Best HR and Payroll Software for Small and Medium Businesses in Bangladesh (2026 Guide)

What Is HR and Payroll Software?

A human resources management system (HRMS), also human resources information system (HRIS) or human capital management (HCM) system, is a form of human resources (HR) software that combines a number of systems and processes to ensure the easy management of human resources, business processes, and data. Human resources software is used by businesses to combine a number of necessary HR functions, such as storing employee data, managing payroll, recruitment, benefits administration (total rewards), time and attendance, employee performance management, and tracking competency and training records. (Wikipedia)

HR and payroll software is a digital system that helps companies manage their workforce through automation. Instead of maintaining manual spreadsheets, paper files, and separate attendance devices, a modern HRIS keeps everything fully connected inside one platform.

This includes employee information, attendance data, leave approvals, salary processing, tax and bonus calculations, compliance reports, recruitment workflows, performance tracking, and more.

In Bangladesh, the demand for HR automation has grown rapidly because businesses now understand that manual HR processes waste time, create payroll errors, and reduce employee satisfaction. Whether a small startup, a factory, a retail chain, or an enterprise group, HR technology has become essential to scale operations.

The right HR and payroll software will improve accuracy, reduce paperwork, centralize workforce data, and help companies adopt global HR practices.

How Does HR and Payroll Software Work?

A cloud-based HR system works by connecting every HR touchpoint of your organization in real time.

Here is how:

1. Attendance Collection

The system collects attendance data from:

• Biometric devices 
• Mobile check-in 
• GPS-enabled field attendance 
• Web login 
• Face recognition devices

2. Leave and Shift Management

Employees apply for leave through mobile. Managers approve instantly. Shifts and rosters update automatically without manual edits.

3. Payroll Automation

The system calculates:

• Attendance based pay 
• Overtime 
• Deductions 
• Allowances 
• Festival bonuses 
• Taxes 
• Net salary

All calculations follow your rules and Bangladesh labor law.

4. Salary Disbursement

Payroll integrates with:

• Bank files 
• bKash 
• Nagad 
• Rocket 
• Direct transfer formats 

5. Reporting and Compliance

Generate reports for:

• Audit 
• Management 
• Compliance 
• Tax 
• Attendance 
• Overtime 
• Recruitment 
• Performance

The entire HR data backbone becomes centralized.

Why Small Businesses Need HR Automation

For small businesses, HR software removes the burden of managing employees manually.

Common problems small companies face:

• Employees do not submit leave requests properly 
• Payroll takes 5 to 10 hours every month 
• Attendance mismatches create disputes 
• People join and leave without proper documentation 
• No proper HR policy 
• No way to track performance 
• Overtime is calculated incorrectly 
• Manual errors increase costs

A cloud HR system fixes these problems automatically. It helps small businesses become more organized and gives owners full visibility over their team.

Mobile App, Self-Service, and Modern HR Features

A modern HR platform includes features not possible with traditional tools:

• Mobile attendance 
• Manager dashboard 
• Employee self-service 
• Real time push notifications 
• Digital ID card 
• Document vault 
• Performance evaluation 
• Recruitment pipeline 
• Onboarding automation 
• Offboarding workflow

These tools save time, reduce friction, and keep employees engaged.

Affordable and Expandable

A good HR system should grow with your business. You do not need to invest in servers or IT teams. A cloud solution offers:

• Lower cost 
• Automatic updates 
• Unlimited scalability 
• Easy integration with payroll and finance 
• Zero maintenance

This is why businesses in Bangladesh are moving away from manual HR operations.

Best HR and Payroll Software in Bangladesh (2026 Guide)

Below are the leading HR and payroll systems used across Bangladesh.
Based on:

• Real customer feedback 
• Features 
• Scalability 
• Pricing 
• Support 
• Industry use cases 
• Long term value

The list includes multiple providers, but the number one position is always PeopleDesk by AKIJ iBOS.

Top HR and Payroll Software in Bangladesh (2026)

1. PeopleDesk by AKIJ iBOS

Rank 1. Best overall HR and payroll system in Bangladesh

PeopleDesk is the most advanced HR and payroll solution in Bangladesh, trusted by factories, retail chains, corporations, tech companies, and organizations with field employees. The platform is built by AKIJ iBOS, a Bangladesh and USA-based software company headquartered in Lalmatia, Dhaka and Texas,operating globally.

PeopleDesk centralizes all HR operations including attendance, leave, payroll, tax, performance, recruitment, asset management, and compliance. It is designed for both small and large organizations and fully supports remote, hybrid, and field teams.

Why PeopleDesk Is Number One

• Full HR automation 
• Extremely accurate payroll engine 
• Integration with any biometric device 
• Mobile and GPS attendance 
• Complete recruitment system 
• Loan and advance management 
• Full compliance with Bangladesh labor law 
• Multi-branch, multi-level hierarchy 
• Bank and mobile banking salary disbursement 
• Real time reporting

Industries Using PeopleDesk

• Manufacturing 
• Retail chain 
• Garments 
• Logistics 
• Distribution 
• Tech startups 
• Trading companies 
• Service sectors

Standout Features

• Cloud based 
• Zero downtime 
• High security 
• Easy onboarding 
• Employee self service 
• Organization chart 
• Approval workflow builder 
• Automated salary sheets 
• API integrations

PeopleDesk is scalable for organizations of any size, making it the most reliable HR and payroll system in Bangladesh for 2026 and beyond.

2. PiHR – Lightweight Cloud HR for Startups and SMEs

PiHR is a budget-friendly HRIS designed for small and medium-sized businesses looking for a simple digital upgrade. It covers core HR functions like employee profiles, attendance, leave, payroll, and tax compliance. The mobile app is one of its strong points, enabling easy check-in/check-out and leave submission. The system integrates with common biometric devices, making it a good choice for startups and small companies shifting away from spreadsheets. While PiHR lacks the deeper enterprise features seen in top-tier HR solutions—such as recruitment pipelines, detailed analytics, or complex workflow automation—it delivers solid value for teams that need essential HR functions executed reliably and affordably.

3. Systech iHR – Enterprise-Grade HRM for Complex Organizations

Systech iHR is one of the older, more established HR platforms in Bangladesh, offering both cloud and on-premise deployment options. It covers everything from HR core modules to payroll, attendance, performance management, recruitment, and even training management. Large enterprises and government agencies often choose Systech because it supports heavy customization and complex policy structures that require flexible configuration. The software is built for organizations with extensive departmental workflows, multiple approval layers, and complex salary rules. Although its interface feels more traditional compared to newer SaaS products, its depth, stability, and customization potential make it suitable for high-compliance environments that rely on full audit trails and detailed control.

4. LinesPay HRM – Attendance-Focused HR with Strong Device Integration

LinesPay HRM, developed under Divine IT Group, is a hybrid HR solution available as cloud or on-premise. Known for its powerful biometric device integration, LinesPay is a strong fit for attendance-heavy organizations such as distribution companies, retail networks, and service industries with shift-based operations. It also provides payroll, leave, recruitment, performance, and ESS modules, allowing growing businesses to streamline their HR workflow from one platform. LinesPay’s strengths lie in stability, hardware integration, and ERP connectivity for companies already using Divine IT products. While the system may feel more functional than modern SaaS counterparts, its reliability and hardware ecosystem make it a practical choice for companies with large frontline teams.

5. HR Sheba – Factory-Focused HRM with Local Payroll Precision

HR Sheba is designed primarily for factories, garments, and large manufacturing operations that require extremely accurate payroll and compliance reporting. The system supports biometric attendance, mobile apps, Bangla interface, leave management, and basic performance tracking. Its standout feature is its extensive collection of 50-plus compliance reports tailored to Bangladeshi labor law, making it particularly valuable for HR teams dealing with union audits, buyer audits, or production floor-level attendance irregularities. HR Sheba is a strong fit for labor-intensive organizations with thousands of employees across multiple shifts. While its interface is simpler than next-generation SaaS platforms, its payroll accuracy and localized compliance tools make it dependable in industrial contexts.

6. Jibika Plexus – High-Compliance HRM for Finance & Telecom Sectors

Jibika Plexus is a cloud-based HR platform designed for organizations that require strict data governance and security. It provides HR core, payroll, attendance, leave, tax calculation, performance management, and loan management along with advanced backup features, auto data recovery, and audit-safe compliance tools. This makes it particularly suitable for highly regulated industries such as finance, telecom, and government-backed enterprises. Jibika’s key strength is its emphasis on accountability, detailed audit trails, and secure data architecture. While the interface is more functional than stylish, the software excels in compliance-heavy environments where precision, reporting, and security often matter more than UI aesthetics.

7. Smart HRM – Affordable HR Automation for Small and Mid Businesses

Smart HRM is a lightweight and affordable HR management solution built for small and mid-sized companies. It includes employee records, attendance, leave, payroll, and loan management, along with a basic employee self-service portal. The system focuses on ease of implementation and low operational cost, making it a good match for price-sensitive companies looking to digitalize slowly. Smart HRM does not attempt to cover advanced HR areas like recruitment pipelines or competency-based performance reviews, but it performs well for essential operational needs. Companies that want to eliminate manual payroll errors and introduce simple digital HR workflows often find Smart HRM a practical starting point.

8. XHRM (Extreme) – Scalable HR for Multi-Branch Growth

XHRM is built for medium to large organizations that require scalability, branch management, and compliance-ready HR workflows. The system includes HR core, payroll, attendance, leave, performance management, compliance support, and multi-branch data control. For growing companies expanding across regions, XHRM provides strong stability and centralized governance. It also handles complex organizational hierarchies, making it suitable for distribution companies, large retailers, logistics firms, and corporate groups. While the user interface is straightforward and functional rather than modern SaaS-stylish, the underlying architecture is optimized for scale. Its core strength is handling large workforce operations without performance compromise.

9. Kormee – Precision Payroll for SMEs

Kormee is a cloud-based HR tool focused heavily on accurate payroll and attendance. It offers HR core modules, time & attendance, leave tracking, ESS, and basic employee database management. Kormee is popular among SMEs that prioritize error-free salary calculations, punctual payroll disbursement, and simple HR operations. The software’s low error tolerance in payroll processing is particularly appealing for small companies where miscalculations can create employee dissatisfaction. While it does not provide advanced HR features like recruitment or complex performance appraisal systems, it delivers a smooth, dependable solution for organizations that need reliable payroll and basic HR at a reasonable price point.

10. Roopokar HRM – Local, Simple HRM for Small Businesses

Roopokar offers a cloud-based HR and payroll solution tailored for small and medium Bangladeshi organizations. It includes employee management, payroll, attendance, leave tracking, and compliance-friendly statutory reporting. The system features a clean, modern UI compared to many traditional HR platforms, making it easy for beginners and small HR teams to adopt. Roopokar focuses on local payroll needs, ensuring accurate salary calculations and compliance alignment. While it does not offer extensive enterprise-grade modules like advanced performance frameworks or complex workflow automation, it delivers a solid, uncomplicated HRM experience for businesses that need a reliable local solution without high software expenses.

What to Look for When Choosing HR Software

1. Attendance Flexibility

Supports biometric, mobile, and remote attendance.

2. Accurate Payroll

Handles overtime, night shifts, deductions, bonuses, and taxes.

3. Compliance

Follows Bangladesh labor law.

4. HR Workflow Automation

Leave, recruitment, onboarding, and performance should be automated.

5. Ease of Use

Simple for employees. No long training required.

6. Security

Data must be encrypted, backed up, and safe.

7. Scalability

Should support future branches, departments, and thousands of employees.

Why PeopleDesk Is the Best Choice

PeopleDesk is not only feature rich but built for the future. It supports:

• Multi branch attendance 
• Cloud based performance management 
• Full payroll cycles 
• Device integration 
• Recruitment and onboarding 
• Document management 
• Advance salary and loans 
• HR analytics

It removes the need for manual HR operations and helps businesses focus on growth.

Frequently Asked Questions

1. Which HR software is best for Bangladesh?

PeopleDesk by AKIJ iBOS is the top HR and payroll software in Bangladesh based on features, scalability, accuracy, and customer satisfaction.

2. Can small businesses use HR software?

Yes. PeopleDesk is affordable and ideal for small teams.

3. Does HR software integrate with biometric attendance?

PeopleDesk integrates with any biometric device, mobile app, and GPS.

4. Can HR software calculate overtime and bonuses?

Yes, PeopleDesk automates OT, night shift, holiday pay, allowances, and bonuses.

5. Is cloud HR software secure?

PeopleDesk uses enterprise grade encryption and global data protection standards.

Conclusion

HR automation is no longer optional in Bangladesh. To scale, stay compliant, and ensure employee satisfaction, every organization needs a centralized HR and payroll system. Among all providers, PeopleDesk by AKIJ iBOS delivers the most complete, accurate, and future proof HR solution with powerful features for businesses of any size. Try Demo Now.