Cameroon Employer of Record & Payroll

Cameroon EOR

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, in the subregion of West Africa.

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 TYPE OF LEAVE IS ALLOWED:

  • Annual leave –  1 1/2 days of leave per month

  • 10 Public Holidays per annum as per Leave Law of Cameroon.

  • Sick leave – 5 days paid per year

  • Maternity leave –  leave be at least 14 weeks of which a period of six weeks compulsory leave should be after childbirth.

  • Paternity leave – 10 working days leave from work.

WHAT INCOME IS EXEMPT FROM TAXES:

Life Insurance

CAN YOU GIVE FRINGE BENEFITS:

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.

WHAT ARE THE EMPLOYER & EMPLOYEE CONTRIBUTIONS:

  • Family Allowance
  • For their joint personal welfare, employees are obligated to contribute to the National Social Insurance Fund (NSIF) at a particular rate calculated on the basis of their salaries. This contribution is withheld at source by the employer.
    The employee contributes only for the portion covering the old age pension, permanent and total disability pension, and survival pension. The rate is 4.2% based on the taxable salary, which shall be capped at XAF 750,000 per month (i.e. XAF 9 million per year). The rate for voluntary insurance for this contribution is 8.4%.
  • For their joint personal welfare, employees are obligated to contribute to the National Social Insurance Fund (NSIF) at a particular rate calculated on the basis of their salaries. This contribution is withheld at source by the employer.  The employee contributes only for the portion covering the old age pension, permanent and total disability pension, and survival pension. The rate is 4.2% based on the taxable salary, which shall be capped at XAF 750,000 per month (i.e. XAF 9 million per year). The rate for voluntary insurance for this contribution is 8.4%. 

IS THERE GRATUITY PAYMENTS FOR TERMINATION:

  • Termination of employees in Cameroon depends on the type of employment contract.
  • For an indefinite term period, contracts can get terminated by either party, employer, or employee.
  • The notice period is mandatory and depends on the policy of the Minster, Ministry of Labour.
  • Employees who have worked for 24 consecutive months with the employer are entitled to severance pay. The amount of the same is determined by the Ministry of Labour.
  • The contract can get terminated for fixed-term employment contracts on specific grounds like force majeure and gross misconduct.
  • The termination can be forwarded by either party and needs to be in writing.

WHAT DOUBLE TAX TREATIES ARE IN PLACE:

Get in touch with one of our consultants should you have any further questions regarding our Employer of Record solutions or only require a payroll solution in Cameroon.

Contact Us: