Cameroon: A Guideline to Payroll and Employer of Record

Establish your presence globally with Neeyamo as we help you go beyond borders to manage your international payroll and hire new talent in Cameroon.

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Overview

Cameroon takes pride in its rich linguistic diversity, with the harmonious symphony of over 230 languages reverberating throughout the nation. This rich diversity not only echoes through the land but also enriches its vibrant culture and its people. Beyond its linguistic treasures, Cameroon flaunts a rich reservoir of diverse talent and a skilled workforce ready to leave a mark on the world stage. 

Do your organization’s expansion plans require you to hire employees in a country with a diverse talent pool? Do you lack a physical entity in the country – a key requisite to hiring local talent? Neeyamo assists organizations worldwide with onboarding and managing employees in Cameroon -processing payroll, managing local compliance requirements, benefits, and more.

Tools And Instances

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Global Payroll

Neeyamo’s global payroll solution covering 180+ countries

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Global Work

A tech-based EOR solution to manage your extended workforce

Facts And Stats

Capital

Yaounde

Currency

Central African CFA franc (CFAF)

Official Language

English, French

Fiscal Year

1 January - 31 December

Date Format

DD/MM/YYYY

Country Calling Code

+237

Time Zone

UTC+01:00

Global Payroll

Overview

What is the meaning of payroll?

Payroll is the list of compensation to be paid to employees of a company or organization for a set period or date. Global payroll provider companies allow organizations to outsource their payroll, allowing employers to focus on other aspects of their business. 

Handling payroll for a widespread workforce can pose a significant challenge for any organization, and the added complication of compliance can make things worse. If companies spend more time processing payroll, it directly impacts day-to-day operations and their overall productivity.

Over the years, Neeyamo has observed these complexities and strived to provide a global payroll solution through a single technology platform - Neeyamo Payroll.

What is Payroll Processing?

Payroll processing involves the administration of employee compensation, encompassing salaries, deductions, bonuses, and related components. For global operations, the management of payroll processing often relies on the expertise of an external payroll service provider.

Payroll Taxes

Payroll tax is the percentage amount retained from an employee's salary and paid to the government to invest in the general population's welfare. Payroll taxes in Cameroon are statutory in nature and are levied from both the employer and employee. Additional statutory contributions are made by employers towards aiding both short-term and long-term benefits for their employees.

Employee Taxes

  • National Social Insurance Fund (NSIF) - 4.2%
  • Housing Fund - 1%
  • Employee Income tax
0 to CFAF 2000000 10%
CFAF 2000001 - CFAF 3000000 15%
CFAF 3000001 - CFAF 5000000 25%
CFAF 5000001 and above 35%

Employer Taxes

  • National Social Insurance Fund (NSIF) - 4.2%
  • Housing Fund - 1.5%

Payroll Cycle

Overview

Undoubtedly, payroll is a critical process for any organization. The pay cycle in Cameroon refers to the period for which an organization pays its employees, and this can vary depending on the pay frequency that the organization chooses to adopt.

Frequency

Typically, employees are paid monthly.

13th Month Cycle

There is no statutory requirement to pay the 13th or 14th month's salary.

Global Work

Overview

An Employer of Record (EOR) service provider helps you eliminate the hassle of handling complexities while onboarding a new employee in an international location. They help bridge the gap that otherwise mandates organizations to have a locally registered entity and a local bank account before making a job offer to an international hire.

An EOR service provider acts as a legal employer, facilitates salary payments, and manages other statutory requirements such as health insurance, payroll taxes, and employee benefits, ensuring compliance with local tax laws and regulations.

This allows organizations to focus on collaborating with the employee in Cameroon for operational tasks, with the knowledge that they have a cost-effective solution to support their global payroll & HR requirements as they continue their global expansion.

HR Mandates and Practices

Minimum Wage

For employees in the agricultural and related sectors, the minimum wage is 45,000 FCFA per month. The third category includes all workers in other sectors of activity, different from those mentioned above, and will be subject to a minimum monthly pay of 60,000 FCFA.

Overtime

Overtime may occur temporarily for work necessary due to exceptional or seasonal overload, along with various reasons.

Overtime hours cannot exceed 20 hours per week.

National labor law requires that employees who work beyond regular hours during the day, on holidays, or at night are entitled to overtime pay but does not specify specific amounts. Specific rates or amounts generally are dictated by collective bargaining agreements or trade union agreements.

Under the National Trade Collective Agreement, for example, employees who work beyond regular hours during the day or on holidays are entitled to a 50% increase in wages for hours worked, while employees who work beyond regular hours at night are entitled to a 100% increase in wages for hours worked.

Data Retention Policy

Tax records must generally be kept for at least four years. Employers generally must maintain all tax and pay-related documents for a minimum of four years.

Hiring and Onboarding Requirements

Hiring

Hiring Employee: Hire workers in Cameroon differs based on the type of employment. If you want to hire employees using a fixed-term contract, it must be in writing and meet a maximum of two years. For Cameroonian employees, you can renew a fixed-term contract once, which becomes an indefinite-term contract. For foreign workers, different rules apply.

It's not legally required to put indefinite-term contracts in writing to avoid any labor disputes or conflicts. These contracts should be in the local language and include important employment terms such as benefits, compensation, working hours, termination requirements, and more. Offer letters and employment contracts with payment or other salary amounts should include those numbers in Central Africa CFA francs.

Onboarding

The following documents are needed for the employee onboarding process:

  • Applicant full name
  • Address
  • Date of Birth
  • Copy of National ID
  • Copy of Passport (for ex-pats)
  • Work Visa (for ex-pats)
  • Work Permit (for ex-pats)
  • CV

Probation

Probationary periods of up to 6 months are allowed, and the agreement must be in writing. Managerial staff is generally entitled to an 8-month probationary period. If the employee continues to work after the probationary period, but no contract is drawn up, that employee is considered to have a permanent position.

Leave

Public Holiday

Full-time salaried employees receive full pay on 11 public holidays. 

  • January 1: New Year's Day 
  • February 11: Youth Day 
  • April 15: Good Friday 
  • May 1: Labour Day 
  • May 2: Labour Day Holiday 
  • May 2: Djoulde Soumae 
  • May 20: National Day 
  • May 26: Ascension Day 
  • July 9: Tabaski 
  • August 15: Assumption Day 
  • December 25: Christmas Day 
  • December 26: Christmas Holiday

Sick Leave

Employees are generally entitled to at least five 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. The employee should provide a sick note only in case they are out of work for over seven days.

Maternity Leave

Pregnant women are entitled to 14 weeks of maternity beginning four weeks before the delivery date. This leave can be extended by six weeks if the woman suffers from a certified illness. Pregnant women on maternity leave are entitled to a daily allowance from the National Social Insurance Fund equal to the standard wages. Women who are medically certified to be pregnant are permitted to terminate their contract without notice or obligation to pay any compensation.

Paternity Leave

The law does not include explicit provisions about paternity leave. However, employees can take a maximum of ten days per year of paid special leave of absence, not deductible from annual leave on family events directly concerning their own home.

Termination

Termination of Employment

An employment contract might be for a specified or unspecified duration, referred to as fixed-term and indefinite-term contracts. Termination is not set in advance in Indefinite-term contracts and may be terminated at any time by both parties provided that the prior notice is served.

Notice Period

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

The National Labor Code states that notice must be given for termination. The conditions and duration are not specified but generally are detailed in trade union and collective bargaining agreements. An employment contract can be terminated without notice in cases of serious misconduct, subject to the competent court of law's findings regarding the gravity of the misconduct. Probationary hiring contracts can be terminated without notice and without either party having a compensation claim.

Severance Pay

Severance pay is regulated under the Labour Code. All employees who worked for at least two years at the same company under a permanent contract are entitled to severance pay except in cases of gross negligence

The required severance pay amounts are based on a percentage of a year's worth of 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

Visa

Overview

Nine days before planning to arrive in Cameroon, one must apply for an entry visa. Most work permits take three days to two weeks to issue, but it takes two to five months to complete the entire process, including:

  • Applying for the work permit
  • Completing a visa application upon arrival
  • Entering Cameroon
  • Applying for a residence permit
  • Applying for an exit visa

Employee Background Checks

Legal and Background Checks

Employment background checks are allowed in Cameroon, and there are no restrictions on background checks.

Types of Employment Background verification include:

  1. Academic
  2. Employment
  3. Criminal check
  4. Reference check
  5. ID check
  6. Passport verification
  7. Social media

Last updated on September 28, 2023.

If you have any queries or suggestions, reach out to us at irene.jones@neeyamo.com

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