Cameroon Employer of Record & Payroll
Africa Deployments Cameroon offers our clients Employer of Record (EOR) services covering all of the regions within. We offer full-time employment or fixed terms contracts based on your requirements in Cameroon for locals or expatriates. ADS will take care of the work permit under our umbrella and will issue local work contracts to your contractors. We will also advise our client’s on best Human Resource (HR) practices when setting up the employee’s locally in Cameroon.
ADS takes care of the local tax & PAYE remittances to the Revenue Services on a monthly basis ensuring that they are fully compliant with the law. We will also ensure that their salaries are paid on time monthly and issue them with their pay slips. In addition to our services, we can offer you the employee in Cameroon, Medical, Disability, Life, and Workmen’s Compensation Insurances.
Cameroon, officially the Republic of Cameroon, is a country along the Gulf of Guinea and the Atlantic Ocean.
Cameroon is in Central Africa; however, people often think of it as a West African country due to its position on the map.
Cameroon is home to ±27 million people and has one of the highest literacy rates in Africa.
Being one of the wettest countries on earth with some of the most fertile lands, Cameroon produces cotton, cocoa, coffee, bananas, and oil-seeds.
Known as “Africa in miniature” because of its geographical and cultural diversity, Cameroon is also famous for having one of three waterfalls in Africa that empties directly into the ocean, The Chute de La Lobé.
What is the main language spoken in Cameroon:
Cameroon has 2 official languages, English and French.
French is the most widely spoken (56% of the population), followed by English (23%), and there are 8 “French” regions and 2 “English” regions across Cameroon.
Being a multilingual country, there are ±260 national languages overall with many people speak Cameroonian Pidgin English, also called Kamtok, as a lingua franca.
What type of employment contracts can you offer in Cameroon:
Through our employer of record (EOR) solutions in Cameroon, we can offer the following types of employment contracts:
- Fixed Term
- Indefinite term
Contracts and Offer Letters must:
- Be in writing
- Be in the official local language and the local currency
- Include salary/compensation, benefits and termination requirements
Full-time Employees:
- Have specific working terms and conditions
- Can be eligible for organizational perks and/or other benefits
- Tend to be more focused [as only one employer] and familiar with the specific business – due to e.g. ongoing company training etc.
- Probationary period is 6 months [standard and maximum] – unless managers / executives normally up to 8 months’ probation
- Fixed-term contracts generally may not exceed 2 years in Cameroon, and are once-renewable.
WHAT INCOME IS TAXABLE IN Cameroon:
Any income earned in the form of cash, wages, salary, overtime, leave pay or payment in lieu of leave, commissions, gratuity, bonus, or any amount that has benefited the employee. All income will be taxed in accordance with the law and the final payroll issued monthly.
What income is exempt from taxes in Cameroon:
Life Insurance.
Standard working hours: Overtime to be paid in Cameroon?
In Cameroon, standard working hours are typically 40 hours per week. Overtime payment rates vary and are typically higher than regular wages, as outlined in the Labor Code.
Mandatory contributions in Cameroon?
Employee
| Contribution Type | Contribution Rate | Threshold |
|---|---|---|
|
Social Security Fund (CNaPS) |
2.4% |
36,000 XAF |
|
National Health Insurance Fund (CNAM) |
2% |
N/A |
|
National Pension Fund (CNAPS) |
1% |
N/A |
Employer
| Contribution Type | Contribution Rate | Threshold |
|---|---|---|
|
Social Security (CNaPS) |
5.4% |
36,000 XAF |
|
National Health Insurance (CNAM) |
2% |
N/A |
|
National Employment and Vocational Training Fund (FNEF) |
1% |
N/A |
Social
| Contribution Type | Employers | Employees |
|---|---|---|
|
Social Security (CNaPS) |
5.4% |
2.4% |
|
National Health Insurance (CNAM) |
2% |
2% |
|
National Employment and Vocational Training Fund (FNEF) |
1% |
1% |
What is the Maternity and Paternity policy within Cameroon:
- Female employees in Cameroon typically have a right to 14 weeks of paid maternity leave.
- They can choose to take 4 weeks of leave before the birth, or 6 weeks if their doctor advises confinement.
- The National Social Insurance Fund is responsible for paying for the maternity leave.
-
Fathers can use their 10 days of paid family leave for paternity leave.
What type of leave is allowed in Cameroon:
- 1 and half days of leave per month.
- 5 days paid per year
Do I need to pay a mandatory bonus annually OR is it discretionary in Cameroon:
In Cameroon, employers are required by law to pay a mandatory end-of-year bonus to their employees, which is equivalent to one month’s salary. This bonus is usually paid out in December and is considered part of the employee’s compensation. Therefore, it is not discretionary and must be paid annually.
What Gratuity / Severance payments do you need to provide for Cameroon:
Before employing your employees in Cameroon, it is always advisable to understand your risk from an employment perspective. Unfortunately, nothing is guaranteed and in the event that you need to terminate for a valid reason, we always suggest that you know what you are in for in the unlikely event you need to terminate.
Below are the types are terminations in Cameroon:
Notice period:
- Calculated based on length of service and employment type
- See calculation below*
- Prior written notice required
- For indefinite term contracts, during the notice period, the employee is generally entitled to 1 day off per week to look for another job
Severance [economic reasons]:
- Employees generally entitled to severance where a minimum of 2 years employment has been completed
- Severance pay amount is determined overall by the Minister in charge of Labour
- Severance pay usually corresponds to a percentage of the monthly overall wages per year of service
- *Severance pay is set according to the length of service as follows:
- 20% of monthly wage per year during the 1st 5 years of employment
- 25% of monthly wage per year from the 6th to the 10th year of employment
CAN YOU GIVE FRINGE BENEFITS IN Cameroon:
Yes you can but keep in mind that Fringe Benefits will be subject to employee PAYE tax. Only benefits that cannot be converted to cash will not be subject to tax. If the employer covers some of the employees expenses i.e. mobile phone then it must be subject to PAYE tax and either the employer will cover this portion for the employee or the employee will bear the PAYE tax.
Mandatory Probation period of Cameroon:
- The probation period in Cameroon generally cannot be longer than six months, including any renewals.
- Managers may have a probation period of up to eight months.
- The probation period can be extended once with the employee’s written approval before the initial trial period ends.
What are the Corporate and VAT / Sales tax rates in Cameroon:
Corporate Tax Rates: 27.50% [in general]
Side note: Corporate Tax Rates: 33% for companies with a turnover above 3 billion Communauté Financière Africaine francs (XAF)
VAT / Sales Tax Rates: 19.25% [on most goods and services]
Public Holidays in Cameroon:
- January 1 - New Year's Day
- February 11 - Youth Day
- April 7 - Good Friday
- April 22 - Djouldé Soumaé
- May 1 - Labour Day
- May 18 - Ascension Day
- May 20 - National Day
- June 29 - Eid Al Adha
- August 15 - Assumption Day
- September 27 - Birthday of Prophet Muhammed
- December 25 - Christmas Day
What Industries we support in Cameroon:
- Non-Governmental Organization’s (NGO) / Non- profit
- Engineering & Construction
- Government / Development Agencies
- Oil & Gas
- FMCG & Manufacturing
- Private Equality, Finance, Insurance & Banking
- Mining
- Agriculture
What Double Tax Treaties are in place in Cameroon:
The information provided above is for an “informative decision” and may change at any given time without prior notice. We always suggest speaking to one of our Sales Consultants before engaging in country.
