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You run a small startup, so your HR work is still manual. Spreadsheets track new hires, and you calculate payroll by hand. That works for 5 to 20 people. As you hire more, these manual steps begin to produce errors.
A simple HR platform takes that load off you. It centralizes employee records, syncs attendance data, and handles hiring in one place. You spend less time on admin and more time on growth.
Budgets are tight at this stage, so many SMEs hold off on buying HR software. To help you, we compared the 10 best free HR software options available in India. This list covers free plans, India compliance support, and ratings on G2 and Capterra. We evaluated every platform against the same criteria for a fair comparison.
How We Evaluated the Top 10 Free HR Software in India (2026)
We reviewed and shortlisted the 10 best free or open-source options for small teams. We scored each platform against 8 practical criteria that matter to Indian SMEs, from statutory compliance to the mobile experience and the integrations that cut manual HR work.
8 Evaluation Criteria
- Attendance and leave automation: Biometric or geo-fence options, shift rules and policy-based leave accruals.
- Mobile-first experience: Android and iOS apps for field staff and remote teams.
- Policy and workflow flexibility: Configurable policies by role, location or employee category.
- Reporting and audit readiness: Real-time dashboards, reports and detailed audit trails.
- Pricing and trial availability: INR pricing or a clear free plan and trial or demo access.
- Usability and security: An easy interface plus safeguards such as encryption and role-based access.
- Indian statutory compliance: Built for local Indian labor rules.
- Payroll and accounting integration: With Tally, Zoho Books or QuickBooks.
10 Best Free HR Software in India for Small Businesses (2026)
Below are 10 free HR software options for small businesses in India in 2026. Each entry covers pricing, ratings on popular platforms, and compliance with Indian labor laws.
1. factoHR
factoHR is an AI-powered HR and payroll platform with one of the most generous free plans for small businesses in India. The free plan covers up to 20 employees, stays free forever, and asks for no credit card to begin. You get real HR work done from day one: centralized employee records, automated payslips and one-click letters. And unlike most free tools, there are no hidden costs; implementation and cloud support come free. Sign up and start managing your team in minutes.
Key Features
- Payslip generation for accurate salary statements
- India compliance support
- Permanent free plan for up to 20 employees, no time limit
- Employee data management in one central system
- Letter generation (offer, appointment, experience)
- Free mobile access via Android and iOS apps with real-time cloud sync
- Zero implementation cost and free cloud support, no hidden setup or hosting fees
- Easy upgrade path to paid modules as you grow
Rating (as of June 2026): 4.7/5 on Capterra, 4.6/5 on G2.
Mobile App: Android and iOS apps with cloud access and centralized data sync across devices.
Best Suited for: You want a forever-free plan for up to 20 employees with India compliance and zero setup cost.
2. OrangeHRM
OrangeHRM is one of the most established open-source HR platforms available today. Its free, self-hosted, open-source edition covers core HR features such as employee and attendance management, as well as a self-service portal. You can host it yourself and configure it to fit your processes. OrangeHRM also sells paid plans for businesses that need advanced functions.
Features
- Built-in employee self-service portal
- Paid cloud plans for advanced features
- Core employee and attendance management
- Configurable modules that scale with you
- Mature open-source platform you can self-host
Rating (as of June 2026): 4.2/5 on G2, 4.2/5 on Capterra.
Mobile App: Android and iOS apps available.
Best Suited for: You want a free, self-hostable open-source HR you can fully customize.
3. Zoho People (Free Plan)
Zoho People is a cloud-based HR platform for small and medium-sized businesses that want to digitize their HR processes. Its free plan supports up to 5 users and includes an employee database and leave tracking. You can upgrade to paid plans for analytics and integration with other Zoho apps such as Zoho Payroll, Zoho CRM and Zoho Recruit.
Features
- Free plan for up to 5 users
- Android and iOS apps available
- Employee database and leave tracking
- Integrates with Zoho Payroll, CRM and Recruit
- Cloud-based HR for small and medium businesses
Rating (as of June 2026): 4.4/5 on G2 and Capterra.
Mobile App: Android and iOS apps available.
Best Suited for: You want an affordable HR tool with a free plan and already use other Zoho apps.
4. Horilla
Horilla is an open-source HR platform known for its modern interface. It covers employee management, attendance and leave tracking, and payroll processing. Because it is open-source, you can self-host it and shape it around your own workflows. It suits startups and growing businesses that want control over their processes.
Features
- Built-in payroll processing
- Modern, clean user interface
- Forever-free, self-hosted edition
- Enterprise plan available on request
- Employee, attendance and leave management
Rating (as of June 2026): 4.4/5 on G2.
Mobile App: Android and iOS apps available.
Best Suited for: You want a modern, forever-free open-source HR for unlimited users.
5. MintHCM
MintHCM is an open-source Human Capital Management platform for organizations that want HR administration plus employee development. Its core HR module includes skills and training management, recruitment, onboarding, and workforce analytics. This gives you good visibility into employee performance and growth.
Features
- Skills and training management
- Recruitment and onboarding
- Workforce analytics for performance visibility
- Free to download and self-host
- Open-source HCM focused on people development
Rating (as of June 2026): no ratings on G2, 5/5 on Capterra (small sample).
Mobile App: Android and iOS apps available.
Best Suited for: You want a free open-source HCM with strong skills and talent tracking.
6. Open HRMS
Open HRMS is an open-source HR platform built on Odoo and aimed at SMEs. It brings Odoo’s HR capabilities, including employee management, reporting, and performance appraisals. It also taps into Odoo’s broader ecosystem, making it a strong fit if you already run Odoo ERP. You can self-host it and customize it to your workflows.
Features
- Open-source HR built on Odoo
- Performance appraisals included
- Ideal for existing Odoo ERP users
- Employee management and reporting
- Optional paid implementation and support
Rating (as of June 2026): 3.8/5 on G2, 3/5 on Capterra.
Mobile App: Available through Odoo mobile applications.
Best Suited for: You already use Odoo and want free HR inside it.
7. Frappe HR
Frappe HR is a fully open-source HR and payroll platform built for organizations of any size. It covers employee management, onboarding, performance management and analytics. Its core remains open-source, making it a good fit if you need flexibility and customization.
Features
- Built-in analytics
- Active developer community
- Optional cloud hosting and support
- Onboarding and performance management
- Fully open-source with zero license fees
Rating (as of June 2026): 4.6/5 on G2.
Mobile App: Android and iOS apps available.
Best Suited for: You want fully free, open-source HR with no license fees.
8. Odoo HR
Odoo HR is part of Odoo’s wider business management suite, which suits you if you want HR and other business functions on a single platform. The HR suite covers employee management, appraisals and a self-service portal. Its modern interface lets you start with a few functions and add more as you grow.
Features
- Self-service portal
- Employee management and appraisals
- Modular, add functions as you grow
- Free, open-source Community edition
- Part of a wider business management suite
Rating (as of June 2026): 4.5/5 on G2, 4.2/5 on Capterra.
Mobile App: Android and iOS apps available.
Best Suited for: You want a free Community edition that links HR with your wider operations.
9. Sentrifugo
Sentrifugo is a free, open-source HRMS for small and mid-sized companies. It covers employee engagement functions such as leave management, performance appraisals, and talent acquisition. It is flexible and supports large employee bases, which suits growing organizations.
Features
- Self-host at no cost
- Talent acquisition tools
- Leave and performance appraisal modules
- Supports large employee bases
- Completely free, open-source under GPLv3
Rating (as of June 2026): 4.3/5 on G2 and Capterra.
Mobile App: None. You access it through a web browser.
Best Suited for: You want a completely free open-source HRMS for large teams.
10. IceHrm
IceHrm is an HR management platform for organizations that want core HR features. The free version covers workforce management, leave tracking and self-service. You can self-host the open-source version or use the vendor’s cloud service. It is easy for startups and small teams that want to move off spreadsheets.
Features
- Employee self-service
- Self-hosted or cloud option
- Free cloud plan for up to 5 employees
- Simple, fast to deploy for small teams
- Workforce management and leave tracking
Rating (as of June 2026): 4.4/5 on G2, 4/5 on Capterra.
Mobile App: Android and iOS apps available.
Best Suited for: You run a small team and want a simple free plan for records and leave.
Quick Comparison Table: Best Free HR Software in India at a Glance
Ratings and free-plan caps are correct as of June 2026 and can change. Check each vendor’s current page before you decide.
| # | Software | Free Plan / Users Limit | Best Free For | Best Use-Case Scenario | Mobile App |
|---|---|---|---|---|---|
| 1 | factoHR | Free forever, up to 20 employees | Small teams needing payroll, attendance & letters free | Growing SMB moving off spreadsheets to all-in-one HR | Android & iOS |
| 2 | OrangeHRM | Free open-source | Self-hosting and full customization | Teams with IT resources wanting a custom HR setup | Android & iOS |
| 3 | Zoho People | Free for up to 5 users | Startups already using Zoho apps | Early-stage startup digitizing basic HR | Android & iOS |
| 4 | Horilla | Free forever, self-hosted (unlimited) | Modern UI with unlimited users | A startup wanting a clean, open-source HR for free | Android & iOS |
| 5 | MintHCM | Free to self-host (unlimited) | Skills and talent tracking | Companies focused on employee growth & development | Android & iOS |
| 6 | Open HRMS | Free open-source, self-hosted (unlimited) | Existing Odoo ERP users | Businesses running Odoo want HR inside it | Odoo mobile apps |
| 7 | Frappe HR | Free open-source, self-hosted (unlimited) | No license fees, full open-source | Tech-savvy teams wanting free, customizable HR | Android & iOS |
| 8 | Odoo HR | Free Community edition (no user limit) | Linking HR with wider operations | A growing firm wanting HR plus ERP in one suite | Android & iOS |
| 9 | Sentrifugo | Free open-source (up to 5,000 users) | Large teams on a free plan | Mid-sized company needing free HR for big teams | Web only |
| 10 | IceHrm | Free cloud plan, up to 5 employees | Simple records and leave for small teams | Tiny team leaving spreadsheets behind | Android & iOS |
Free vs Open-Source HR Software: What is the Difference?
People often use these two terms interchangeably, but free HR software and open-source HR software are not the same. The table below shows how they differ.
| Factor | Free HR Software | Open-Source HR Software |
|---|---|---|
| Cost | Free to use, usually with feature or user limits. | Free to access, but setup and maintenance costs may apply. |
| Source code access | No access to the source code. | Full access to the source code. |
| Customisation | Limited to the options the vendor provides. | Can be customized extensively to fit your business. |
Note*: Some platforms offer both benefits. These include Horilla, Frappe HR, Open HRMS, MintHCM, IceHrm and Sentrifugo.
What is Free HR Software?
Free HR software is an HR management solution that lets you handle essential HR tasks, such as attendance and leave tracking, without paying a subscription fee. Vendors offer it either as a permanently free plan with limited features or as a trial of a paid platform.
For startups and small businesses, a free HR solution reduces manual work by providing a single central system for your workforce. Free HRMS tools support a few functions and cap the number of employees or users. As your team grows, you will need an all-in-one platform with advanced features such as payroll processing and workforce analytics.
Is Free HR Software Right for Your Business? Benefits and Limits
- A free HR platform centralizes employee information, so your workforce data is easy to manage and access.
- You can manage leave requests and approvals through an automated system, which improves transparency and cuts manual tracking.
- You can store employee details securely and accurately, ready when you need them.
- Many free tools auto-generate HR letters, such as offer, appointment and experience letters.
- Some free plans automate payslip creation, which gives you accurate salary statements with less admin work.
These features help you manage HR work at no cost. But free software only targets basic needs and becomes a limitation as you grow. So when is the right time to move from free to paid? The next section answers that.
Free HR Software vs Paid HRMS: When Should You Upgrade?
Follow a simple rule. If you spend more time managing HR by hand than your software saves you, it is time to upgrade.
| Factor | Free HR Software | Paid HRMS |
|---|---|---|
| Team size | Best for startups and small teams with basic needs. | Best for growing or multi-location workforces. |
| Compliance | Suits businesses with limited compliance needs. | Better when you need payroll processing and statutory compliance. |
| Support | Works if you are fine with self-service and limited support. | Ideal when you need implementation help, training and dedicated support. |
Once you cross a certain headcount, say 20, managing HR by hand gets hard. Manual steps and feature limits start costing more time than they save. That is when a paid HRMS becomes a practical decision, not just an expense.
One more point for Indian buyers: check where each tool stores your data. Self-hosted open-source tools keep employee data on your own servers, while many free cloud plans host it abroad. If data residency matters to you, weigh that before you choose.
factoHR’s pricing plans show what extra automation and compliance support you unlock as your business grows.
Real Use-Cases: How Small Businesses in India Run HR for Free
A 10-Person Digital Agency
A growing agency struggles to organize employee data and manage leave, on top of incomplete onboarding and compliance needs. Here, quick setup for new hires matters most. Zoho People, for example, centralizes these tasks without adding burden.
A 50-Person Manufacturing SME
As a manufacturing business expands, workforce visibility and shift management become increasingly important. Your HR team needs an organized way to work. factoHR gives you a strong balance of workforce management functions at this stage.
A 200-Person Services Firm with Compliance Needs
A multi-location services company struggles with payroll and compliance. Basic HR software proves inefficient for records and processes at this size. factoHR fits these cases, with scalable features that support your HR operations.
You can explore more options in our guide to HR software for small businesses (SMEs).
Conclusion and Next Step
The best free HR software in India is the one that solves your current HR problems without creating new ones as you grow. This guide gives you a practical starting point for small businesses in India.
factoHR suits SMBs that need accurate payroll and statutory compliance. Zoho People is a strong free option for growing startups. Frappe HR is a compelling Best for you want open-source software.
The right choice today saves hundreds of hours of manual work and builds a base for growth. If you want scalable HR software with strong compliance features, start with factoHR’s premium plan.
Frequently Asked Questions
Is there any 100% Free HR Software in India?
Yes. Several HR tools offer permanent free plans and open-source editions you can use without paying a subscription. Note that free versions carry limits, such as fewer integrations and a cap on employees.
Which is the Best Free HR Software for Small Businesses in India?
It depends on your needs. Zoho People suits small businesses that want a simple platform. Horilla suits teams that want open-source flexibility. If you need long-term payroll and compliance, move to an upgraded plan.
Can Free HRMS Software Handle Indian Payroll Compliance?
Some free tools offer basic payroll and minimal support for Indian statutory needs. If you need an advanced plan, review each platform’s capabilities before you rely on a free version.
What is the Difference between Free and Open-Source HR Software?
A free tool is one you use without paying a subscription. Open-source software gives you the source code, so you can customize and modify the platform to fit your needs.
How Many Employees Can Free HR Software Support?
It depends on the vendor. Some free plans cap users at 5 to 10, while others allow 50, 200, or even unlimited users with feature or location limits. Open-source tools usually have no user cap. Check the vendor’s free terms before you decide.
Is Free HR Software Safe to Use?
It can be, but it depends on the provider. Reputable vendors offer solid security, while weaker ones may not. Look for data encryption, role-based access controls, secure cloud hosting, and regular backups before you commit.
Can I Migrate from the Free Plan to a Paid factoHR Plan Later?
Yes, and it’s seamless. factoHR’s free plan stays free forever for up to 20 employees, so you’re never on a ticking clock. When you’re ready for more, simply unlock additional modules and advanced features by upgrading to a paid plan, anytime, on your terms. No disruption, no data migration headaches, just more power when your team needs it.
Does factoHR Offer a Free Plan?
Yes. factoHR provides a permanent free plan for up to 20 employees.
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