---
title: "HR Software for Small Business, from 2 People | LekhaHR"
description: "HR software for small business and startups, from two people: records, attendance, leave and payroll, per employee, per month, no minimum."
canonical: https://lekhahr.in/hr-software-small-business/
last_updated: 2026-09-30
---
HR software for small business and startups · from two people upward

# HR software for a company of two, five **or fifty.**

Records, attendance, leave and payroll for a small team, priced per employee, per month, no minimum. It grows with you, and so do the rules: this page shows which duties start at each headcount, and what LekhaHR costs at that size.

[Request an invite](https://lekhahr.in/request-invite/) See the duties by headcount

## LekhaHR's monthly bill at three team sizes

### One team, three sizes

Operations · a month · billed annually · GST extra

- **3 people**: ₹237

because 3 × ₹79

- **25 people**: ₹1,975

because 25 × ₹79

- **60 people**: ₹3,900

because 25 × ₹79 + 25 × ₹59 + 10 × ₹45

No base fee and no minimum. Each rate covers only the people inside its band.

No minimum₹0 base fee

No. 01

Set up in four steps

---

because a small team's HR usually starts as one person's evening, not a project.

## From a people spreadsheet to a working HR system, in four steps.

Meenal sets up Paiteq herself: company, policies, people, invites. Each policy starts from a template she can change, and every setting carries the date it takes effect.

### Policies from a template

Weekly offs, leave types and holidays start filled in. Change any value; the date it takes effect is kept.

### Any role, any module

Give the office manager attendance and leave without payroll. Roles reach only what you grant.

### Everyone gets their own record

Each person sees their payslips, balances and requests in the browser, on a computer or a phone. Works today in the phone's browser; a native mobile app is coming soon.

No. 02

The growth ruler

---

because a duty you learn about in the month you cross a threshold is a duty you are already late on.

## What HR compliance applies to a small business in India?

From the first employee: a wage slip every pay period, final wages within 2 working days of an exit, and Shops and Establishments registration and professional tax where your state requires them. At 10 people, ESI, gratuity, maternity benefit and a PoSH committee start; at 20, EPF and statutory bonus; at 50, a crèche.

1. No. 2.1 · from the first hire
   ### From your first employee
   The paperwork starts with one person on the payroll, not at a headcount.
   Starts here
   - An appointment letter (good practice; required by law at 10+ workers)
      OSH Code, 2020, s.6(1)(f) · in force 21 Nov 2025
   - A wage slip every pay period
      Code on Wages, 2019, s.50 · in force 21 Nov 2025
   - Final wages within 2 working days of an exit
      Code on Wages, 2019, s.17(2) · in force 21 Nov 2025
   - Professional tax, where your state levies it
      Capped at ₹2,500 a person a year. Several states levy none.
      Constitution, Art. 276(2) · cap since 20 Dec 1988 · set by each state
   - Shops and Establishments registration
      When it applies is set by the state your office is in.
      your state's Shops and Establishments Act · check your state · threshold varies
   - A privacy notice for employee data
      Employment is a legitimate use (s.7(i)), so no consent form is needed. A plain privacy notice is still the right practice.
      DPDP Act, 2023, s.7(i) · main duties from 13 May 2027
- **LekhaHR at 3 people**: ₹237 a month
- because 3 × ₹79, Operations, billed annually, GST extra
2. No. 2.2 · at 10
   ### At 10 people
   Social security, the Internal Committee and appointment letters arrive together.
   Starts here
   - ESI, where the scheme is implemented
      Covers employees on Code wages up to ₹21,000 a month.
      Code on Social Security, 2020 · in force 21 Nov 2025
   - Gratuity
      Once it applies, it keeps applying if the team gets smaller. The 5 years of service is waived on death or disablement.
      Code on Social Security, 2020 · in force 21 Nov 2025
   - Maternity benefit
      Up to 26 weeks of paid maternity leave for an eligible employee (12 weeks from the third child).
      Code on Social Security, 2020, Chapter VI · in force 21 Nov 2025
   - Appointment letters for every employee
      Required once you have 10 or more workers (OSH Code s.6(1)(f)); existing staff were due theirs by 21 Feb 2026. Good practice from the first hire, and some state Shops Acts ask for one.
      OSH Code, 2020, s.6(1)(f) · in force 21 Nov 2025
   - A PoSH Internal Committee, and its annual report
      Employees of any gender count towards the number.
      PoSH Act, 2013, s.4 and s.21 · in force 9 Dec 2013
   - Shops and Establishments registration in Maharashtra
      Maharashtra registers at 10 or more workers; smaller offices give an intimation.
      Maharashtra Shops and Establishments Act, 2017 · in force 19 Dec 2017 · one state's rule
- **LekhaHR at 10 people**: ₹790 a month
- because 10 × ₹79, Operations, billed annually, GST extra
3. No. 2.3 · at 20
   ### At 20 people
   Provident fund and statutory bonus.
   Starts here
   - EPF
      Compulsory for employees on PF wages up to the ceiling: ₹15,000 until 16 Sep 2026, ₹25,000 from 17 Sep 2026.
      Code on Social Security, 2020 · in force 21 Nov 2025
   - Statutory bonus
      For establishments with 20 or more people on any day of the accounting year, paid to employees within the Code's bonus wage limit.
      Code on Wages, 2019 · in force 21 Nov 2025
- **LekhaHR at 20 people**: ₹1,580 a month
- because 20 × ₹79, Operations, billed annually, GST extra
4. No. 2.4 · at 50
   ### At 50 people
   A crèche, on your own or shared with nearby employers.
   Starts here
   - A crèche facility
      Alone or as a common facility within the prescribed distance.
      Code on Social Security, 2020, s.67 · in force 21 Nov 2025
- **LekhaHR at 50 people**: ₹3,450 a month
- because 25 × ₹79 + 25 × ₹59, Operations, billed annually, GST extra

Bills are Operations rates from the pricing table, before GST.

Labour Codes in force 21 Nov 2025, Central Rules notified 8 May 2026 · checked by the LekhaHR team, 30 Sep 2026 · not legal advice

LekhaHR keeps the records these duties draw on: letters and documents on each person's record, wage slips from every payroll run, PF, ESI and PT worked out line by line, and F&F on the exit. It does not file returns or deposit dues; you or your accountant do that. Thresholds such as ESI coverage also depend on where you operate, so confirm your state's position. To check one person's contributions, try the [EPF calculator](https://lekhahr.in/tools/pf-calculator/) and the [ESI calculator on Code wages](https://lekhahr.in/tools/esi-calculator/), or see how [LekhaHR payroll works out PF, ESI, PT and TDS](https://lekhahr.in/payroll-software/).

No. 03

What it costs at each size

---

because a discount that switches on at a headcount can make one more hire cost less than none. Bands never do.

## What does HR software for a 5-person company cost?

On LekhaHR, a 5-person company pays ₹395 a month on Operations, billed annually, before GST: 5 people at ₹79 each, with no minimum and no base fee. The bill grows one person at a time and never drops when you hire, because each rate covers only the people inside its band.

1. 1–25 people ₹79OperationsBusiness₹119
2. 26–50 ₹59OperationsBusiness₹99
3. 51–100 ₹45OperationsBusiness₹79
4. 101 and up ₹39OperationsBusiness₹69

1. **No fixed minimum.** Some Indian HRMS plans charge a flat monthly fee or bill a minimum band of 25 to 50 employees, so a small team pays for seats it has not filled. LekhaHR bills only the people you have: 5 employees on Operations cost ₹395 a month on annual billing, before GST.
2. **Rates fall as you grow.** LekhaHR's bands work like tax slabs: each rate applies only to the people inside its band, from ₹79 for the first 25 down to ₹39 past 100. Hiring one more person adds one line at that band's rate and never raises the rate for everyone else.
3. **One platform, one record.** Employee records, attendance, leave, payroll, onboarding and exits run on one record per person in LekhaHR, with no separate tools to connect and no per-module add-ons. Both plans include all of them.

**LekhaHR monthly bill by team size: annual billing, before GST. Each cell shows the month's total and the average per employee.**

| Plan | 5 employees | 10 employees | 25 employees | 50 employees | 100 employees |
| --- | --- | --- | --- | --- | --- |
| Operations a month · per employee | ₹395 ₹79 each | ₹790 ₹79 each | ₹1,975 ₹79 each | ₹3,450 ₹69 each | ₹5,700 ₹57 each |
| Business a month · per employee | ₹595 ₹119 each | ₹1,190 ₹119 each | ₹2,975 ₹119 each | ₹5,450 ₹109 each | ₹9,400 ₹94 each |

Updated 30 Sep 2026

LekhaHR Operations: ₹79 per employee per month on annual billing for the first 25 employees, then ₹59, ₹45 and ₹39 a person in the higher bands, with no minimum and no base fee; GST extra. Business is ₹119 per employee for the first 25 on the same terms, and monthly billing adds ₹20 per employee in every band.

[Work out your bill on the pricing page](https://lekhahr.in/pricing/) [Compare every vendor's published plans at 5, 25 and 100](https://lekhahr.in/hr-software-pricing-india/) [How to choose HR software for a small business](https://lekhahr.in/best-hr-software-india/)

No. 04

From a spreadsheet

---

because the sheet you already keep is the fastest way in, as long as nothing in it is guessed.

## When should a small business move HR out of a spreadsheet?

When nobody can explain a leave balance, a correction overwrites the original, approvals live in a chat group, or leave and attendance are re-keyed into the salary sheet each month. For many teams that happens between 10 and 20 people, which is also where ESI, gratuity and EPF begin. Bring the sheet with you.

- 4.1 **Nobody can explain a leave balance.** Two people read the same row and get different numbers.
- 4.2 **A correction overwrites the original.** The first value and who approved the change are gone.
- 4.3 **Approvals live in chat.** A yes in a group chat is not on anyone's record.
- 4.4 **Payroll inputs are typed twice.** Leave and attendance are re-keyed into the salary sheet each month.

because Priya's "Leave left" cell holds a note, not a number, so it waits for a decision instead of being guessed.

No. 05

Written for you if

---

because the right tool for your team matters more than one more invite.

## Who LekhaHR is written for, and who it isn't.

Written for you if

### A small team whose HR still lives in a sheet.

- You have from 2 to a few hundred people, and one person runs HR alongside another job.
- You want each leave balance, day and payslip line explained, not just shown.
- You would rather not pay a 50-person minimum for a 5-person team.

An honest note

### When LekhaHR isn't the right choice

- You need biometric or face-recognition devices wired into attendance.
- Your staff work offline for days before they reconnect.
- You want a provider to file returns and deposit PF and ESI for you.

No. 06

Questions

---

Statutory answers carry the date the law took effect. Prices carry their working.

## What small teams and startups ask before they move HR out of a spreadsheet.

### What is HR software for a small business or startup?

It keeps one record for each person and runs the routine work against it: attendance, leave, payroll, approvals and self-service. For a startup it starts with the first hire. It replaces the spreadsheet, the chat group and the re-typing between them, so every balance or payslip line can be explained from its record.

### When does a small team need HR software instead of a spreadsheet?

A sheet works while a few people share one office and nobody needs to know who changed what. You have outgrown it when nobody can explain a leave balance, a correction overwrites the original, or approvals live in chat. For many teams that happens between 10 and 20 people, which is also where ESI, gratuity and EPF begin.

### What is the cheapest HR software in India for a small team?

It depends on headcount. Some plans charge a flat fee covering 25 or 50 employees, so a five-person team pays for the whole band, and a free tier may leave out people or modules you need. Compare the monthly bill at your headcount. LekhaHR has no minimum: five people cost ₹395 a month on Operations, annual billing, before GST.

### How much does LekhaHR cost for a small team?

It is priced per employee a month with no base fee and no minimum headcount. On Operations, billed annually, 3 people come to ₹237 a month, 10 people to ₹790 and 50 people to ₹3,450. GST at 18% is added and shown separately.

### Is there a free plan?

No. LekhaHR is available by invitation, so there is no free plan and no self-serve trial. Each team is billed per active employee a month, with GST shown separately. Request an invite with your team size and the tool you use now, and a person replies by email.

### Which statutory duties start as a small team grows?

From the first employee: Shops and Establishments registration and professional tax where your state requires them, a wage slip every pay period, and final wages within 2 working days of an exit under the Code on Wages (in force 21 Nov 2025). At 10: ESI where implemented, gratuity, maternity benefit, a PoSH Internal Committee and appointment letters. At 20: EPF and statutory bonus. At 50: a crèche.

### Can a founder run HR without an HR hire?

At a small size, yes. A founder or an operations lead can run records, attendance, leave and payroll in LekhaHR, and hand parts of it to others with a role that reaches only those modules. As the team grows, someone will need to own HR policy; LekhaHR gives them a clean record to inherit.

### When is LekhaHR the wrong choice?

When you need biometric or face-recognition devices wired into attendance, when staff work offline for days before they reconnect, or when you want a provider to file returns and deposit PF and ESI for you. In those cases a tool built around devices, offline use or managed payroll will suit you better.

No. 07 · By invitation

## Start with the team you have today.

because the bill is sized to your team, from two people. We reply to every request by email.

[Request an invite](https://lekhahr.in/request-invite/) [Switching from Keka or greytHR](https://lekhahr.in/switch-from-keka/) [Why LekhaHR is built for small teams](https://lekhahr.in/about/)
