Top 10 Payroll Outsourcing Services in India for 2025

What is Payroll Outsourcing?[toc=Introduction]

Payroll outsourcing is the practice of hiring an external service provider to manage a company’s payroll processes. This can include everything from calculating employee salaries and tax deductions to ensuring compliance with labor laws and distributing paychecks.

When we talk about payroll, it’s not just about paying employees on time—it’s a complex process involving accurate calculations, tax filings, and adherence to ever-evolving regulations. Based on our experience in paying employees in India, we can confirm that even a small error in payroll can lead to significant compliance risks. That’s where outsourcing steps in as a practical solution.

How does payroll outsourcing services work in India?[toc=How it Works]

In our years of experience helping foreign companies manage payroll in India, we’ve seen how outsourcing payroll processing services simplifies what can otherwise be a stressful and time-consuming process. It’s about letting experts handle everything from salary calculations to compliance with Indian laws, so businesses can focus on what they do best.

Here’s how payroll outsourcing services works:

1. Data Collection: Businesses share employee details such as salaries, attendance records, tax declarations, and benefits information with the payroll provider. This data forms the foundation for payroll processing.
2. System Setup: The provider configures their systems to align with the company’s salary structure, statutory requirements (like Provident Fund, Employee State Insurance, and Professional Tax), and other policies.
3. Payroll Processing: Each pay cycle, the provider calculates salaries based on attendance, overtime, deductions, and tax obligations. They ensure compliance with Indian labor laws and tax regulations.
4. Payment Distribution: Once calculations are finalized, salaries are disbursed directly into employees’ accounts. Pay slips are generated for transparency.
5. Compliance Management: Payroll providers handle statutory filings such as TDS returns, PF contributions, and ESI compliance. This ensures businesses meet legal obligations without errors or delays.
6. Reporting: Detailed reports on payroll expenses and compliance filings are provided to help businesses track financial performance and ensure transparency.

What are the top 10 payroll outsourcing services in India?[toc=Top 10 Payroll Services]

When it comes to payroll outsourcing services in India, there are plenty of options to choose from. Over the years, we’ve worked with multiple businesses across different countries and have seen which providers consistently deliver reliable and efficient services. Here’s a list of the top 10 payroll outsourcing companies in India that can help businesses simplify payroll, stay compliant, and focus on growth.

1. Wisemonk
2. PaySquare
3. ZINGHR
4. ADP
5. Easy Source
6. Excelity Global
7. Osource
8. HRMThread
9. HGS
10. Ramco

If you’re considering outsourcing your payroll, choosing one of these top providers can make all the difference; helping you stay compliant while freeing up valuable resources to focus on growing your business!

1. Wisemonk

Wisemonk is a specialized Employer of Record (EOR) and payroll services provider focused on the Indian market. They offer comprehensive solutions for global companies expanding into India, with a strong emphasis on local compliance, employee self-service portals, and flexible benefits administration. Wisemonk's services include end-to-end payroll processing, statutory compliance management, and contractor payments, making it an ideal choice for U.S. companies and startups looking to establish or grow their presence in India.

Key Features

• End-to-end EOR services
• Local compliance expertise for India
• Employee self-service portals
• Flexible benefits administration
• Contractor payment management
• Integration with popular accounting software
• Real-time payroll analytics and reporting

Pros & Cons

Pricing

• EOR services start at $85 per employee per month
• Contractor payments at $19 per contractor
• Custom pricing available for larger enterprises
• No hidden fees, with statutory filings included in the price.

2. PaySquare

Paysquare is a leading payroll outsourcing company in India, offering comprehensive payroll management solutions. They specialize in handling the entire payroll process, from consolidating HR/Finance & employee inputs to processing payroll, providing outputs, and managing statutory filing. Paysquare is known for its robust security measures, data accuracy, and AWS-hosted self-service portal.

Key Features

• Payroll processing and management
• Compliance management
• Employee self-service portal (MyPayroll)
• Leave and attendance management
• Statutory reporting and tax filing
• Multi-country payroll support
• Customizable reports
• Client self-service portals for HR admins

Pros & Cons

Pricing

PaySquare does not publicly disclose its pricing. They offer custom quotes based on the specific needs of each client.

3. ZINGHR

ZingHR is a comprehensive cloud-based human resource management software and payroll solution designed specifically for Indian companies. It provides a complete solution for organizational needs, including a dashboard of all employee activities. ZingHR is known for its user-friendly interface, adaptability to changing business needs, and focus on creating an engaged and high-performing company culture.

Key Features

• HR Ground Zero for core HR functions
• Talent acquisition with AI/ML screening
• Employee engagement through Zing Social Platform
• Performance management with 360-degree feedback
• Workforce management including zero-touch payroll
• Mobile app support
• AI-driven payroll automation
• Real-time analytics and reporting

Pros & Cons

Pricing

ZINGHR offers custom pricing based on the number of users and modules. They provide four packages: Welcome, Power, Business, and Turbo, along with options for custom plans. Specific pricing details are not publicly disclosed and require contacting ZINGHR for a quote.

4. ADP (Automatic Data Processing)[toc=4. ADP]

ADP is a global leader in payroll and HR solutions, offering a wide range of services for businesses of all sizes. With over 75 years of payroll expertise globally, ADP provides comprehensive payroll outsourcing, tax processing, and HR management tools. They specialize in accurate, timely, and compliant payroll services across multiple countries, including India.

Key Features

• Full-service payroll processing
• Tax calculation and filing
• Compliance support for PF, ESI, PT, and LWF
• Real-time cloud-based payroll access
• Employee self-service portals
• Integration with popular accounting software
• Mobile app for employers and employees
• Multi-country payroll support

Pros & Cons

Pricing

ADP does not publicly disclose specific pricing. They offer customized quotes based on business size, needs, and selected services. Pricing is typically on a per-employee-per-month (PEPM) basis, with contract lengths ranging from three to five years.

5. Easy Source

Easy Source is an HR solutions company specializing in payroll and manpower outsourcing, PEO (Professional Employer Organization), and other managed services. With over 16 years of experience, they cater to a diverse clientele of 300+ companies across India. Easy Source focuses on providing efficient, cost-effective payroll management services with a strong emphasis on compliance and customer support.

Key Features

• End-to-end payroll processing
• Compliance management across India
• AI-enabled report builder
• User-friendly smart app
• Real-time data analytics
• 24/7 support from in-house experts
• PAN India compliance management
• Manpower outsourcing services

Pros & Cons

Pricing

Easy Source does not publicly disclose their pricing structure. They offer customized quotes based on the specific needs and size of each client's business.

6. Excelity Global

Excelity Global is one of Asia's largest payroll outsourcing companies, offering comprehensive payroll and HR solutions across the Asia-Pacific region. With over 400 clients across 17 countries, Excelity specializes in payroll processing, compliance administration, and human capital management services. They provide both fully managed payroll solutions and software-as-a-service (SaaS) options.

Key Features

• Multi-country payroll processing
• Compliance management and statutory reporting
• Benefits administration
• Time and attendance tracking
• Employee self-service portal
• Cloud-based payroll platform (ezpayroll)
• Integrated HCM platform
• Payroll analytics and reporting

Pros & Cons

Pricing

Excelity Global's payroll services are priced on a per-employee-per-month (PEPM) basis. Implementation is charged as a flat, one-time fee. Contract lengths typically range from three to five years. Their SaaS solution, ezpayroll, starts at $0.15 per user per month. Specific pricing details require contacting Excelity for a customized quote.

7. Osource

Osource is a global player in IT and business process outsourcing since 2004. They offer comprehensive HRO services, including payroll management, employee lifecycle management, HR shared services, staffing, recruitment, risk and compliance management, and various back-office processes. Osource caters to businesses looking for end-to-end HR and payroll solutions.

Key Features

• Full suite of payroll management services
• Employee lifecycle management
• HR shared services
• Staffing and recruitment solutions
• Risk and compliance management
• Global payroll capabilities
• Customizable solutions for various business sizes

Pros & Cons

Pricing

Osource does not publicly disclose pricing information. They offer customized quotes based on the specific needs and size of each client's business.

8. HRMTHREAD

HRMTHREAD is a comprehensive HR and payroll software solution designed specifically for Indian businesses. It offers a wide range of features including automated payroll processing, compliance management, and employee self-service portals. HRMTHREAD is known for its user-friendly interface and cost-effectiveness, making it suitable for startups, SMEs, and large enterprises in India.

Key Features

• Automated TDS, PF, ESIC, and Full & Final Settlement
• Biometric & Geo-fencing Attendance
• Mobile App with GPS & Payslips Delivery
• 360 Degree Feedback & Goal-Aligned Reviews
• Secure Data Storage & Audit Trails
• Employee Self Service (ESS)
• Leave Management / Leave Application Work-flow
• Tax Projection / Live Tax Planner

Pros & Cons

Pricing

HRMTHREAD offers tiered pricing plans:

• Base: ₹1,500/Per Month
• Standard: ₹2,000/Per Month
• Enterprise: ₹3,000/Per Month
  Pricing is based on the number of employees and features required.

9. HGS (Hinduja Global Solutions)[toc=9. HGS]

Hinduja Global Solutions (HGS) is a major player in business process management and customer experience solutions across multiple sectors globally. Their Business Services Division offers various payroll services including end-to-end payroll outsourcing, compliance management, recruitment, and structured staffing services, as well as finance, accounting, and HR services.

Key Features

• End-to-end payroll outsourcing
• Compliance management across multiple countries
• Recruitment and structured staffing services
• Finance and accounting services
• HR shared services
• Global payroll capabilities
• Customizable solutions for various industries

Pros & Cons

Pricing

HGS does not publicly disclose their pricing structure. They offer customized quotes based on the specific needs and size of each client's business.

10. Ramco

Ramco is a comprehensive HR and payroll software provider offering solutions for global businesses. Their HCM suite includes advanced features for payroll processing, compliance management, and human capital management. Ramco is known for its innovative use of AI and machine learning in HR processes, making it suitable for large enterprises with complex, multi-country payroll needs.

Key Features

• Multi-country payroll processing
• AI-driven payroll automation
• Compliance management and statutory reporting
• Employee self-service portal
• Time and attendance tracking
• Leave management
• Expense management
• Mobile access
• Integration capabilities with other HR systems

Pros & Cons

Pricing

Ramco uses a subscription-based pricing model with options for per-employee-per-month or tiered enterprise licensing based on the number of users. Specific pricing details are not publicly disclosed and require contacting Ramco for a customized quote. Implementation is typically charged as a one-time fee, with contract lengths ranging from 3-5 years.

Detailed Comparison of Top 10 Payroll Outsourcing Companies in India[toc=Comparison Table]

How do I choose the right payroll service provider in India?[toc=How to Choose]

Choosing the right payroll outsourcing company in India can feel like a big decision, but it doesn’t have to be overwhelming. Over the years, we’ve seen what works and what doesn’t when businesses outsource their payroll services in India. Here are five simple things to keep in mind while making your choice:

Look for Strong Compliance Expertise:

India’s labor laws and tax regulations are complex and always changing. A reliable payroll service provider  should know these laws inside out and ensure compliance with things like Provident Fund (PF), Employee State Insurance (ESI), and TDS filings. From our experience, this is non-negotiable because even a small error can lead to penalties.

Prioritize Customer Support:

Payroll issues can pop up unexpectedly, so having a provider with responsive customer support is a must. Whether it’s fixing an error or answering employee queries, good support makes all the difference. We’ve seen how providers with dedicated support teams build trust and keep operations running smoothly.

Check Their Technology and Features

The right payroll outsourcing partner should offer modern tools that make life easier like employee self-service portals, automated salary calculations, and real-time reports. We’ve found that providers with strong tech capabilities not only save time but also reduce errors, making payroll management stress-free.

Think About Scalability

Your business is going to grow, and your payroll needs will grow with it. That’s why it’s important to choose a provider who can scale their services as you expand; whether you’re hiring more employees or operating in multiple locations. In our experience, scalability ensures you won’t outgrow your payroll partner.

Understand Their Pricing

Transparency is key when it comes to pricing. Make sure the provider gives you a clear breakdown of costs without any hidden fees. While affordability matters, don’t compromise on quality—choosing the cheapest option could cost more in the long run if compliance or accuracy is compromised.

By keeping these points in mind, you’ll find a payroll service  who not only meets your needs but also helps your business run more efficiently. The right partner will take the hassle out of payroll so you can focus on growing your business with confidence!

What is the typical cost structure for payroll outsourcing in India? Are there hidden fees?[toc=Cost Structure]

Based on our analysis of leading payroll companies in India, the typical cost structure for payroll outsourcing follows these patterns:

Pricing Models

1. Per Employee Per Month (PEPM): The most common model, ranging from ₹150 to ₹200 per employee monthly. For U.S. companies, this translates to approximately $1.50 to $5 per employee per month.
2. Tiered Pricing: Costs decrease as employee count increases. For example:
   • 1-9 employees: ₹4,810 ($65) per month
   • 10-20 employees: ₹9,250 ($125) per month
3. Base Fee + Per Employee: A fixed monthly fee plus a per-employee charge. For instance, ₹5,550 ($75) base fee + ₹444 ($6) per employee.

Factors Influencing Costs

• Company Size: Businesses with over 100 employees typically pay 30% more for payroll services.
• Payroll Frequency: Weekly payrolls cost about 20% more than bi-weekly schedules.
• Service Complexity: Advanced features increase costs by approximately 15%.

Hidden Fees to Watch For

1. Setup Charges: One-time fees for account configuration and data migration.
2. Tax Filing and Compliance Fees: Additional costs for managing tax regulations and audits.
3. Direct Deposit Fees: Charges for electronic transfer of payments.
4. Report Generation: Extra fees for customized payroll reports.
5. Support Costs: Some providers charge separately for customer support or HR advice.

Cost-Saving Strategies

1. Bundle Services: Some providers offer discounts for combining multiple HR services.
2. Long-Term Contracts: Committing to longer terms can reduce monthly costs.
3. Optimize Payroll Frequency: Switching from weekly to bi-weekly payroll can save up to 20%.

By understanding these cost structures and potential hidden fees, U.S. companies can make informed decisions when selecting a payroll outsourcing partner in India, ensuring transparency and cost-effectiveness in their operations.

How do Indian payroll services reduce operational costs compared to in-house management?[toc=Cost Savings]

We’ve observed that Indian payroll services help global businesses reduce operational expenses by 30–50% through strategic optimization of compliance, technology, and staffing. Below, we break down the key cost-saving mechanisms and provide a comparative analysis.

Key Cost-Saving Mechanisms

1. Elimination of Software & Infrastructure Costs
   • In-house: Requires investments in payroll software (₹1.5–₹3 lakh/year) and IT infrastructure.
   • Outsourced: Providers include cloud-based platforms in service fees, saving ₹2–₹5 lakh annually.
2. Reduced Staffing Expenses
   • In-house: Hiring 2+ payroll specialists costs ₹8–₹12 lakh/year.
   • Outsourced: No dedicated hires needed, freeing funds for core business growt.
3. Compliance Penalty Avoidance
   • In-house: Errors in PF/ESIC filings risk penalties up to 200% of unpaid dues.
   • Outsourced: Guaranteed compliance reduces penalties by 90%.
4. Time Savings
   • In-house: Manual payroll processing takes 15–20 hours/month.
   • Outsourced: Automation cuts this to 3–5 hours, saving ~₹1.8 lakh/year in labor costs.
5. Scalability Without Capex
   • In-house: Expanding to new states requires hiring local experts (+₹5–₹10 lakh/year).
   • Outsourced: Providers handle multi-state compliance at no extra cost.

Source: Industry benchmarks from StartupFino, ADP India, and MME case studies.

Real-World Impact

• Case Study 1: A U.S. SaaS firm reduced payroll costs by 40% (~₹22 lakh/year) after outsourcing to Wisemonk, eliminating software licenses and compliance risks.
• Case Study 2: A retail chain saved 30% annually by automating tax filings and redistributing HR staff to strategic roles.

Why This Matters for U.S. Businesses

• Links to Cost Analysis (Section 5): Explains how fixed vs. variable pricing models amplify savings.
• Supports Provider Selection (Section 7): Highlights criteria like compliance guarantees and scalability.

By outsourcing payroll in India, businesses convert fixed expenses into variable costs while accessing enterprise-grade compliance and technology—a proven strategy for sustainable growth in India’s complex market.

What are the benefits of outsourcing your payroll services in India?[toc= Benefits]

Managing payroll in India can be a headache, especially for the foreign employers. Between the ever-changing labor laws, tax calculations, and compliance requirements, it’s easy to feel overwhelmed. That’s why outsourcing payroll services have become such a popular choice for businesses. From our experience working with companies across industries, here are some of the biggest benefits of outsourcing your payroll processes in India:

It Saves Time

Payroll is one of those tasks that eats up hours every month—hours that could be spent on things that actually help your business grow. By outsourcing, businesses can hand over the heavy lifting to experts who handle everything from calculations to compliance. We’ve seen how this frees up HR teams to focus on people and strategy instead of paperwork.

You Stay 100% Compliant

India’s labor laws and tax regulations are complicated. And they change all the time! Missing a deadline or making an error can lead to penalties. When you outsource payroll operations, you’re working with professionals who stay on top of all these changes and ensure everything is done by the book. In our experience, payroll compliance is one of the biggest reasons businesses choose to outsource.

It’s Cost-Effective

Hiring an in-house payroll team or investing in software can be expensive—not to mention the ongoing costs of training and updates. Payroll outsourcing is often much more affordable because you only pay for what you need. We’ve seen businesses save significant amounts by outsourcing while still getting top-notch service.

It Reduces Errors

Payroll outsourcing companies use advanced technology and double-check processes to ensure salaries are calculated correctly and paid on time. From what we’ve observed, this not only builds trust but also keeps morale high.

Why choose Wisemonk for payroll outsourcing in India?[toc=How Wisemonk helps]

When it comes to payroll outsourcing in India, Wisemonk stands out as a trusted partner for businesses of all sizes. With years of experience and deep expertise in Indian labor laws, tax regulations, and compliance requirements, Wisemonk simplifies payroll management while ensuring accuracy and efficiency. Here’s why Wisemonk is the ideal choice for payroll outsourcing:

• Accurate and Timely Payroll: From salary calculations to tax deductions like PF, ESI, and TDS, we ensure employees are paid on time—every time.
• Compliance You Can Trust: With India’s labor laws constantly changing, we stay ahead so you don’t have to worry about penalties or missed filings.
• Employee-Friendly Tools: Our self-service portals let employees access pay slips, tax documents, and more—keeping things transparent and hassle-free.
• Scalable Solutions: Whether you’re a startup or a growing enterprise, our payroll services grow with your business.

As an Employer of Record (EOR) in India, we provide recruitment services, tax optimization, employee background checks, company registration assistance, GCC setup support, offshore team building, work permit assistance, HR services, and onboarding solutions in India. These additional services make us the go-to partner for businesses looking to expand or streamline payroll operations in India.

Ready to simplify your employee compensation in India? Get in touch with us today and let Wisemonk handle the complexities while you focus on growing your business!

FAQs

How is payroll done in India?

Payroll in India involves calculating employee salaries, deducting taxes like TDS, PF, and ESI, and ensuring compliance with labor laws. It also includes generating pay slips, filing statutory returns, and distributing payments accurately and on time.

How much does payroll outsourcing cost in India?

The cost of payroll outsourcing in India depends on factors like the size of your workforce, the complexity of payroll processes, and the services required. Providers typically offer tailored pricing based on your business needs.

Which is the best payroll software?

The best payroll software depends on your business size, needs, and budget. If you’re looking for recommendations, we have an article titled “Best Payroll Software in India for 2025” that can guide you.

Does Wisemonk have experience working with U.S. companies?

Yes! Wisemonk has extensive experience working with U.S.-based companies looking to manage payroll or build offshore teams in India. We specialize in ensuring compliance with local laws while supporting global operations.

How long does it take to set up outsourced payroll services?

The setup time depends on the complexity of your requirements but typically ranges from a few days to a couple of weeks as providers collect data and configure systems.

Can outsourced payroll handle international employees working remotely from India?

Yes! Many providers specialize in managing payroll for international employees working remotely from India while ensuring compliance with local laws and tax regulations.

What are the key statutory contributions in India?

Statutory contributions include Provident Fund (PF), Employee State Insurance (ESI), Professional Tax, and Gratuity. These are mandatory deductions made by employers to ensure compliance and provide social security benefits to employees.

How do state-specific laws impact payroll processing in India?

State-specific laws like Shops and Establishments Acts influence working hours, leave policies, and wage structures. Businesses operating across multiple states must tailor payroll processes to meet local requirements.

Are gratuity payments part of payroll processing?

Yes, gratuity is a statutory benefit paid to employees after completing five years of service. It is calculated based on the last drawn salary and years of service.