
HRMS Buyer’s Checklist for India: 12 Questions to Ask in 2026
Buying an HRMS in India in 2026 is harder than comparing feature lists. The four Labour Codes have been in force since 21 November 2025, and the Digital Personal Data Protection (DPDP) Rules are being phased in. Your HR system now has to handle both. This checklist gives you 12 questions to put to any vendor, including us, with a simple way to score the answers.
Table of Contents
Disclosure: we build OXHRM, so this blog is not neutral. We have kept the checklist vendor-agnostic and sourced every legal point to a government page, so you can use it to test us as well.
Key Takeaways
- Start from your own process gaps (attendance, leave, payroll, records), not from a vendor’s feature count.
- The Labour Codes changed how wages are defined and how quickly they must be paid. Ask how the payroll engine handles the new definition.
- Employee records are personal data. Ask about access control, consent notices, breach handling and data export.
- Compare total monthly cost per user, including add-ons and GST, not just the headline price.
- Run a pilot on your real data before you commit.
In this guide
- Start with your process gaps
- The 12-question checklist
- What the Labour Codes mean for your HRMS
- Employee data and the DPDP Rules
- Comparing prices honestly
- How to score and pilot vendors
- How OXHRM maps to the checklist
- FAQ
- Sources
Start with your process gaps, not feature lists
Write down the three or four things that cost your team the most time each month. For most small and mid-sized Indian teams that is some mix of attendance corrections, leave balances kept in spreadsheets, payroll prepared by hand, and employee documents scattered across email.
Then rank them. An HRMS that fixes your top two problems well is a better purchase than one that ticks fifty boxes you will never open.
The 12-question HRMS checklist
Use this table in vendor calls. Ask each question, note the answer, and ask to see it in the product rather than in slides.
| # | Area | Question to ask |
|---|---|---|
| 1 | Employee records | Can we hold profiles, documents, onboarding and exit in one place, with role-based access? |
| 2 | Attendance | Which check-in methods work (mobile, GPS or geo-fence, biometric, web)? What happens with poor connectivity? |
| 3 | Shifts and overtime | Can it model our shifts, rosters and overtime rules, with manager approval? |
| 4 | Leave | Can we configure our leave types and carry-forward rules, and do balances update automatically? |
| 5 | Payroll | Can we build our own salary structure, and how are payslips and salary disbursement handled? |
| 6 | Statutory setup | Can the vendor walk us through PF, ESI, TDS and state-level settings for our states? |
| 7 | Labour Codes | How is the product being updated for the Codes (see the next section)? |
| 8 | Employee self-service | Can staff see payslips, apply for leave and update details on their own phones? |
| 9 | Reports and audit trail | Can we export attendance, leave and payroll reports, and see who changed what? |
| 10 | Data protection | How is employee data secured, and how do we get it out if we leave? |
| 11 | Pricing | What is the all-in monthly cost per user, including add-ons, minimums and GST? |
| 12 | Support and onboarding | Who migrates our data, who trains our managers, and what support hours do we get in writing? |
Questions 5, 6 and 7 deserve extra time. Payroll errors are the ones employees notice first.
What the Labour Codes mean for your HRMS
The government made the four Labour Codes (Wages, Industrial Relations, Social Security, and Occupational Safety, Health and Working Conditions) effective on 21 November 2025, replacing 29 earlier Central labour laws. The table below lists points that touch HR software directly. It is not legal advice, and rules can differ by state and sector, so confirm with your compliance adviser.
| What changed | What to check in an HRMS |
|---|---|
| “Wages” now means basic pay, dearness allowance and retaining allowance, and if other payments exceed 50% of total remuneration (or another notified percentage), the excess is added back (PIB factsheet). | Can you restructure salary components and see PF, gratuity and bonus effects before you run payroll? |
| Timely payment and no-unauthorised-deduction rules, earlier limited to employees earning up to ₹24,000 a month, now apply to all employees (PIB factsheet). | Can it flag late payroll runs and keep a record of every deduction? |
| Appointment letters are mandatory for all workers (PIB, 21 Nov 2025). | Does onboarding generate and store letters per employee? |
| Fixed-term employees become eligible for gratuity after one year of continuous service (PIB, 21 Nov 2025). | Can it track employment type and service length per employee? |
| For IT and ITeS workers, PIB lists salary release by the 7th of every month (PIB, 21 Nov 2025). | If you are in this sector, can you schedule and monitor a payroll cut-off date? |
| ESIC coverage is extended pan-India, voluntary for establishments with fewer than 10 employees (PIB, 21 Nov 2025). | Can ESI be switched on per establishment as your headcount changes? |
PIB also notes that during the transition, relevant provisions of the earlier Acts and rules continue to apply until the new rules are framed. Ask each vendor how they track that, and who tells you when a setting must change.
Employee data and the DPDP Rules
An HRMS holds some of the most sensitive records in your company: identity documents, bank details, attendance and location data. The PIB overview of the DPDP Rules, 2025 (17 November 2025) describes an 18-month phased compliance timeline. It also lists the duties that matter to HR teams:
- A clear, standalone consent notice that explains the specific purpose of data collection.
- Telling affected people about a personal data breach without delay.
- Responding to access, correction and erasure requests within 90 days.
- Penalties of up to ₹250 crore for failing to maintain reasonable security safeguards.
What to ask vendors: how is access controlled by role, is there an audit log, where is data stored, how do you handle an erasure request, and what is your breach process? Whether a particular HR use falls under a consent requirement or another lawful basis is a question for your legal counsel, not your software vendor.
Comparing prices honestly
Per-user pricing looks simple until add-ons and tax appear. Build a one-line comparison for your real headcount: base plan, extra users, the add-ons you need (payroll, biometrics, monitoring), then GST. Ask whether a minimum number of seats applies and what annual billing changes.
If you are tempted to build your own HR software instead, that is a different cost curve. Eoxys IT Solution, the company that builds OXHRM, has a decision guide on building versus buying AI hiring software, and the same logic applies to HR tooling in general.
How to score and pilot vendors
- Weight the 12 questions from 1 to 5 based on your own pain points.
- Score each vendor from 0 to 5 per question, from live demos and not slides.
- Pilot with real data: load one department, run one attendance cycle and one test payroll, and have two managers approve leave from their phones.
- Check references from companies of your size and sector.
- Read the contract for data export, notice period and price-change terms.
How OXHRM maps to the checklist
This is what oxhrm.com says as of 12 October 2026. We list it so you can test each line in a trial.
| Checklist area | What OXHRM’s site lists |
|---|---|
| Employee records (1, 8) | Core HR: employee database, document management, onboarding and offboarding, self-service portal, org chart, role-based access |
| Attendance, shifts, leave (2-4) | Attendance: GPS and geo-fencing, mobile selfie check-in, biometric integration, shift management, overtime tracking, leave workflows |
| Payroll (5) | Pricing page lists advanced payroll processing in the Growth plan and an automated payroll add-on (UPI or bank transfer disbursement and payslips) |
| Time and projects | Time Monitoring and Task Manager modules |
The pricing page lists a free plan for up to 20 users (geo-fenced attendance, basic leave management, mobile app and self-service portal) and a Growth plan at ₹1,999 per month for up to 40 users, then ₹49 for each additional user. Its own example for 55 users is ₹2,734 before 18% GST, ₹3,226 with GST. Add-ons are priced per seat. See the current numbers on the pricing page, since prices can change.
For PF, ESI, TDS and state-level setup (question 6), ask for a walk-through for your own states during your trial, as you would with any vendor.
Test the checklist on OXHRM. Start free for up to 20 employees, review plans and pricing, or write to support@oxhrm.com with your headcount and states.
FAQ
What is an HRMS and who needs one?
An HRMS (human resource management system) is software that keeps employee records, attendance, leave and payroll in one place. Teams usually look for one when spreadsheets start causing payroll mistakes or when headcount passes what one HR person can track by hand.
How much does an HRMS cost in India?
It varies by vendor, user count and modules. Compare the all-in monthly cost per user, including add-ons and 18% GST. As one published example, OXHRM lists a free plan for up to 20 users and ₹1,999 per month for up to 40 users on its pricing page.
Do the new Labour Codes require changes to payroll?
They can. PIB describes a uniform definition of wages with a 50% add-back rule, and that affects PF, gratuity and bonus calculations. Ask your vendor and your compliance adviser how your salary structure is affected.
Is employee data covered by the DPDP rules?
Employee records are digital personal data, so you should treat your HR system as part of your data protection plan. The PIB overview lists breach notification, consent notices and a 90-day response time for data requests. Get legal advice on how it applies to each HR use.
Is a free HRMS enough?
A free plan can be enough for a small team that needs attendance, basic leave and self-service. Payroll, shift rosters and analytics usually sit in paid plans, so check what you need before you rely on the free tier.
Sources
- PIB, Ministry of Labour and Employment, “Government Makes the Four Labour Codes effective to Simplify and Streamline Labour Laws”, 21 Nov 2025: pib.gov.in
- PIB Factsheet, “Code on Wages, 2019 Safeguards Workers, Induces Growth, Empowers Women & Enhances Employment”, 23 Nov 2025: pib.gov.in
- PIB, MeitY, “A Citizen-Centric Framework for Privacy Protection and Responsible Data Use” (DPDP Rules, 2025), 17 Nov 2025: pib.gov.in
- OXHRM product and pricing pages, checked 12 Oct 2026: Core HR, Attendance, Pricing
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