Definitive Guide to Hiring in Cameroon

Hiring in Cameroon

Hiring employees compliantly in Cameroon means doing it yourself or using an Employer of Record like Global Expansion. You should be careful using independent contractor agreements in Cameroon so that you don’t run afoul of employment laws. To hire an employee compliantly and offer them mandatory benefits and compliant agreements, you can:

(a) Establish your own new legal entity, banking, accounting and payroll service in Cameroon or

(b) use an Employer of Record like Global Expansion who can handle all of the details for you.

Labor Laws in Cameroon

Employment laws in Cameroon are uniquely suited to the country’s way of life, and crucial to understand if you want to employ local talent in this country. Get the details on Cameroon employment laws and Cameroon policies here.

Employee Probation Period

• Probationary periods of up to 6 months are allowed, and the agreement must be in writing.
• Managerial staff are generally entitled to an 8-month probationary period.

Annual Leave in Cameroon

• Employees are entitled to 1.5 days of annual leave for each month of service i.e. 18 days of annual leave after one year of service.
•  

Holidays in Cameroon

Maternity Leave Cameroon

• Female employees are generally entitled to 14 weeks of paid maternity leave, with 4 weeks to be taken before the birth or 6 weeks if her doctor orders confinement.  
• Maternity leave is paid for by the National Social Insurance Fund.

Paternity Leave Cameroon

Sick Leave in Cameroon

• Employees are generally entitled to at least 5 days of paid sick leave per year.
• If an employee is injured or becomes ill at work, the employer is responsible for paying for medical treatment.

Working Hours in Cameroon

Overtime in Cameroon

• Overtime may occur on a temporary basis for work necessary due to exceptional or seasonal overload of work; the impossibility of finishing work within a fixed delay, and when recruitment of extra staff is not possible.
• Overtime hours cannot exceed 20 hours per week
• Overtime is paid at the following rates: -

• Overtime during the night is at 50% of the hourly salary
• Overtime rate for the day is as follows: -
  • 8 first hours: 20% of the hourly salary;
  • following 8 hours: 30% of the hourly salary;
  • for the third installment of hours, up to 20 hours per week: 40% of the hourly salary;
  • for overtime work performed on Sundays: 40% of the hourly salary.

Termination of Employment in Cameroon

• Fixed-term contracts may only be terminated for reasons of gross misconduct, force majeure, or written consent of both parties.
• Indefinite-term contracts can be terminated at any time by either the employer or the employee. 
• Notice of termination must be given, the duration of which is set by the Minister in charge of Labor and is based on the seniority and the occupational group of the employee. 
• During the notice period, the employee is generally entitled to one day off per week to look for another job.
• Employees who have worked for at least 2 years are generally entitled to severance pay; the amount of pay is determined by the Minister in charge of Labor.

Notice Period in Cameroon

• Notice of termination must be given, the duration of which is set by the Minister in charge of Labor and is based on the seniority and the occupational group of the employee. 
• During the notice period, the employee is generally entitled to one day off per week to look for another job.

Severance in Cameroon

• Employees who have worked for at least 2 years are generally entitled to severance pay
• The amount of pay is determined by the Minister in charge of Labor.
• 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 year of service

Cameroon Salary and Wages

13th/14th Month Salary in Cameroon

• No
• There is no statutory requirement to pay the 13th or 14th month salary.
• Employees are entitled to a standard rate of holiday after one year of service.

• 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%.

Immigration Cameroon

• All foreign nationals wishing to enter Cameroon must have passports or other valid travel documents to obtain entry visas. 
• When applying for a temporary entry visa, an individual must present a valid passport, a certificate of accommodation and payment of XAF60,000. 
• Cameroon does not have a specific quota system for the issuance of visas
• Tourist visas are granted to foreign nationals who intend to travel in Cameroon. 
• They are issued by diplomatic embassies or Cameroon consulates abroad. 
• Tourist visas are valid for 30 days, are not renewable and permit an unlimited number of entries into the country.
• Business visas are granted to foreign nationals coming to Cameroon to take up technical, industrial or commercial positions. 
• They are valid for one year, are non-renewable and permit multiple entries into the country.
• Work permits are valid for two years and are renewable for an unlimited number of times; the renewed permit is valid for two years. 
• Expatriates may obtain work permits in Cameroon.
• Following the submission of the necessary documentation, work permits are processed in approximately four to six weeks. 
• A foreign national may be self-employed if he or she obtains a residence permit. 
• No minimum amount of capital is necessary to be self-employed.

Value Added Tax (VAT) in Cameroon

• VAT shall be levied on natural persons or corporate bodies that automatically, habitually, or occasionally carry out taxable transactions consisting of provisions of services or sales of goods.
• The total VAT in Cameroon is 19.25%. 
• Exports are zero rated. 
• The VAT paid upstream is recoverable, except where otherwise stated.

Payments And Invoicing

• The PIT year-end date is 31 December.
• The PIT return shall be declared/filed by the 15th day of the month following the payment of wages/salaries. 
• A regularization shall be declared by 15 March following the fiscal year-end, when filing the Annual Tax Return.
• The tax administration may send a pre-completed return of collected revenue or any other taxable item, with the tax amount owed, to any natural or legal person paying taxes or duties as per laws and regulations in force. 
• The taxes payable by the employee shall be withheld at source by the employer, who is responsible for payment to the tax authorities.
• PIT shall be paid by the 15th day of the month following the payment of wages/salaries. 
• A regularization of payroll taxes (including PIT) shall be declared and paid by 15 March following the fiscal year-end, when filing the Annual Tax Return.

Payroll Accrual in Cameroon

Country Accruals Additional Information

Description

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%.

Payroll Accruals Additional Information

Accrued Benefits in Cameroon

Why use Global Expansion to hire in Cameroon

Establishing a branch office or subsidiary in Cameroon can be time-consuming, expensive and complex. With such a robust labor market in place, one must pay great attention to detail when structuring employment because Cameroon labor laws are complex.

The company also has a responsibility to comply with specific employment practices dictated by Cameroon law to maintain its good standing as an equal opportunity employer.

Global Expansion makes it easy for you to expand into Cameroon. We'll help you hire your candidate of choice, handle HR matters and payroll, and ensure that you comply with local laws without the burden of setting up a foreign branch office or subsidiary. In addition, you'll have complete control and direction over your employees.

We enable you to stay in control of everything. Our Cameroon Global Professional Employer Organization (PEO) and Employer of Record (EOR) solution provides you with peace of mind to focus on running your company and the security to enter new markets.