Last Updated on July 1, 2026 by
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Payroll outsourcing in India typically costs ₹50–₹150 per employee per month on a per-head model, or a fixed monthly fee from around ₹5,000–₹15,000 for small businesses. Price depends on headcount, pay-cycle complexity, statutory filings (PF/ESIC/PT/TDS), and whether compliance and payslips are included. For most SMEs, a bundled monthly plan is cheaper than an in-house payroll executive.
The two pricing models
- Per-employee, per-month (PEPM): ₹50–₹150/employee. Scales with headcount; best above ~25 staff.
- Fixed monthly retainer: a flat fee (from ~₹10,000/mo at HRTailor) covering a defined scope. Predictable; best for 5–50 staff.
What drives the cost
| Factor | Lower cost | Higher cost |
|---|---|---|
| Headcount | Fewer employees | Larger workforce |
| Pay cycles | Single monthly run | Multiple / off-cycle |
| Statutory scope | Payroll only | + PF/ESIC/PT/TDS filings |
| Extras | None | Payslip portal, FnF, reimbursements |
| Locations | Single state | Multi-state PT/LWF |
In-house payroll vs outsourcing
An in-house payroll executive costs ₹25k–₹45k/month in salary alone — before software, training, and the penalty risk of a missed PF/ESIC filing. Outsourcing converts that into a smaller, predictable fee with compliance built in.
What should be included
- Monthly processing + payslips
- PF, ESIC, PT & TDS computation and filing
- Statutory registers
- Full & final settlement
- Attendance & leave integration
- A dedicated contact
Frequently asked questions
What is the average payroll outsourcing cost in India?
₹50–₹150 per employee/month, or a fixed fee from ~₹10,000/mo for SMEs.
Is payroll outsourcing cheaper than hiring in-house?
For most SMEs under ~100 staff, yes — no salary, software, or compliance-penalty overhead.
Does the price include PF and ESIC filing?
It should — always confirm statutory filings are in scope (HRTailor includes them).
Are there setup or hidden fees?
Ask for all-inclusive pricing; HRTailor quotes a flat monthly fee.
How fast can payroll be set up?
Typically within days once employee and salary data is shared.
See HRTailor's payroll plans →
Related: HR outsourcing · statutory compliance.
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