W2 in the Indian staffing context (borrowing the term from the US payroll system) refers to a contractor who is formally employed by the staffing agency and placed at a client site. The agency acts as the employer of record, handling salary disbursement, PF/ESI contributions, TDS deductions, professional tax, gratuity provisions, and all other statutory employment obligations.
This is the most common arrangement in Indian IT contract staffing. The professional receives a regular salary from the agency, gets payslips, and has access to employer-provided benefits like health insurance and leave policies. From the client's perspective, the worker operates like a temporary employee without the client having any direct employment liability.
W2 arrangements provide the highest level of compliance certainty. Since the agency is the formal employer, all labor law requirements — including minimum wages, working hours, leave provisions, and termination procedures — are clearly the agency's responsibility. This reduces risk for both the client and the professional.
CVPRO automates W2 contractor management comprehensively — from offer letter generation and onboarding document collection through monthly payroll processing, statutory compliance filing, and exit formalities. The platform tracks each contractor's employment terms, rate revisions, contract extensions, and compliance status, providing agencies with a single dashboard to manage their entire payrolled contractor workforce.