Quick answer: A plant needs payroll that reads shift punches, applies overtime and statutory deductions without re-typing, and keeps contract workers on the right ledger. Keka calculates overtime, night allowances and shift premiums from attendance. StaffKhata, SalaryBox and PagarBook target small units with phone or device attendance. BetterPlace and TankhaPay cover contract workforces. All pricing below is as published in October 2026.
How we researched this: We read the Ministry of Labour's Compliance Handbook and FAQs on the Labour Codes, ESIC and Press Information Bureau pages on the EPF wage ceiling, and the pricing or product pages of Keka, StaffKhata, SalaryBox, PagarBook, Pocket HRMS, factoHR, greytHR, Kredily, Truein, BetterPlace and TankhaPay. Prices and features were checked in October 2026 and can change.
Six rules that shape a factory payroll
Software cannot be chosen before the legal calendar is clear. The Ministry of Labour's Compliance Handbook sets these out in plain terms.
| Rule | What the Ministry document says |
|---|---|
| Wage period | Daily wages at the end of the day; weekly on the last working day; fortnightly before the end of the second day after the fortnight; monthly before the expiry of the seventh day of the next month |
| Exit | All due wages within two working days when an employee leaves by resignation, dismissal or termination |
| Overtime | For an employee whose minimum wage is fixed under the Code, at least twice the normal wage for each extra hour |
| Records | Attendance register cum muster roll, wage register, overtime register and register of fines and deductions, electronic or physical, kept for five years; wage slips on or before payment |
| Deductions | Only authorised ones, and not above 50% of wages in a wage period |
| Contract labour | Provisions apply where 50 or more contract workers were employed on any day in the preceding 12 months; contractors with 50 or more need a licence; the principal employer pays contract workers if the contractor fails to |
Two statutes sit on top. The handbook says ESI applies to every establishment employing 10 or more persons, except seasonal factories, and to hazardous-activity establishments even with one employee. For EPF, it says the provisions apply to establishments employing 20 or more employees.
The EPF ceiling change matters most on the shop floor
The Ministry of Labour's release of 16 September 2026 raised the wage ceiling for mandatory EPF coverage from ₹15,000 to ₹25,000 a month from 17 September 2026. A PIB release says the change brings more than 51 lakh additional formal-sector workers in the ₹15,000 to ₹25,000 band into mandatory coverage. That band describes many skilled operators, so a plant that capped PF at ₹15,000 or excluded some workers needs to re-check enrolment. A PIB release on EPFO Goa's advisory tells establishments to enrol those workers, file ECRs on time and seed Aadhaar and KYC details. ESI is unaffected: the Ministry's FAQs say the ₹21,000 wage limit still applies. Our PF, ESI and PT calculation guide shows the arithmetic.
Overtime: where payroll disputes begin
Overtime is the most argued line on a shop-floor payslip, so test it first.
The legal anchor. The Ministry's FAQs say that under the OSH Code a worker who works more than eight hours in a day, or forty-eight in a week, is entitled to wages at twice the normal rate, paid at the end of the wage period. They also say overtime allowance forms part of the allowances counted in the 50% wage test under the Code on Wages, which matters when a worker's overtime is large. Women employed before 6:00 a.m. or after 7:00 p.m. need consent and safety measures, per the handbook, which is a roster rule your software should flag.
An illustrative calculation. Take a worker on ₹15,600 a month. If your policy uses 26 working days of 8 hours, the normal rate is ₹75 an hour, and 10 hours of overtime at twice that rate is ₹1,500. A tool using 30 days or a different divisor would give a different number, so ask each vendor to show its divisor, rounding and rate in a sample run. ESIC's FAQ adds a twist: overtime is excluded when testing the ESI wage limit but included when contributions are computed.
What vendors say they do:
- Keka: its manufacturing page says "Overtime, night allowances, and shift premiums are calculated automatically the moment attendance is logged", with drag-and-drop shift scheduling and wage registers and muster rolls centralised.
- greytHR: its attendance page lists overtime policies, overtime payslips, and applying overtime in bulk or per employee, plus automatic shift-rotation plans.
- Pocket HRMS: Premium adds automated shift assignment, break shifts and attendance fraud detection.
- StaffKhata: its Growth plan lists overtime and shift roster with automated payroll.
- PagarBook: the sample screen on its homepage shows overtime calculated at 1.5x. Compare that with the twice-the-rate rule above and confirm what multiplier your tool applies.
Three payslips under the 2026 limits
These are illustrations using rates from ESIC's contribution page (0.75% employee, 3.25% employer, ₹21,000 limit) and the 12% PF rate in the Ministry of Labour's documents. The figures are our arithmetic, before rounding rules.
| Worker | Gross and PF wage | PF (employee 12%) | ESI (employee 0.75%, employer 3.25%) |
|---|---|---|---|
| Helper | Gross ₹14,500; PF wage ₹8,700 | ₹1,044 | About ₹109 and ₹471 |
| Skilled operator | Gross ₹22,000; PF wage ₹13,000 | ₹1,560 | Not covered, above ₹21,000 |
| Contract fitter | Gross ₹26,000; PF wage ₹16,000 | ₹1,920 if contributions are on actual wage; ₹1,800 on the old ₹15,000 cap | Not covered |
The fitter row is the one that changed on 17 September 2026. The operator row shows why a ₹1,000 raise that crosses ₹21,000 removes ESI cover and the employer's 3.25% outgo for new entrants, and your software should warn about that before you sign off a pay revision. ESIC's FAQ also says an employee whose wages cross the limit after a contribution period begins stays covered until the period ends, so the system must track contribution periods, not just the monthly figure.
For the broader context, read our HRMS for manufacturing companies and top payroll software for manufacturing guides.
Attendance for workers without email
A blue-collar worker attendance app has to work on a ₹8,000 Android phone, in low light, with poor signal, in Hindi or Marathi. Published capabilities:
- StaffKhata runs on Realtime Biometrics devices and says its Starter plan is free for up to 50 users and one biometric connection, for basic attendance only, with no payroll or mobile app. Its page claims it is trusted by 10,000-plus teams.
- PagarBook offers Lens, face attendance on an Android phone that it says works offline, and PagarBook iD, a dedicated face and fingerprint device listed at ₹18,000 plus GST as a one-time fee with no monthly rental.
- SalaryBox lists AI selfie attendance, geofence control and overtime automation, supports biometric devices, and sells a face recognition device in-app.
- Keka says it integrates 200-plus biometric devices on its manufacturing page, while its small-business page says 120-plus. Ask for the exact model list.
- Truein is built for contract and multi-site workers with face recognition, geofencing and offline punches that sync later; see our guide to face and geo-fence attendance apps.
Because pages disagree with each other even inside one vendor, the only reliable check is a pilot with your own machines at your own gate.
Contract workers: who pays, who files
The handbook's contract-labour rules explain why the ledger matters. The principal employer is liable to pay contract workers if the contractor does not pay or underpays. The Ministry's FAQs add that contract labour is covered by gratuity paid by the contractor after five years of continuous service at 15 days' wages per completed year, and that a fixed-term employee becomes eligible for gratuity after one year under the contract.
That leaves three payroll set-ups:
- You pay workers directly and carry the compliance. Choose a payroll tool with contract-worker categories and registers.
- A contractor pays and you verify. You need contractor-wise attendance and proof of PF and ESI deposits. Truein markets contract-worker attendance for this reason.
- An outsourced provider runs payroll. TankhaPay's page says its experts manage PF, ESI, professional tax and TDS, and BetterPlace describes a lifecycle platform that covers hiring, verification, onboarding, attendance and payroll, plus managed contractual staffing across 500-plus cities. Both are vendor descriptions; neither page published prices.
factoHR lists a separate "For Blue Collar" plan with pricing on request.
What 120 workers cost on published prices
All figures are from vendor pricing pages (checked October 2026) and the arithmetic is ours; taxes and add-ons are excluded and scope differs.
| Option | Published pricing | Monthly cost for 120 workers |
|---|---|---|
| StaffKhata Growth | ₹0.50 per user per day (payroll, geo-fencing, overtime, shift roster) | About ₹1,800 on a 30-day month |
| SalaryBox Business | As we read the page: ₹2,700 a month plus ₹67.5 per user per month on quarterly billing | ₹10,800 |
| Pocket HRMS Standard | ₹2,995 a month for 50 employees, ₹60 each beyond, billed annually | ₹7,195 |
| Kredily Professional | ₹1,749 a month for 25 employees, ₹70 each beyond | ₹8,399 |
| greytHR Growth | ₹4,495 a month for 50 employees, ₹85 each beyond | ₹10,445 |
| factoHR Core | ₹4,999 a month for 50 employees, ₹99 each beyond, billed yearly | ₹11,929 |
| Truein Time Capture | ₹250 per user per year plus ₹69,000 base | About ₹8,250 (attendance only) |
| Keka | Rupee prices not published | Quote needed |
StaffKhata's per-day pricing is the lowest on paper, but its page does not say how it counts days for a month or whether a worker who is absent is billed, so confirm the billing unit. Our guide to Keka vs greytHR and the free payroll software guide help calibrate small-team options, and the payroll software category lists more.
A rollout plan for the first month
- Week 1: cleanse the workforce list. Separate permanent, fixed-term, contract and daily-wage workers. Collect Aadhaar-linked bank details and UAN where they exist.
- Week 2: fix the wage rules. Write down wage period, overtime divisor, shift allowances and deductions. Check deductions against the 50% limit.
- Week 3: connect attendance. Test every gate device and the mobile route.
- Week 4: run a parallel payroll. Compare per-worker net pay with your register.
- Month 2: switch on bank payouts and share payslips through the worker app.
Who should look elsewhere
- Staffing companies with thousands of deployed workers need billing and client-wise margin tools; look at Zoho Recruit for Staffing or specialised staffing suites, and read about payroll for security and facility firms.
- Large multi-plant groups should compare enterprise suites such as Darwinbox; see the Darwinbox vs Workday guide.
- A unit with fewer than ten workers may not trigger ESI at all and can run a free tool.
FAQs
Which factory employee HR software is best in India?
It depends on size and machines. Keka suits plants that want overtime, night allowance and shift premium calculated from punches, StaffKhata and SalaryBox suit small units on a budget, and BetterPlace suits contract-heavy hiring. Test on one shift before buying.
What is the best blue collar worker attendance app?
Pick by how workers punch in. PagarBook Lens and SalaryBox use phones, StaffKhata and Keka connect biometric devices, and Truein adds face recognition with offline punches. Run all options at your gate for two weeks.
How do I run contract worker payroll in India?
Decide who pays them first. If a contractor pays, the principal employer is still liable for unpaid wages under the Ministry's handbook, so keep attendance and deposit proofs. Otherwise run them through your payroll in a separate category.
How is overtime calculated in payroll software?
Per the Ministry of Labour, overtime for covered employees is at least twice the normal wage rate. The software needs your divisor, rounding rule and the 8-hour and 48-hour limits. Always test a sample worker.
Is PF now mandatory for workers earning up to ₹25,000?
The Ministry of Labour says the wage ceiling for mandatory EPF coverage rose to ₹25,000 from 17 September 2026, for establishments covered by the Act. Check your coverage and enrol eligible workers.
Next step: get a free matched shortlist, or compare more in attendance software.
