An HRMS (human resource management system) should do five jobs well: keep employee records, capture attendance, manage leave, run payroll with Indian statutory deductions, and let employees help themselves. Everything else is a bonus. Use the 25-point checklist below when you compare tools — and mark each one must-have, nice-to-have or not needed for your company before you sit through a demo.
New to the term? Start with what HRMS software is.
Why the checklist changed in 2026
Two things moved the goalposts:
- The four labour codes have been in force since 21 November 2025. Wage definitions, leave carry-forward, gratuity for fixed-term staff and settlement timelines all changed. An HRMS built around the old Acts will give you wrong numbers.
- Employees expect WhatsApp, not a portal. Payslips, leave approvals and shift changes are read on the phone. A self-service app nobody opens is not self-service.
HR, GPS attendance, shifts, leave, payroll, tax declarations, onboarding, engagement, projects and timesheets — one employee record behind all of it.
Start free See the demo1. Core HR (records and documents)
| # | Feature | Why it matters |
|---|---|---|
| 1 | Employee directory with custom fields | One source of truth for PAN, UAN, bank details, emergency contacts |
| 2 | Document storage with expiry alerts | Offer letters, ID proofs, contracts, visas |
| 3 | Org chart and reporting lines | Approvals route to the right manager automatically |
| 4 | Appointment / offer letter templates | Labour codes require an appointment letter for every employee — see our offer letter format |
| 5 | Role-based access | Managers see their team, finance sees salaries, nobody else does |
2. Attendance and time
| # | Feature | Why it matters |
|---|---|---|
| 6 | Mobile attendance with GPS / geo-fence | Field staff, sites and multiple branches |
| 7 | Shifts, rosters and night-shift rules | Factories, hospitals, retail |
| 8 | Biometric / device integration | If you already own machines, keep them |
| 9 | Overtime calculation | Overtime is paid at twice the ordinary wage rate under the Code on Wages |
| 10 | Regularisation requests | Missed punches fixed by approval, not by editing a sheet |
More detail: attendance and leave management system guide.
3. Leave
| # | Feature | Why it matters |
|---|---|---|
| 11 | Multiple leave types with accrual rules | EL, CL, SL, comp-off, maternity |
| 12 | Carry-forward caps and auto-encashment | Under the OSH Code, earned leave above 30 days carried forward must be paid out |
| 13 | Holiday calendars per location | Different states, different holidays |
| 14 | Leave encashment calculation | Uses your chosen 26- or 30-day divisor — see 26 or 30 days? |
4. Payroll and compliance
| # | Feature | Why it matters |
|---|---|---|
| 15 | Payroll driven directly by attendance and leave | No re-typing, no mismatch |
| 16 | PF, ESI, professional tax, LWF and TDS | Correct state-wise slabs and ceilings |
| 17 | 50% wage rule check | Under the labour codes, if allowances exceed 50% of total pay, the excess is added back to "wages" for PF and gratuity |
| 18 | Payslips and Form 16 | Delivered on WhatsApp or email, not printed |
| 19 | Full-and-final settlement | Wages must be paid within two working days of exit — use the F&F calculator |
| 20 | Bonus and gratuity calculation | Statutory bonus is 8.33%–20%; gratuity for fixed-term staff after one year — try the bonus calculator |
5. Employee lifecycle and engagement
| # | Feature | Why it matters |
|---|---|---|
| 21 | Onboarding and exit checklists | Laptop, access, documents — nothing missed (onboarding checklist) |
| 22 | Performance reviews / appraisal | Even a simple checklist method beats none |
| 23 | Recognition, polls and surveys | Cheap retention — see recognition programmes |
| 24 | Employee self-service app + WhatsApp alerts | Leave, payslips and shift changes where employees already are |
| 25 | Reports and exports | Headcount, attrition, attendance, salary register, statutory returns |
Must-have vs nice-to-have by company size
| Team size | Must-have | Can wait |
|---|---|---|
| Under 20 | 1, 6, 11, 15, 16, 18 | Performance, surveys, org chart |
| 20–100 | Add 2, 3, 7, 12, 19, 21, 24 | Advanced analytics |
| 100+ | All 25, plus API access and audit logs | — |
Five questions to ask in every HRMS demo
- "Show me payroll for an employee who joined mid-month, took two days' unpaid leave and worked overtime." Watch whether it is automatic.
- "How does the software apply the 50% wage rule?" If the answer is vague, the PF numbers may be wrong.
- "Can an employee apply for leave and download a payslip from WhatsApp?"
- "What happens to my data if I leave?" You should get a full export.
- "What is the all-in price per employee — including payroll, the app and GST?"
How MizUp BMS covers this list
MizUp BMS covers core HR, GPS attendance, shifts, leave, onboarding and exit checklists, engagement and tasks on the Starter plan (₹79/employee/month + GST, minimum 10 employees). Payroll driven by attendance is on Growth (₹129/employee/month + GST). Alerts go out on the official WhatsApp Business API. Compare it with the other tools in our best HRMS software in India roundup, or see BMS pricing.
Frequently asked questions
What are the main features of HRMS software?
Employee records, attendance, leave, payroll with statutory deductions (PF, ESI, professional tax, TDS), onboarding and exit, payslips, reports and an employee self-service app. In India, labour-code compliance and WhatsApp alerts are now expected too.
What is the difference between HRMS and payroll software?
Payroll software only calculates salary and deductions. An HRMS also holds employee records, attendance, leave, onboarding, exits and performance, and feeds that data into payroll so nothing is re-typed.
Which HRMS features matter most for a small company?
Mobile attendance, leave approvals, payroll from attendance, payslips and statutory reports. Performance and training modules can wait until you cross roughly 50 employees.
Does HRMS software need to change for the new labour codes?
Yes. Since 21 November 2025 the four labour codes are in force, so the software should handle the 50% wage rule for PF and gratuity, leave carry-forward caps, faster full-and-final settlement and appointment letters.
How much does HRMS software cost in India?
Most cloud HRMS tools charge per employee per month, typically from about ₹50 to ₹300 depending on whether payroll is included. MizUp BMS starts at ₹79 per employee per month plus GST.
