HR software can cost anywhere from free to $25+ per employee per month. This guide cuts through vague "contact sales" pricing pages and ranks HR platforms by their real cost for small and mid-size businesses.
Disclosure: This article contains affiliate links. We may earn a commission at no extra cost to you when you purchase through our links.
Tier 1: Free HR Software
Zoho People Free $0 - 5 Users
Zoho People offers a genuinely free plan for up to 5 employees. You get employee database, leave management, time tracking, and basic attendance. For micro-businesses, this covers the essentials without paying a cent.
- Employees: Up to 5
- Features: Employee database, leave tracking, attendance
- Storage: 250MB
- Catch: 5-employee limit, no payroll
OrangeHRM Open Source $0 - Self-Hosted
OrangeHRM is a fully open-source HR system you can self-host for free. Employee management, leave, time tracking, recruitment, and performance reviews. No user limits. The catch is you host and maintain it yourself.
- Employees: Unlimited
- Features: Full HRIS, recruitment, performance
- Hosting: Self-hosted (PHP/MySQL)
- Catch: Requires technical setup and maintenance
Tier 2: Under $3/Employee/Month
Zoho People Essential HR $1.25/user/mo
At $1.25 per employee per month, Zoho People Essential HR is the cheapest paid HR software available. You get employee database, leave management, document management, and HR analytics. This is the price floor for paid HR.
- Employees: Unlimited
- Features: Database, leave, documents, analytics
- Integrations: Zoho ecosystem
- Price: $1.25/employee/mo billed annually
Freshteam Growth $1.20/user/mo + $71 base
Freshteam (now Freshworks HR) charges $1.20/employee plus a $71/month platform fee. For teams over 60 employees, this works out cheaper per head than most competitors. Includes hiring, onboarding, time off, and employee data.
- Hiring: Job postings, applicant tracking
- Onboarding: Document collection, checklists
- Time Off: Leave policies, approvals
- Price: $71/mo base + $1.20/employee/mo
Tier 3: $3-$10/Employee/Month
Gusto Simple $6/employee/mo + $40 base
Gusto Simple is the cheapest HR platform that includes full payroll. At $6/employee plus $40/month base, you get payroll, benefits administration, hiring tools, and employee self-service. For businesses that need HR plus payroll in one tool, Gusto is the cheapest complete solution.
- Payroll: Full-service, automatic tax filing
- Benefits: Health insurance, 401(k)
- Hiring: Offer letters, onboarding checklists
- Price: $40/mo base + $6/employee/mo
BambooHR ~$8/employee/mo
BambooHR does not publish exact pricing but reports from users put it around $8/employee/month for the Core plan. You get a polished HR platform with employee records, time off, reporting, and a great employee experience. More expensive than Zoho but significantly easier to use.
- Employee records: Comprehensive profiles
- Time off: PTO tracking and approvals
- Reporting: Custom reports and analytics
- Price: ~$8/employee/mo (contact for quote)
Complete Pricing Table
| Tool | Price/Employee/Mo | Free Tier | Payroll | Best For |
|---|---|---|---|---|
| Zoho People Free | $0 | 5 users | No | Micro-business |
| OrangeHRM | $0 | Unlimited | No | Self-hosted |
| Zoho People Essential | $1.25 | 5 users | No | Cheapest paid |
| Freshteam | $1.20 + base | Free tier | No | Hiring focus |
| Gusto Simple | $6 + base | No | Yes | HR + payroll |
| BambooHR | ~$8 | Trial | Add-on | Best UX |
Bottom Line
For free HR software, Zoho People covers the basics for up to 5 employees. The cheapest paid HR is Zoho People Essential at $1.25/employee. If you need payroll included, Gusto at $6/employee is the cheapest complete solution.
Building AI-powered HR automation?
corteX SDK powers autonomous HR agents with brain-inspired architecture.
Learn More - pip install cortex-ai