Free HRMS Software for Small Business in India
EzNxt is free HRMS software built for Indian small businesses. Manage employee records, track attendance, process leave, and run performance reviews — all free for up to 10 users. No credit card required.
Why Indian Small Businesses Need HRMS Software
Most Indian small businesses manage HR in ways that create real business risk. Common problems include:
Attendance in Excel spreadsheets
Manual attendance sheets are error-prone, easy to manipulate, and impossible to audit. Late arrivals and half-days go untracked, leading to payroll disputes.
Leave approvals on WhatsApp
Leave requests sent over WhatsApp create no audit trail. There is no record of who approved what, leave balances are unknown, and disputes arise at payroll time.
No central employee records
Employee documents (offer letters, ID proofs, agreements) sit in email inboxes or physical files. When you need them quickly, you cannot find them.
Compliance gaps
Without organised records, statutory compliance (PF, ESI, gratuity eligibility) is difficult to track and easy to miss — creating legal exposure for the business.
EzNxt HRMS Features for Indian Businesses
Employee Database
Central employee records with documents, joining date, designation, department, reporting manager, and contact details — all in one place.
Attendance Tracking
Daily attendance marking with late tracking and overtime logging. Managers can view team attendance in real time without chasing spreadsheets.
Leave Management
Configure leave types (CL, SL, PL, and custom). Employees apply online, managers approve with one click, and leave balances update automatically.
Payroll Basics
Define salary structures with allowances (HRA, travel, special) and deductions. Generate payroll data for your CA to process compliance filing.
Performance Reviews
Set goals for employees, run appraisal cycles, and maintain a documented review history — important for promotion decisions and compliance.
ATS Integration
Hire candidates through the EzNxt ATS and convert them directly to employee records in HRMS. No duplicate data entry when a candidate joins.
How EzNxt HRMS Compares to Other HR Software in India
Enterprise HRMS platforms are priced for large teams. EzNxt is built for the businesses they price out:
| Software | Pricing | Best For |
|---|---|---|
| EzNxt | Free for up to 10 users, then ₹80/user/mo | Small businesses (5–50 employees) |
| Keka | ₹6,999/month for 100 employees | Mid-size companies (100+ employees) |
| Darwinbox | Enterprise pricing (custom quote) | Large enterprises (500+ employees) |
| BambooHR | $5.25/employee/month (approx.) | SMBs, US-focused |
| Zoho People | ₹48/user/month | Small to mid-size businesses |
Prices sourced from respective vendor websites. Subject to change.
EzNxt HRMS: What Is and Is Not Included
Here is exactly what is available now and what is still on the roadmap.
Included in EzNxt HRMS
- Employee records and document storage
- Attendance tracking and overtime
- Leave management with approval workflows
- Performance reviews and goal setting
- Built-in ATS with direct employee conversion
- Connected to CRM and accounting modules
- Basic salary structure configuration
Not Yet in EzNxt
- Statutory compliance filing (PF/ESI portal submission)
- Full payroll processing with salary slips (in development)
- TDS on salary computation and filing
- Biometric device integration
For compliance filing, EzNxt provides structured payroll data your CA can use. Full payroll is on the roadmap.
Indian Labour Law Compliance: What HRMS Tracks for You
India has multiple labour laws that govern how businesses manage their employees. HRMS software organises the data that compliance requires — though actual legal advice should come from your HR consultant or CA.
Shops & Establishments Act
Governs working hours, overtime, and weekly off for commercial establishments. HRMS attendance records support compliance documentation for labour inspections and audits.
Maternity Benefit Act
26 weeks of paid maternity leave is mandated for female employees. HRMS manages the maternity leave type, tracks leave balance, and maintains the record of leave taken — eliminating disputes at payroll time.
Minimum Wages Act
State governments revise minimum wages periodically. HRMS salary structures must be updated to reflect current minimums for each state and category of employee to avoid underpayment violations.
Gratuity Act
Employees who complete 5 continuous years of service become eligible for gratuity. HRMS tracks each employee's tenure precisely, so you can calculate and plan for gratuity obligations without surprises.
Prevention of Sexual Harassment (POSH)
Organisations with 10 or more employees must constitute an Internal Complaints Committee. HRMS maintains employee records that support POSH compliance documentation.
Note: HRMS organises the data; actual compliance advice comes from your legal or HR consultant.
The Indian Startup HR Journey: From 5 to 50 Employees
Every growing Indian business goes through the same HR inflection points. Here is where informal systems break down and structured HRMS becomes necessary:
5 employees
You are the HR. Offer letters are in Word, attendance is tracked on WhatsApp, and leave is approved over chat. It works, barely — mostly because everyone knows everyone.
10 employees
One person misses a shift and you don't find out for three days. Leave balance disputes start at month-end. Payroll takes half a day of manual calculation. This is the HRMS threshold.
20 employees
PF registration is now mandatory (triggered at 20 employees). You need structured salary data. Manual payroll takes a full working day and errors are common.
30+ employees
Multiple teams, some remote employees, and managers who can't see their team's leave status without calling HR. Central HRMS is no longer optional — it's a prerequisite for functioning.
50+ employees
A dedicated HR person is now needed. They need a system — not a spreadsheet — to handle onboarding, appraisals, exits, and compliance documentation across the organisation.
HRMS vs Payroll Software vs ERP: Which Does an Indian SME Need?
Indian SME owners are often confused by overlapping software categories. Here is what each type does and which businesses genuinely need it:
| Type | What It Covers | Best For |
|---|---|---|
| HRMS | Employee records, attendance, leave, performance | Most SMEs (5–100 employees) |
| Payroll Software (e.g., GreytHR, RazorpayX) | Salary calculation, PF/ESI/TDS filing, payslips | Businesses prioritising compliance automation |
| ERP (e.g., SAP, Oracle) | Enterprise suite: manufacturing, inventory, finance, HR | Large enterprises (500+ employees) |
| EzNxt | HRMS + CRM + Accounting + Projects in one | SMEs with 5–100 employees needing integrated tools |
For most Indian SMEs with 5–100 employees, an HRMS that covers attendance, leave, and employee records is the right starting point. Add dedicated payroll software when you have a high volume of statutory filings to automate.
Frequently Asked Questions: Free HRMS Software India
Is EzNxt HRMS software free in India?
Yes. EzNxt HRMS is completely free for Indian small businesses with up to 10 users. Employee records, attendance tracking, leave management, and performance reviews are all included at no cost. For teams above 10 users, EzNxt charges ₹80/user/month.
Does EzNxt HRMS support Indian payroll compliance?
EzNxt HRMS supports basic salary structures with allowances and deductions. Full statutory payroll compliance (PF/ESI filing, TDS on salary) is in development. For now, EzNxt provides payroll data that your CA can use for compliance filing.
Can EzNxt replace Keka or Darwinbox for a small business?
For small businesses with 5-50 employees, EzNxt can replace most of what Keka or Darwinbox offer at far lower cost — employee records, attendance, leave, and performance management. Keka and Darwinbox are designed for 100-1000+ employee companies and charge accordingly.
Does EzNxt HRMS integrate with recruitment?
Yes. EzNxt includes a built-in ATS (Applicant Tracking System). When you hire a candidate through the ATS, they can be directly converted to an employee record in HRMS — no data re-entry required.
Is HRMS mandatory for Indian companies?
There's no law that mandates specific HRMS software. However, Indian labour laws require businesses to maintain employee records (under the Shops & Establishments Act, Factories Act, etc.), track leaves, and document attendance. HRMS makes compliance with these requirements easier and audit-ready. Companies with 20+ employees who have PF obligations especially benefit from structured HR records.
How does HRMS help with PF and ESI in India?
HRMS maintains the employee salary structures and attendance data needed for PF and ESI calculation. EzNxt HRMS tracks basic wages (for PF calculation at 12% on ₹15,000 or actual basic), ESI eligibility based on gross salary (≤₹21,000/month), and generates data summaries. Your CA or payroll processor uses this data to generate PF/ESI challans and file returns.
What is the difference between GreytHR and EzNxt HRMS?
GreytHR is a dedicated payroll and compliance tool that handles PF/ESI/TDS statutory filing end-to-end — it's best for businesses that primarily need payroll automation. EzNxt HRMS is part of a broader business platform (also including CRM, Accounting, and Projects) and handles attendance, leave, employee records, and performance. EzNxt doesn't yet do direct statutory PF/ESI filing (that feature is in development).
Can HRMS software handle remote employees in India?
Yes. EzNxt HRMS is entirely cloud-based, so remote employees can mark attendance, apply for leave, and access their records from anywhere in India. Managers can approve leave requests from their browser or phone. This makes it particularly useful for companies with distributed teams across multiple cities or states.
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Free HRMS for up to 10 users. Employee records, attendance, leave, and performance — all in one place.
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