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HR software for small business and startups · from two people upward

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

LekhaHR is HR and payroll software for small Indian teams: ₹99 per employee a month, billed monthly, no minimum, GST extra. Records, attendance, leave and payroll for a team of two, five or fifty, with a 30-day free trial and no card needed. Below: the legal duties that start at each headcount, and the LekhaHR bill at that size.

from

₹59 per employee a month

₹99 for the first 25 · ₹79 for 26–50 · ₹65 for 51–100 · ₹59 from 101 · billed monthly · GST extra · no minimum

Everything included

  • People records
  • Attendance and punch
  • Leave
  • Payroll with PF, ESI, PT and TDS
  • Payslips
  • Onboarding and exits, F&F
  • Letters
  • Approvals

No add-ons · no setup fee · no minimum

5 people: ₹495 a month on Operations, before GST, payroll included.

30-day free trial, no card needed

LekhaHR's monthly bill at three team sizes

One team, three sizes

Operations · a month · billed monthly · GST extra

3 people
₹297

because 3 × ₹99

25 people
₹2,475

because 25 × ₹99

60 people
₹5,100

because 25 × ₹99 + 25 × ₹79 + 10 × ₹65

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

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.

Paiteq Technologies/ Set up

Set up Paiteq

2 of 4 done · 1 row waits for you

  1. CompanyName, office, weekly offs and the pay monthDone
  2. PoliciesAttendance, leave types and holidays, each from a starting templateDone
  3. PeopleFirst batch: 5 of 42 rows from paiteq_people.xlsx, 1 waiting for a decisionIn progress
  4. InviteEach person gets a link to their own recordNext
Design preview · sample data

No. 02

The growth ruler

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, as good practice

      Required by law once you have 10 or more workers (see At 10 people). Writing one from the first hire means nobody needs a back-dated letter later.

      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

      Employees read a privacy notice before entering PAN or bank details. It explains what is held, why, who can see it and how long it is kept; the record keeps the notice version and acknowledgement.

      LekhaHR employee privacy notice · shown before PAN or bank details

    LekhaHR at 3 people
    ₹297 a month
    because 3 × ₹99, Operations, billed monthly, 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, and fixed-term employees qualify after one year.

      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 if she already has two or more surviving children). For an employee covered by ESI, ESIC pays the benefit, not you.

      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)); staff already on the rolls on 21 Nov 2025 were due theirs by 21 Feb 2026. Good practice from the first hire.

      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
    ₹990 a month
    because 10 × ₹99, Operations, billed monthly, GST extra
  3. No. 2.3 · at 20

    At 20 people

    Provident fund and statutory bonus.

    Starts here

    • EPF

      Compulsory for every employee whose PF wages are within the ceiling when they join (₹15,000 until 16 Sep 2026, ₹25,000 from 17 Sep 2026), and for anyone who is already an EPF member, whatever their pay.

      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
    ₹1,980 a month
    because 20 × ₹99, Operations, billed monthly, 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
    ₹4,450 a month
    because 25 × ₹99 + 25 × ₹79, Operations, billed monthly, 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 and the ESI calculator on Code wages, or see how LekhaHR payroll works out PF, ESI, PT and TDS.

No. 03

What it costs at each size

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

On LekhaHR, a 5-person company pays ₹495 a month on Operations, billed monthly, before GST: 5 people at ₹99 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₹99OperationsBusiness₹139
  2. 26–50₹79OperationsBusiness₹119
  3. 51–100₹65OperationsBusiness₹99
  4. 101 and up₹59OperationsBusiness₹89
  1. No fixed minimum. Several Indian HRMS plans charge a flat monthly fee that covers the first 25 or 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 ₹495 a month, billed monthly, 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 ₹99 for the first 25 down to ₹59 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: monthly billing, before GST. Each cell shows the month's total and the average per employee.
Plan5 employees10 employees25 employees50 employees100 employees
Operationsa month · per employee₹495₹99 each₹990₹99 each₹2,475₹99 each₹4,450₹89 each₹7,700₹77 each
Businessa month · per employee₹695₹139 each₹1,390₹139 each₹3,475₹139 each₹6,450₹129 each₹11,400₹114 each

Updated

LekhaHR Operations: ₹99 per employee a month, billed monthly, for the first 25 employees, then ₹79, ₹65 and ₹59 a person in the higher bands, with no minimum and no base fee; GST extra. Business is ₹139 per employee for the first 25 on the same terms, and every team starts with a 30-day free trial, no card needed.

No. 04

From a spreadsheet

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.

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

paiteq_people.xlsx · first batch, 5 of 42 rows

LekhaHR fields

Name maps to
Full namematched
Joined on maps to
Date of joining
Reports to maps to
Manager
PAN maps to
PAN
Leave left maps to
Earned leave, opening1 row to review

Design preview · sample data · Paiteq Technologies

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

No. 05

Free or paid

Is a free tool enough for a small team, and where does it stop?

A spreadsheet, a free template or a free edition covers a small team while the facts are few and one person keeps them. It stops when someone has to explain a number months later, when two people edit the same sheet, or when attendance and leave have to reach payroll without being typed again.

What free tools do well

  • A monthly attendance sheet template counts present, absent and half days for a few people.
  • A leave tracker in Excel keeps balances while one person updates it and nobody disputes a row.
  • A salary sheet with formulas works out gross and net when salaries are fixed and nobody joins mid-month.
  • Free editions of HR or payroll software cover a set headcount or a set of modules at no cost.

Where they stop

  • A sheet keeps the latest value, not the history: a correction overwrites the original and who approved it.
  • Approvals happen in chat, so a balance can't be traced to a decision.
  • Attendance and leave are re-typed into the salary sheet each month, and PF, ESI and PT are typed in by hand.
  • Free editions usually cap the headcount, or leave out attendance or payroll, so the move comes at the size where it is hardest.

Stay on the templates if you have two or three people on fixed salaries and an accountant runs payroll; they are free and need no sign-up. Move when the signs in No. 04 appear. LekhaHR has no free plan: it is priced per active employee from the first person, so the bill for your headcount is on the pricing page.

No. 06

Starting up?

How should a startup run HR from 2 to 50 people?

At 2 to 5 people the founder runs HR. Between 6 and 20 someone becomes the first HR owner, and ESI, gratuity and a PoSH committee begin at 10. From 21 to 50, EPF and bonus apply and managers approve their own teams. LekhaHR works out the figures; you or your accountant file and pay.

No. 6.1 · 2 to 5 people

The first hires

The founder runs HR, usually in the evening.

  • Give each new person an appointment letter and a wage slip every pay period from the first month.
  • Write the leave policy, weekly offs and holidays down once, so nobody counts them by hand later.
  • Keep one record per person: date of joining, PAN, bank account, salary structure.

Operations: ₹198 a month at 2 people, ₹495 at 5, billed monthly, GST extra.

No. 6.2 · 6 to 20 people

The first HR owner

An office manager or operations lead takes attendance and leave; payroll often stays with the founder.

  • At 10 people, ESI (where implemented), gratuity, maternity benefit and a PoSH Internal Committee begin. Set them up before the 10th joiner, not after.
  • Give the HR owner a role that reaches attendance and leave only, and keep payroll with the person who approves it.
  • Plan EPF registration before you reach 20, since it applies from that headcount.

Operations: ₹990 a month at 10 people, ₹1,980 at 20, billed monthly, GST extra.

No. 6.3 · 21 to 50 people

Growth

Managers approve their own teams; one person owns HR policy.

  • EPF and statutory bonus apply. LekhaHR works out PF on PF wages, capped at the ceiling in force on each day (September 2026 splits at the 17th), or on actual wages if your company contributes on them.
  • Route leave and regularisations to each person's manager, with the founder only on exceptions.
  • Move to Business when you start running reviews, expense claims or timesheets; above 25 people every extra person costs less on either plan.

Operations: ₹2,870 a month at 30 people, ₹4,450 at 50, billed monthly, GST extra.

Who does what: founder, office manager and accountant

How month-end HR work splits between the founder, the office manager, LekhaHR and the accountant
TaskWhoIn LekhaHR
Employee records, policies and approvalsFounder or office managerOne record per person; every change keeps who, when and why.
Attendance and leave, day to dayOffice manager, on a role that reaches only those modulesDay status, balances and regularisations, each with its reason.
Running and approving payrollFounderReads days and leave from the record, then locks the month's register.
PF, ESI, PT and TDS figuresWorked out by LekhaHRPF and ESI on Code wages, PT by your state's slab and TDS on taxable salary, line by line on each payslip; at year end, the salary figures for Form 130 (earlier Form 16), which you download from TRACES.
Payslips, salary register and bank fileMade by LekhaHRFrom the locked register, so every copy agrees.
Filing returns and paying PF, ESI, PT and TDSYour accountant, or youNot done by LekhaHR. Give your accountant a role that reaches payroll reports only.

From a new joiner to their first payslip

  1. 6.4Offer and appointment letter. Send the offer, then the appointment letter on the first day. See the appointment letter format.
  2. 6.5The person's record. Date of joining, PAN, bank account, UAN if they had PF before, and the state they work in (for PT).
  3. 6.6Policies and shift. Attach the leave policy, weekly offs, holiday list and shift to the person, so their days and balances are counted from the first punch.
  4. 6.7Self-service invite. They punch in from a phone or computer, see their balances and check their own details before payroll.
  5. 6.8Salary structure. Components entered monthly; the first month is prorated from the joining date on paid days.
  6. 6.9Tax declaration. They declare their regime and investments on Form 124 (earlier Form 12BB), so TDS starts right.
  7. 6.10First payroll. Days and leave flow in at the cutoff; PF, ESI and PT apply where your headcount and their wages bring them in. Lock, and the payslip is issued. See how LekhaHR payroll works out each line.

The onboarding checklist, letters and documents sit on the person's record; see how onboarding and exits work.

No. 07

The first month

A first-month setup checklist for a small team.

Week one sets the company and its policies, week two brings in people and opening balances, week three invites everyone and hands out roles, and week four runs the first payroll. Each step can be checked before the next one starts.

Week 1

Company and policies

  • Company details, office locations and the state each person works in.
  • Pay cycle and payroll cutoff date.
  • Leave types, weekly offs and the holiday list, from templates.
  • Shifts, grace time and the geofence for each office.

Week 2

People and balances

  • Bring your people sheet and map its columns once.
  • Review only the rows LekhaHR flags.
  • Enter opening leave balances as at your start date.
  • Salary structures, statutory numbers and bank accounts.

Week 3

Invites and roles

  • Invite everyone to self-service; they confirm their own details.
  • Give the office manager attendance and leave; give your accountant payroll reports.
  • Approve the first leave requests and regularisations in LekhaHR, not in chat.

Week 4

First payroll

  • Read the month's days and leave at the cutoff.
  • Review the register: every line shows its reason.
  • Lock, issue payslips and download the bank file.
  • Hand the PF, ESI, PT and TDS figures to whoever files.

Coming from Keka or greytHR rather than a sheet? Bring your people export, map its columns once, and run one month side by side before you switch: Keka alternative, or greytHR alternative. For the payroll step itself, see payroll with PF, ESI, PT and TDS worked out.

No. 08

Written for you if

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 pay for the 5 people you have than for a flat fee or a minimum headcount.

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. 09

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 the best HR software for a small business in India?

The best fit is the one whose attendance and leave feed payroll directly, works out PF and ESI on Code wages and PT and TDS on each payslip, and bills only the people you have. Check four things before you choose: the monthly bill at your headcount (not the rate on a 50-person example), whether PF follows the EPF wage ceiling of ₹25,000 from 17 Sep 2026, whether an office manager can run attendance without seeing salaries, and whether an exit's F&F is worked out and tracked against the 2 working days the Code on Wages allows. LekhaHR is built for all four, from two people upward.

Do I need to register for PF and ESI with 5 employees?

No. At 5 employees neither is compulsory. ESI becomes compulsory at 10 employees in areas where the scheme is implemented, for employees on Code wages up to ₹21,000 a month. EPF becomes compulsory at 20 employees; below that you can join voluntarily. What can apply from the first employee is professional tax and Shops and Establishments registration, depending on your state, plus a wage slip every pay period.

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

When a leave balance needs explaining, a correction must keep the original, or approvals live in chat. A sheet still works while a few people share one office, salaries are fixed and one person keeps it.

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

The one with the lowest monthly bill at your headcount, which is not always the lowest per-employee rate. A plan with a flat monthly fee or a minimum headcount charges a five-person team for seats it has not filled, and a free tier may leave out attendance or payroll. Compare bills on the same billing cadence, with GST as each vendor publishes it. LekhaHR has no minimum: five people cost ₹495 a month on Operations, billed monthly, before GST.

How much does LekhaHR cost for 2, 5, 10 or 20 employees?

On Operations, billed monthly, 2 people cost ₹198 a month, 5 cost ₹495, 10 cost ₹990 and 20 cost ₹1,980; 50 people cost ₹4,450. There is no base fee and no minimum headcount, and GST at 18% is added and shown separately.

Which LekhaHR plan does a small business need?

Operations, unless you run performance reviews, expense claims or timesheets. Operations covers employee records, attendance, leave, payroll, onboarding and exits, approvals and reports. Business adds performance, expenses, timesheets, multi-step approval chains and the API, at ₹139 instead of ₹99 a person for the first 25, billed monthly.

Is there free HR software for a small business in India?

Yes, several free editions exist, and each one leaves something out. As reviewed on 19 Oct 2026: Zoho People is free for up to 5 users, without attendance; Zoho Payroll is free for up to 10 employees, payroll only; Kredily's free plan allows one leave and attendance rule and one salary structure; and factoHR is free for up to 20 employees for records, letters and payslips. For two or three people on fixed salaries, with an accountant running payroll, a free edition or a monthly attendance sheet and leave tracker is often enough. It stops being enough when balances need explaining, corrections must keep the original, approvals happen in chat, or attendance is re-typed into the salary sheet.

Does LekhaHR have a free plan or trial?

There is no free plan, but every team starts with a 30-day free trial, with no card needed. After it, each team is billed per active employee a month, with GST shown separately.

Who does what between the founder and the accountant?

The founder or an office manager keeps records, policies and approvals, and the founder approves payroll. LekhaHR works out PF, ESI, PT and TDS line by line, makes payslips, the salary register and the bank file, and gives the salary figures for Form 130 (earlier Form 16), which you download from TRACES. The accountant, or you, files returns and pays the dues; LekhaHR does not file or deposit.

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?

Yes, at a small size. 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: attendance and leave to the office manager, payroll reports to the accountant. Once someone has to own HR policy full time, they inherit one record per person with every change and its reason.

My managers don't approve leave on time. Does it just go through?

No. Leave never approves itself; it waits for a person. Reminders go by email and in-app. If a manager is away, you can delegate their approvals or reroute a request, and the change is recorded.

I'm the only admin. Can I run payroll without a second approver?

Yes. In solo mode you lock the month yourself, after you sign in again to confirm it. Reopening a locked month creates a numbered revision, so the first version is kept.

When someone leaves, how do I avoid a dispute over their last payment?

LekhaHR freezes their attendance and leave as of the last working day and builds one F&F statement: salary to that date, leave encashment, notice pay or recovery, gratuity where due, and TDS. It tracks the 2-working-day deadline. Relieving and experience letters are never held back for clearance.

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. 10 · 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.