Cameroon

Cameroon PEO & Employer of Record

WeHG provides an International PEO and vglobal Employer of Record service in Cameroon to companies wishing to join the Cameroon market or hire local/expat employees in this country.

Traditional approach requires establishing a subsidiary in Cameroon.  However our Employer of Record solution gives you a chance to start the operations in Cameroon within days hence save time and money.  WeHG would hire candidates on your behalf while you maintain full operational control of their work. So legally they would be our employees, on our local payroll, 100% compliant but will work on your behalf. 

Cameroon fast facts

Population, million: 26,545,863
Land area, sq. km: 475,442 km²
Capital: Yaounde
Local currency: Central African CFA Franc (XAF)

GDP per capita:$1400.00
GDP in currency:$ 34 billion
Economic growth percentage: 4%
Inflation rate (consumer prices): 2.8%
Volume of export: $ 0.489 billion
Import of goods and services: $ 8422 million
Total population: 26,545,863
Population of working age (15-64): 76.73%

Cameroon, the country in Central Africa is bordered by the Gulf of Guinea (Atlantic Ocean) in south west. Cameroon borders Nigeria in north west, the Republic of the Congo (Brazzaville), Gabon and Equatorial Guinea in south, the Central African Republic and Chad in east, and it has a narrow lakefront at Lake Chad in north.

With an area of 475,650 km², the country is almost as large as Spain or slightly larger than the US state of California. Its southern and coastal areas are characterized by dense vegetation, a vast river system and a hot, humid climate with abundant rainfall.

Hiring, Negotiating and Doing Business in Cameroon

Necessity of written employment contract

There is no requirement that the contract of unspecified duration be written, however contracts for specified duration and those which require probationary hiring are required to be written. Although it is not clear what particular might be discussed in relation to contracts for specified duration, the law expressly states that for contracts based on probationary hiring, the employer and the worker must agree to appraise in particular, the worker’s quality of services and his output, as concerns the employer and as concerns the worker, the working, living, wage, safety and hygiene conditions as well as the climate under the employer. There are no provisions found within the law which stipulate within how many days of the commencement of the employment, an employee will be provided with such a letter. 

A contract of employment concerning a foreign worker must be endorsed by the Minister in charge of Labour prior to its commencement. The application of endorsement is made by the employer. Where such endorsement is refused, the contract is null and void. If no decision is announced by the Ministry within two months of the receipt of application, this is deemed to have been endorsed. 

Cameroon Employment Contract

Types of employment agreements

A contract of employment may be concluded for a specified or unspecified duration. These are referred to as fixed term and indefinite term contracts. A contract of specified duration is a contract whose termination is fixed in advance by both parties while a contract of an unspecified period is a contract whose termination is not fixed in advance and may be terminated at any time by the will of the parties, provided that the prior notice is served. 

The legal provisions on fixed term contracts are found in the Labour Code, which stipulates that a contract of employment can be concluded for a specified duration. A contract of specified duration is a contract whose termination is fixed in advance by both parties. 

It may not be concluded for duration of more than (2) two years and is renewable once. At the expiry of such a renewal, the contract is transformed into indefinite contract. Thus, the maximum length of single fixed term contracts including renewals is 48 months. There are however contracts of employment of a specified but non-renewable period, and those are as follows: a) A contract whose termination is subject to the occurrence, which does not depend exclusively on the will of the parties, of a future but certain event that is precisely indicated; and b) a contract concluded for the execution of a specified task.

Cameroon working hours

In general the work week is 40 hours.

Overtime

Working overtime is to be avoided. Whenever it is unavoidable, extra compensation is at stake – minimally the basic hourly wage plus all additional benefits you are entitled to. In accordance with ILO Convention 1, overtime pay rate should not be less than one and a quarter times (125%) the regular rate.

Vacation leave in Cameroon

The worker acquires the right to annual leave at the rate of one and a half days per month of effective service (18 working days of annual leave), paid by the employer. For workers under 18 years of age, 2.5 days per month of service (30 working days of annual leave) are allowed. For mothers, the annual leave is increased by either 2 working days for each child under six years of age or by one day if the mothers accrued leave does not exceed six days. Moreover, the annual leave is increased, taking into account seniority in the company, at the rate of 2 working days per each full period, whether continuous or not, of 5 years of service. The above legal provisions are the minimum and the parties to the contract can agree on more favourable duration of paid leave in collective or individual agreements. 

Sick Leave

A worker’s rights to work and income should be protected when illness strikes. The national labour law may provide that sickness benefit may not be paid during the first 3 days of your absence. Minimally, a worker should be entitled to an income during first 6 months of illness. This income should be at least 45 per cent of the minimum wage. (Countries are free to opt for a system which guarantees 60 per cent of the last wages during the first 6 months of illness or even during the first year). A worker must be entitled to paid sick leave.

Cameroon Maternity Leave

Every pregnant woman is entitled to maternity leave for a period of 14 weeks (4 weeks prenatal and 10 weeks post-natal leave). The maternity leave can be extended by 6 weeks (to a total of 20 weeks) in case of illness duly attested and resulting either from the birth or the pregnancy. 

During the period of maternity leave, the employer cannot terminate the employment contract of the woman. Where the confinement occurs before the due date, the rest period will be extended so that the worker receives the full 14 weeks of leave to which she is entitled.

Cameroon Severance Laws

A contract of employment of unspecified duration may be terminated at any time at the will of either party. A notice of contract termination must be given the party initiating the termination of contract. A written notice must be provided detailing the reasons for the termination. The notice period commences from the date of such notification and it cannot be set off against the leave period of the worker. 

The notice period varies according to the professional category to which the worker belongs and the length of service. For Categories I to VI and domestic workers, the following notice period is followed: a. if the period of service is less than one year, the notice period is 15 days; b. if the period of service is between 1 to 5 years, the notice period is one month; and c. if the period of service is more than 5 years, the notice period is two months. 

For Categories VII to IX, the notice requirement is as follows: a. if the length of service is less than a year, the required notice period is one month; b. if the length of service is between 1 to 5 years, the notice period is 2 months; and c. if the length of service is more than 5 years, the required notice is 3 months. 

For Categories X to XII, the required notice period is 1 month, 3 months and 4 months respectively for above referred lengths of employment. Whenever a contract of employment of unspecified duration is terminated without notice or without the full period of notice being observed, the employer must pay to the employee compensation corresponding to the remuneration including any bonuses and allowances which the employee would have received for the period of notice. 

An employment contract can be terminated without notice in cases of serious misconduct, subject to the findings of the competent court of law as regards the gravity of the misconduct. As far as contract of employment of specified duration is concerned, it may not be terminated prior to its expiry save in the case of gross misconduct, force majeure, or by the written consent of both parties. Probationary hiring contracts will be terminable without notice and without either party having a claim to compensation. 

Severance Pay 

Severance pay corresponds to a percentage of the monthly overall wages per year of service and is set according to the length of service as follows: 

  • 20% of monthly wage per year during the first 5 years of service; 
  • 25% of monthly wage per year from the 6th to the 10th year of service; 
  • 30% of monthly wage per year from the 11th to the 15th year of service;
  • 35% of monthly wage per year from the 16th to the 20th year of service; 
  • 40 % of monthly wage per year after the 21st years of service.

Cameroon Tax

Income Tax – Individuals 

Taxable income (XAF) Rate 

  • 0 – 2 million 10% 
  • 2 000 001 – 3 million 5% 
  • 3 000 001 – 5 million 25% 
  • Over 5 million 35%

Social security

Employees, including civil servants and other government contract workers, trainees and apprentices, must make social security contributions at a rate of 4.2% of gross salary. The maximum monthly earnings for social security contribution and benefit purposes are capped at XAF750 000, leading to an annual ceiling of XAF9 million.

Health Insurance Benefits in Cameroon

In 2012, Cameroon had community-based health insurance, primarily for the poor. The country is working toward providing universal health care. 

Cameroon Holidays

  • New Year’s Day
  • Youth Day
  • Good Friday
  • Labor Day
  • Ascension Day
  • National Day
  • Assumption of Mary
  • Eid al-Adha
  • Prophet’s Birthday
  • Christmas Day

Why Choose WeHireGlobally

WeHG takes care of all the onboarding hurdles, payroll, compensation and benefits, tax filing, and termination of employment. Our Employer of Record solution allows you to manage your foreign teams efficiently while minimizing cost and risk.

 

FAQ Cameroon

  • Working hours in Cameroon

    In general the work week is 40 hours.

  • What are the main holidays in Cameroon?

    • New Year’s Day
    • Youth Day
    • Good Friday
    • Labor Day
    • Ascension Day
    • National Day
    • Assumption of Mary
    • Eid al-Adha
    • Prophet’s Birthday
    • Christmas Day
  • What are payroll taxes in Cameroon?

    Income Tax – Individuals 

    Taxable income (XAF) Rate 

    • 0 – 2 million 10% 
    • 2 000 001 – 3 million 5% 
    • 3 000 001 – 5 million 25% 
    • Over 5 million 35%

    Social security

    Employees, including civil servants and other government contract workers, trainees and apprentices, must make social security contributions at a rate of 4.2% of gross salary. The maximum monthly earnings for social security contribution and benefit purposes are capped at XAF750 000, leading to an annual ceiling of XAF9 million.

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