Employer of Record in Cameroon

Businesses can only operate smoothly in Cameroon if they comply with local labor laws including drafting compliant employment contract agreements and meeting taxation and payroll obligations. Learn more about the employment laws and regulations in Cameroon below, to avoid any compliance issues.

Employment Contract Requirements

Employment contracts in Cameroon can be drafted in English, French, or as bilingual documents. Compliance with local regulations is crucial, and the following elements must be incorporated into every employment contract:

• Job Description
• Duration of the employment
• Commencement date
• Payment terms

Onboarding Process

We can help you get a new employee started in Cameroon quickly, with a minimum onboarding time of just 1-2 working days. The timeline starts once the employee submits all required information onto the Playroll platform and completes any necessary local authority registrations. For non-nationals, the Right to Work assessment (if applicable) may add up to three extra days. Additional time may be needed for follow-ups on this assessment. Please note, payroll cut-off dates can impact the actual start date. Playroll's payroll cut-off date is the 10th of each month unless otherwise specified.

Working Hours in Cameroon

The regular working hours are 8 hours per day and 40 hours per week in a standard workweek, which is from Monday to Friday.

Overtime in Cameroon

Overtime payment is mandatory, and it applies to hours worked beyond the standard work hours. Employees can work a maximum of 20 hours of overtime per week, with a daily limit of 10 hours. The overtime rates are as follows:

• For the first 8 hours, employees are paid 120% of the hourly wage.
• For the next 8 hours, the rate increases to 130% of the hourly wage.
• Overtime worked on Sundays is compensated at 140% of the hourly wage.
• Overtime during night hours is rewarded at a rate of 150% of the hourly wage.
• In the case of emergencies or force majeure during non-business days, overtime is paid at 150% of the hourly wage.

Probation Period in Cameroon

In Cameroon, probation can last up to 6 months. Managers usually get an 8-month probation. If an employee keeps working after this trial period without a contract, they're considered permanent.

Fiscal Year in Cameroon

1 January - 31 December is the 12-month accounting period that businesses in Cameroon use for financial and tax reporting purposes.

Payroll Cycle in Cameroon

The payroll cycle in Cameroon is usually monthly, with employees being paid by the last day of the month.

Minimum Wage in Cameroon

The minimum wage for employees in Cameroon is typically 261.72 XAF per hour, amounting to ~41,875 XAF per month for a typical 40 hour work week.

Bonus Payments in Cameroon

There is no legal law to provide a 13th or 14th month's salary according to statutory requirements.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 15.45% on top of the employee salary in Cameroon.

Employee Payroll Tax Contributions

In Cameroon , the typical estimation for employee payroll contributions cost is around 5.2%.

Individual Income Tax Contributions

Income tax in Cameroon is calculated on a progressive scale, varying from 11% to 38.5%, based on the individual's income.

Pension in Cameroon

The employee in Cameroon contributes only to the portion covering the old age pension, permanent and total disability pension, and survival pension.

Mandatory Leave Entitlement in Cameroon

The annual leave entitlement in Cameroon is 18 days for a full time worker. These can include public holidays on top of that or within those days, which would otherwise be unpaid.

Public Holidays In Cameroon

Cameroonian employees are entitled 10 national public holidays as paid days off.

Paid Time Off in Cameroon

Employees earn two days of annual leave for every month of service. After one year of employment, employees are entitled to 18 days of paid annual leave. Annual leave is increased by two working days for each full period of five years of employment, whether continuous or not.

Maternity Leave In Cameroon

Female employees are entitled to a 14-week maternity leave, starting four weeks before the expected delivery date. This leave can be extended by an additional six weeks if the woman experiences a certified illness. During maternity leave, pregnant women are eligible for a daily allowance from the National Social Insurance Fund, equivalent to their standard wages.

Paternity Leave In Cameroon

Employees in Cameroon are entitled to three days of paid paternity leave. During this period, the employee will receive 100% of their salary, and the employer is responsible for providing this pay.

Sick Leave In Cameroon

Employees can receive up to six months of paid sick leave upon presenting a medical report. If the illness extends beyond six months, the employer has the legal authority to terminate the employment contract.

Parental Leave In Cameroon

There is no specific law addressing parental leave. However, employees are eligible for maternity leave and paternity leave.

Termination Process in Cameroon

In Cameroon, when terminating an employment contract, the employer must provide a reason that falls into one of the following categories:

• Gross Misconduct
• Mutual Termination
• Layoff
• Constructive Dismissal

Notice Period in Cameroon

During termination in Malawi, a written notice specifying reasons is mandatory. The notice period duration varies based on the employee's professional category and length of service as follows:

• Category I to IX: 30 days if the length of service is less than one year
• Category I to IX: 60 days if the length of service is between 1 to 5 years
• Category I to IX: 90 days if the length of service is more than 5 years
• Category X to XX: 30 days if the length of service is less than one year
• Category X to XX: 90 days if the length of service is between 1 to 5 years
• Category X to XX: 120 days if the length of service is more than 5 years

Severance in Cameroon

Severance pay is governed by the Labour Code. Employees with a minimum of two years of continuous service under a permanent contract are eligible for severance pay, except in cases of gross misconduct. The severance pay amounts are determined as a percentage of one year's salary:

• 20% if terminated within the first five years of service
• 25% if terminated between the 6th and 10th years of service
• 30% if terminated between the 11th and 15th years of service
• 35% if terminated between the 16th and 20th years of service
• 40% if terminated beyond the 21st year of service