for TDS on salary, EPF, ESI and professional tax, a Claw reviewer checks the numbers before filing, and you get reminders before each deposit and return. The pricing is published, with related bookkeeping and accounting from Rs 2,499 a month, so you see the cost up front rather than a per-head tier that grows. Confirm the current payroll service and price at clawlaw.in/tax.
If you are weighing whether to trust an online service with payroll data, see is it safe to use an online service for payroll. For a related business task, the same question for trademark filing covers the trust checks that apply across online professional services.
07Frequently asked questions
Which is the best payroll service in India?
It depends on what you are solving. For automated processing and employee self-service, dedicated payroll software such as RazorpayX Payroll, Zoho Payroll, greytHR or Keka is strongest, especially as headcount grows. For a small team that wants a qualified professional to own TDS, EPF and ESI compliance and the filings at a fixed price, a CA-backed service like Claw Tax fits better. Rank on who owns compliance, price transparency, automation and whether filings are reviewed.
Do I need payroll software or a payroll service?
Software is best if you want to run payroll yourself with automation and employee self-service. A service is best if you want a professional to own the statutory side so you do not have to track changing TDS, EPF, ESI and professional tax rules. Many small businesses start with a service and move to software as they grow, or use both.
What does payroll compliance in India involve?
It involves deducting and depositing TDS on salary under the income tax rules, EPF contributions with EPFO, ESI with ESIC where applicable, and professional tax where the state levies it, then filing the related returns on time. Rates and thresholds change and professional tax varies by state, which is why accuracy is the hard part, not the arithmetic.
Is a per-employee price cheaper than a fixed price?
For a very small team, a per-employee price can be low, but it climbs as you add people. A fixed published price stays the same and is easier to budget. Compare the all-in cost at your current and expected headcount rather than the headline per-employee rate.
Can one provider handle payroll, TDS returns and bookkeeping?
Yes. A CA-backed service or a compliance marketplace can run payroll, file TDS returns and keep the books, which keeps the numbers consistent across all three. If that matters to you, choose a provider that offers them together and tells you what each monthly fee includes.
Is it safe to share salary data with an online payroll service?
Salary data is sensitive, so check how the provider stores and restricts access to it, who can see it, and how deposits and filings are authorised. A reputable service uses secure access, a defined approval step before filing, and keeps acknowledgements. Treat data handling as a core selection criterion, not an afterthought.