How factoHR Helps Indian Companies Grow (2026)

Quick answer: factoHR is a good fit for Indian companies that want a free start and a clear upgrade path: per its pricing page (checked October 2026) it offers a free plan up to 20 employees, then Core at ₹4,999 per month, Premium at ₹5,999 and Ultimate at ₹6,999 for up to 50 employees. It also lists provident fund and gratuity management. Compare Pocket HRMS for lower entry pricing and Qandle for demo-led buying.

The free tier, and what you really get

Many HR vendors say "free" and mean a trial. factoHR's pricing page lists a Free plan at ₹0 forever for up to 20 employees, covering employee data, letter generation and payslip generation. That is useful for a very young company: you can issue offer letters and payslips from a proper system without a purchase order.

It is also deliberately limited. There is no attendance, leave or payroll processing in the free plan as listed, so think of it as a record-keeping and documents tool. The moment you want leave and attendance, you are on a paid plan.

The paid ladder

Add-ons listed: Selfie Punch, Timesheet, the Fia AI chatbot, and a recruitment module. factoHR also mentions Startup and blue-collar plans on request.

The point worth noticing is that payroll and attendance are in the cheapest paid tier. That makes Core a sensible first step for a 30 to 50 person business.

What factoHR claims about itself

On its homepage, factoHR says that "4000+ Businesses Trust factoHR" and cites 2.7 million active users. It also states "87% Increase in HR Productivity", "40% Fewer Employee Queries to HR" and "50% Time Saved in Payroll Processing". These are factoHR's own marketing claims; the methodology behind them is not published on its website, so don't treat them as guaranteed outcomes. If a figure matters, ask the vendor to show how it was measured and for a reference from a company like yours.

The feature other HRMS tools skip: retirement funds

The homepage lists a retirement benefits section: provident fund management, benevolent fund, superannuation fund, pension management, general provident fund, unexempted provident fund and gratuity calculation. For most small companies this is irrelevant. For companies that run their own PF trust, or that offer superannuation, it can be the deciding feature, because generic HRMS tools often leave this to spreadsheets. Check with your CA what applies to you and ask factoHR to demonstrate it using your own policy.

Workflow changes you can expect

Onboarding and letters. Letter generation and onboarding are in every plan, including the free one for letters. The weekly "can you send me my appointment letter" message disappears.

Face-recognition attendance. The Core plan lists AI face recognition. For offices with shared machines or buddy punching, this reduces disputes.

Multi-entity management. Core lists this too, which suits groups running two or three firms from the same head office.

Geo-fence and expense. Premium adds these, so field teams punch in only from allowed locations and claim travel in the app.

Appraisals. Performance management sits in Ultimate. If you run annual reviews, price that tier explicitly.

A worked cost example

Using only the published numbers: a 70-person company on Core pays ₹4,999 for the first 50 plus 20 extra at ₹99 (₹1,980), so ₹6,979 per month, and the extra-employee charge is billed yearly. On Premium: ₹5,999 + 20 × ₹119 (₹2,380) = ₹8,379. This is our arithmetic. Ask factoHR how it treats taxes and mid-year headcount changes.

When to choose something else

• You need only attendance. ubiAttendance and Truein focus entirely on punching.
• You want the lowest entry price for 50 staff. Pocket HRMS lists Standard at ₹2,995 for up to 50 employees on its website.
• You want performance and recruitment bundled at a mid price. Check Qandle, which advertises 40+ modules, or Timelabs.
• You are above a few hundred employees with complex structures. Look at enterprise vendors.

For a three-way price comparison, see factoHR, Pocket HRMS and Kredily compared.

Rollout plan for a 40-person company

1. Day 1 to 3. Start on the free plan if you want to look around, or Core if you need payroll. Add company details and entities.
2. Day 4 to 10. Import employees and salary structures. Verify every PAN, UAN and bank account.
3. Day 11 to 20. Switch on attendance and leave with the mobile app. Use face recognition at one site first.
4. Day 21 to 30. Parallel payroll run, then retire the spreadsheet. Record what you learned for the next cycle.

What to ask the vendor

• Is there a minimum contract period?
• What is billed yearly versus monthly?
• Which statutory forms does payroll generate?
• Is implementation support included?

When to move up from the free plan

The free plan is a good parking place, but it is not a destination. These are the triggers that tell you to pay.

• You are issuing payslips by hand more than once a month. Payroll processing is in the paid tiers.
• You have disputes over attendance. Attendance and leave are not in the free plan as listed.
• You cross 20 employees. The free plan stops at 20.
• A client or auditor asks for records. Structured onboarding and reports matter at that point.

Before upgrading, export your employee list and check it. Free plans are where messy data accumulates.

A founder's checklist for the first HR system

If you are buying your first HR software, a short list prevents regret.

1. Write down what hurts. Is it payslips, leave disputes, or compliance? Buy for that.
2. Count employees honestly. Include contractors if the plan counts them.
3. Decide who owns it. One named person, with a backup.
4. Plan for headcount. Calculate the bill at your expected headcount in twelve months using the per-extra-employee rates.
5. Check the exit. Confirm you can export all records.
6. Test on a phone. Employees will use it there.
7. Keep your CA involved. Show payroll output to your accountant before the first live run.

These steps cost nothing and avoid the two most common failures: buying a tool nobody owns, and buying a tool that does the wrong job well.

Questions the free plan should answer

Because the free plan costs nothing, use it to settle questions before paying. Can you generate the offer letter template you actually use, with your logo and clauses? Does the payslip format match what your employees are used to, and does your accountant accept it? Can you import your current employee list without manual retyping? Is the interface understandable to the person who will use it daily, not just to the owner? If the answers are yes, moving to Core is a low-risk step; if not, you have lost nothing but an afternoon.

One more point for founders: write down your own definition of success before you start, for example payslips issued on the last working day with zero corrections, and leave balances visible to every employee. Review it after the first full payroll cycle. If the tool meets it, expand; if not, you have clear evidence for the vendor or for a switch.

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