The four pricing models
Per employee per month
The most common model for small and mid-size Indian companies: a rate for every active employee on the system, billed monthly or annually, rising and falling with headcount. In the Indian SMB market the rate commonly falls in a broad range, from a few tens of rupees per employee per month for core HR to a few hundred for a full suite with payroll.
Company-level tiers with a minimum
A plan is priced for a band of employees, say up to 50 or up to 100, as a fixed monthly amount or a per-employee rate applied to a minimum count regardless. A 22-person company on a 50-employee tier pays for 28 empty seats. The model suits companies near the top of a band and penalises those near the bottom.
Quote-only enterprise
No public price; the contract is negotiated on headcount, modules, entities, service levels and term, with implementation priced in the same negotiation. This is the norm above a thousand employees. Below that, quote-only usually means the price depends on the salesperson’s quarter.
Free tiers
Several vendors offer a free plan for very small teams, typically core HR for a limited headcount, with payroll on paid plans. It is worth having if it is genuinely free for life and the upgrade path is per employee; it is a trial in disguise if it expires, caps features you need on day one, or forces a jump to a company tier.
| Model | How you are billed | Works well when | Watch for |
|---|---|---|---|
| Per employee per month | Rate × active employees, monthly or annual | Headcount under a few hundred, or changing often | Per-module rates that stack; what counts as an employee |
| Company tier with minimum | Fixed amount per band, or a rate on a minimum count | Headcount near the top of a band | Paying for empty seats; the jump to the next band |
| Quote-only enterprise | Negotiated contract, usually annual or multi-year | Thousands of employees, several entities | Implementation priced separately; price revision clauses |
| Free tier with paid plans | Nothing until you cross the cap or need a paid module | Teams under 15 to 20 people | Expiry, feature caps, and the price of the first paid plan |
What is usually extra
The subscription is the number on the website; the invoice has more lines. Ask about each of these before comparing anything, because two vendors with the same per-employee rate can differ by half at the end of year one.
- Implementation or setup fee. A one-time charge for configuration and onboarding, often scaled to headcount. Some vendors waive it on annual billing; some charge nothing at all.
- Per-module add-ons. Payroll, recruitment, performance or expenses priced as separate per-employee rates on top of core HR. Four add-ons can double the base rate.
- SMS and WhatsApp credits. Notifications, OTPs and payslip alerts billed per message or as a prepaid pack that runs out mid-month.
- Biometric integration. A one-time or per-device charge to connect your attendance devices, and sometimes a recurring charge per device.
- Support tiers. Email support included; phone, a named contact or a response-time commitment on a higher plan or as a separate fee.
- Training. Admin and manager training sessions beyond the first one, billed per session or per day.
- Data migration. Importing employee masters, balances, loans and year-to-date tax figures from the old system, sometimes included and sometimes a project fee.
- Custom domain and branding. Your logo and hr.yourcompany.com, usually on the top plan only.
Total cost of ownership: two worked examples
The figures below are illustrative, not any vendor’s price list. They use a single rate of ₹150 per employee per month for core HR with payroll so the shape of the cost is visible; substitute the rate from your own quote. What matters is which lines appear and how they behave when headcount changes.
A 40-person company
| Component | How it is computed | Year one | Year two |
|---|---|---|---|
| Subscription | 40 employees × ₹150 × 12 months | ₹72,000 | ₹72,000 |
| Implementation | One-time, if charged; commonly a fixed fee for this size | Once | Nil |
| SMS credits | Payslip and OTP alerts; a small monthly pack | Monthly | Monthly |
| GST | 18% on every line above | Added | Added |
A 200-person company
| Component | How it is computed | Year one | Year two |
|---|---|---|---|
| Subscription | 200 employees × ₹150 × 12 months | ₹3,60,000 | ₹3,60,000 |
| Per-module add-ons | If payroll or attendance is an add-on at, say, ₹40 per employee, each adds 200 × ₹40 × 12 = ₹96,000 | Per module | Per module |
| Implementation | Scaled to headcount and modules; often waived on annual billing | Once | Nil |
| Biometric integration | Three sites, four devices; one-time and sometimes per device per year | Once | Possibly recurring |
| Data migration | From another HRMS: masters, balances, loans, year-to-date TDS | Project fee or included | Nil |
| GST | 18% on every line above | Added | Added |
How to read a quote
- What counts as an employee. Active employees only, or everyone on the system during the year, leavers included? Ask whether joiners and leavers are prorated.
- Is there a minimum? A minimum headcount, a minimum monthly bill or a minimum contract term. Any of the three changes the arithmetic for a small company.
- Which modules are in the rate. Get the list in writing, with the add-on rate for anything not on it.
- Implementation scope. What the fee covers: data import, configuration, a parallel payroll, training. What it leaves out is what you pay for later.
- Exit terms. Notice period, data export, and how long it stays available after cancellation.
- GST. Software subscriptions attract 18% GST. A quote that shows it separately is being straight; one that does not is 18% cheaper than it looks.
Kuzhu’s pricing, stated plainly
Kuzhu has four plans. Basic is free for life for companies up to 15 employees: employee records, attendance with mobile punch, leave, document storage and the mobile app, with community support. It is not a trial.
Starter (up to 50 employees), Growth (up to 250) and Enterprise (unlimited) are priced per employee per month in rupees, quoted on your actual headcount when you book a trial. There is no setup fee and no minimum contract. Prices exclude GST, and annual billing takes two months off. Billing follows active employees, so joiners and leavers are prorated. Growth adds payroll with PF, ESI, professional tax and TDS, recruitment, performance, expenses, approvals and reports, with priority email and phone support and a parallel payroll included in onboarding; Enterprise adds every module, a dedicated database and SLA, white-label branding on your domain, API access and a named support contact. Trials are 14 days on Starter and Growth and 30 on Enterprise.
If you are comparing Kuzhu with a specific product, the comparison pages describe each vendor’s pricing model in these terms, without quoting figures that will be stale by the time you read them. The buyer’s guide covers what to check before price.
Get a per-employee quote at your real headcount, with every plan’s module list and no setup fee.
See plans and book a quoteQuestions people ask
How much does HRMS software cost in India?
For small and mid-size companies, most vendors charge per employee per month, and the rate commonly ranges from a few tens of rupees for core HR to a few hundred for a full suite with payroll. Add implementation, module add-ons, message credits and 18% GST to get the real figure. Free tiers exist for very small teams; enterprise contracts are quoted individually.
Is per-employee pricing cheaper than a company plan?
Below the plan’s minimum headcount, yes, because you pay only for the people you have. Near the top of a band, a company tier can work out cheaper per head. Compute both at your headcount today and at the headcount you expect in two years; the answer often flips as a company grows, which is why per-employee pricing suits changing numbers.
Do HRMS vendors charge an implementation fee?
Many do, as a one-time charge scaled to headcount and modules, and some waive it on annual billing. Others, including Kuzhu, charge no setup fee at all. Whichever applies, ask what the onboarding includes: data import, configuration, a parallel payroll and training are the parts that cost money if they are left out and done later.
Is GST charged on HRMS subscriptions?
Yes. Software subscriptions are a taxable supply of services and attract GST at 18%, which a registered business can claim as input tax credit. Vendors quote prices excluding GST, so add 18% to every line of the quote, including implementation and credits, when comparing against a budget.
Is annual billing worth it?
Usually. Annual billing commonly takes one or two months off the subscription, which at 200 employees is more than most implementation fees. The trade is flexibility: a company expecting to shrink, or unsure the product fits, should run the trial and a month or two on monthly billing before committing.
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