Top 10 Payroll Outsourcing Companies in India (2026)

Payroll outsourcing in India is changing quickly and now goes beyond just processing your salaries. A recent study shows that the Indian payroll outsourcing services market is expected to grow at a CAGR of 5.71% from 2026 to 2034, reaching USD 592.1 million by 2034. Which means payroll is as necessary as filling PF challans to keep your employees engaged, loyal, and paid.
Payroll outsourcing companies are on the rise, employing compliance expertise and secure systems to handle various legal requirements, including PF, TDS, ESIC, PT, LWF, and others. This not only minimizes payroll errors but also supports compliance and eases the burden on HR teams.
In this article, we’ll take a look at the top 10 payroll outsourcing companies in India. We’ll cover their features, the type of businesses they’re best suited for and their pricing to help you choose the right one.

Why Are Indian Companies Choosing Payroll Outsourcing Services?

Indian businesses choose payroll outsourcing services mainly for these 3 reasons:

• Compliance accuracy: Ensuring PF, PT, ESIC, and labour law compliance across different states
• Operational efficiency: Streamlining payroll cycles
• Scalability: Easy handling of growing teams at different locations

Using managed payroll outsourcing services allows HR teams to focus on growing the business instead of handling payroll problems each month.

What Challenges Can You Face When Outsourcing Payroll?

Indeed, payroll companies in India can simplify much of your work, but it also comes with its own set of challenges. If the entire process isn’t managed carefully, companies can face issues that affect compliance, accuracy, and employee trust. Before you choose a payroll management company, understand these challenges to avoid surprises later.

• If you’re hiring payroll agency is hired externally, communication gaps come hand in hand, and delays or misunderstandings become common, especially when employees’ escalation points or service timelines are not clearly defined.
• Payroll outsourcing companies in India store sensitive employee data, including PAN, Aadhaar-linked records, bank details, addresses, and more. Thus, data security is a significant concern; sharing employee data with a third party increases the risk of a data breach if the provider does not follow any strong data protection standards and secure systems.
• During the initial transition, payroll operations can be slow due to system integration. No sync between internal HR, accounting software, and the provider’s automated payroll systems can lead to errors, duplicate work, or reporting gaps.
• Regulatory compliance is another challenge payroll processing companies usually face. Delays in updating minimum wage rates, income tax rules, professional tax, or labour laws can create compliance risks if your payroll agency is not proactive or well-versed in Indian regulations.
• If there is no dedicated payroll specialist, it can lead to operational friction. Without a clear point of contact, resolving payroll queries, compliance clarifications, or urgent issues can become time-consuming.

How to Avoid Payroll Outsourcing Challenges

• You must choose payroll processing companies that have strong expertise in Indian labour and tax laws
• Make sure there’s a dedicated account manager or payroll specialist assigned for your accounts
• Payroll outsourcing companies in India should follow data security standards, such as encryption, access controls, and confidentiality agreements
• Compatibility with your existing HRMS, attendance, and accounting tools
• Although payroll processing companies will handle all employee operations, you must also run parallel payroll cycles during the transition to catch errors early
• Communicate changes clearly to employees to maintain trust and engagement
• Review payroll accuracy and compliance through regular audits and SLA reviews

Top 10 Best Payroll Outsourcing Companies in India

1. TankhaPay

I know juggling multiple tools and vendors at the same time to manage compliance, employees, and payroll can be very stressful. TankhaPay addresses these challenges by streamlining processes.
TankhaPay is one of the best payroll outsourcing companies in India, focused on making things just work. From Payroll to tax filings, attendance and shifts are all managed in one place. Whether your team works remotely, onsite, or across locations, you don’t need multiple tools or vendors to keep everything running smoothly.
Built on Akal Information Systems’ 26+ years of payroll and compliance expertise in India, TankhaPay already supports payroll online services for over 1 million employees. From PF, ESIC, PT to TDS, the platform is designed to ensure statutory filings are right, without constant follow-ups or confusion. For businesses tired of managing multiple vendors and messy processes, TankhaPay feels like the system that outsource payroll was always meant to be.

Pros:

• End-to-end employee payroll services & compliance
• Multilingual platform
• Strong regulatory expertise

Ideal for:

Startups, MSMEs, enterprises, and contract-heavy businesses

Pricing:

₹60 per user per month

2. factoHR

factoHR makes HR and payroll services in India seem a lot less of a headache than they naturally are. Rather than using multiple tools for your different needs, everything runs on a single platform. The factoHR outsource payroll system is easy to use, attendance is automatically tracked, and employee payroll services are constantly updated without HR having to constantly step in.
For teams working from different locations, factoHR’s location-based, contactless attendance system works especially well. With its clean UI, team members can quickly understand payroll services without having to go through lengthy reports.

Pros:

• Cloud-based HR payroll service providers
• Location-based attendance

Ideal for:

• Mid-sized to small business payroll service providers

Pricing:

₹4,999 per month (up to 50 employees)

3. ADP

ADP is another best payroll management companies in India that manages your salary processing, compliance, and simple HR tasks all from one place, so you don’t have to rely on any other. The obligatory functions, such as PF, ESI, PT, and TDS, are handled regularly, so employees do not have to keep chasing the calendar or worry about missing filings. And since it’s a cloud-based solution, employees can easily integrate it with their current systems. Managers, too, can view payroll and workforce information without having to comb through the reports.

Pros:

• Scalable enterprise solution
• Global payroll capabilities

Ideal for:

Large enterprises and MNCs

Pricing:

Custom (on request)

Ideal for:

Mid-sized to small business payroll service providers

Pricing:

₹4,999 per month (up to 50 employees)

4. ZingHR

Without doubt, ZingHR is the best payroll outsourcing service for businesses of large and medium scale. ZingHR teams use the payroll online service to save time by making payroll tasks easy, collecting employee details, and following necessary rules to avoid mistakes.
ZingHR has everything under one roof, which makes it a trusted payroll outsourcing service in India. It smoothly integrates employee and employer data, enabling businesses to manage all their HR needs at once. And since it’s present in India, Singapore, and Australia, ZingHR is perfect for companies with big teams.

Pros:

• AI-driven payroll & HR
• Multi-country presence

Ideal for:

Mid-sized and large enterprises

Pricing:

Custom (on request)

5. Paybooks

Many Indian businesses that want payroll outsourcing service tend to rely on Paybooks. The platform performs payroll processing and calculates taxes, which reduces the amount of work HR teams need to do. The tool also connects well with HRMS systems, enabling attendance and leave details to link directly to payroll without constant monitoring.
Because of Paybooks’ clean setup and fast process, businesses find it easy to shift from manual payroll systems. And using Paybooks frequently improves compliance in business, reduces errors, and provides a payroll system that is easy to handle and more dependable.

Pros:

Quick setup
API-driven payroll

Ideal for:

Small and mid-sized companies

Pricing:

₹2,499 per month (up to 30 employees)

6. HROne

HROne is a cloud-based HR system that makes a significant difference in how businesses manage payroll and HR tasks. One of the things it does is take a huge amount of stress off HR staff by handling all employee records, attendance, leave, compliance, and salary processing for you all in one convenient place. And to make things easier for businesses, they’ve also integrated handy features like flexible shifts, geo-attendance, easy approvals, and mobile self-service, all of which make daily work a whole lot smoother.

Pros:

Real-time analytics
End-to-end HR management

Ideal for:

Mid-sized and large organizations

Pricing:

₹4,950 per month (up to 50 employees)

7. Keka

Keka is a cloud-based HR system that’s a popular choice for companies that are just starting with payroll outsourcing services. From payroll to attendance to hiring and day-to-day HR work, Keka helps reduce manual work and errors vastly. Automated payroll runs and compliance are handled for you, and employees can even log into the system to check their own details without having to bug HR about it all the time. Managing leave and timesheets gets a whole lot easier, too.

Ideal for:

Payroll services for small business

Pricing:

₹9,999 per month (up to 100 employees)

8. Zoho Payroll

Whilst Zoho People allows businesses to bring all HR tasks together in one system. It keeps records for leave, attendance, performance, hiring, and employees in a single space. This reduces manual effort and removes the hassle of keeping data updated.

Ideal for:

Small to mid-sized companies

Pricing:

₹1,250 per month (up to 25 employees)

9. SumHR

SumHR is a cloud-based payroll consultancy services platform built specifically to make life easier for companies when it comes to payroll. It’s all about doing things quickly and following the rules so companies don’t have to waste time on tedious payroll tasks. SumHR automates salary calculations, tax deductions, and all the regulatory bits, while bringing together attendance, leave, performance, and employee details in one neat & simple dashboard. Whether you’re just starting out or a mid-sized company in growth mode, SumHR offers a reliable, flexible, and intuitive payroll outsourcing solution.

Pros:

Automated payroll & compliance
Clean dashboard

Ideal for:

Startups and SMEs

Pricing:

₹69 per user per month

10. Qandle

Last but by no means least, Qandle is a mobile-centric HR platform that’s basically been designed to help you overhaul your payroll outsourcing services. It’s got customizable modules that handle all your payroll processing, compliance, and all the other essential HR tasks, so you can tailor your business processes to your unique workflow. With a user-friendly interface and strong mobile features, both employees and managers can sort out requests and handle all payroll tasks from anywhere, making things way more efficient.

Pros:

• Mobile-friendly payroll
• Customisable modules

Ideal for:

Modern, fast-growing companies

Pricing:

₹2,450 per month (up to 50 employees)

Types of Payroll Services in India

Every business’s requirements are not the same. As payroll requirements grow with workforce size and location, businesses often adopt different payroll service models rather than a single approach. Some may opt for in-house services, while some handover all their tasks to the third-party. These models can be different in terms of scope, control, and responsibility. Below are the 3 types of payroll services commonly used in India.

Payroll Processing Providers

• Payroll processing providers are external experts that take on the complex tasks of calculating salaries, tax deductions, statutory filings, and compliance obligations.
• To ensure that every pay cycle is done correctly and on time with Indian labour laws, these providers invest in their own specialised payroll systems and technology stacks

Why This Matters?

• Good payroll processing companies reduce manual error rates, ensure data security, and give space to HR teams to focus on core business functions.
• Partnering with specialist payroll processing providers allows you to stay compliant, save time, and scale your business without unnecessary payroll headaches.

Payroll Management Services

• Payroll management services contain a broad range of functions, from leave and attendance integration to automated tax filing and real-time reporting.
• To create a centralised system that computes precise payroll cycles each month, a good service partner assists in integrating HRMS data, time and attendance records, and expense reimbursements.

Why This Matters?

It reduces human errors, ensures statutory compliance across states, and gives management real-time insights into workforce costs and trends. Especially for medium- to large-sized organizations, choosing comprehensive payroll management services is essential to scaling payroll operations with accuracy and control.

Payroll Consultancy Services

• Payroll consultancy services are designed for businesses facing complex payroll challenges, whether due to frequent statutory changes, multi-location compliance, or industry-specific requirements.
• Unlike basic outsourcing, payroll consultancy services work alongside your internal teams to analyse existing payroll processes, recommend improvements, and support compliance strategy.

Why This Matters?

• They assist you in determining whether your present payroll configuration complies with legal reporting requirements, tax regulations, and benefits administration.
• Indian labour laws are constantly changing; with payroll consultancies acting as advisors,they reduces companies’ risk, improve payroll accuracy, and fortify internal controls.

How to Choose the Best Payroll Outsourcing Company

Whilst selecting payroll companies, look for:

• A proven record of experience in handling Indian payroll and statutory compliance
• Thorough knowledge of PF, ESI, Professional Tax, TDS, and Indian labour laws
• Transparent pricing with no hidden charges
• Data protection and confidentiality measures
• Potential of integrating with your existing HR and accounting systems
• Dedicated team to support your accounts and midnight questions
• Clear SLAs for turnaround time, accuracy, and compliance laws
• Positive client references or industry credibility
• Scalability to support future growth and workforce changes

Wrapping Up

Payroll outsourcing services in India have now become a necessity rather than a nice-to-have for businesses in 2026. With compliance getting trickier and teams located across different states, it’s no wonder top companies are turning to payroll outsourcing companies, knowing that they will guarantee accurate salary payments, tick all the regulatory boxes, and let them sleep better at night.
Choosing the right payroll outsourcing services means focusing on growing your business upward while experts handle the compliance, accuracy, and payments behind the scenes and take care of everything.
Let’s be honest, with a reliable payroll partner, you can relax and know that you are in good hands.

Frequently Asked Questions