How to hire and pay employees in Cameroon

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Cameroon Facts and Stats

Currency

Central African CFA Franc (XAF).

Employer Costs

Estimated at 15.45% of employee’s salary.

Languages

Extremely diverse range of languages, predominantly French and English are spoken.

Population

Approx 29.5 million.

Payroll frequency

Monthly.

Hiring

Grow your team in Cameroon

No entity, no problem

To start growing your team in Cameroon, you must establish a local entity- including an account with a local bank, a local office and an address registered as a subsidiary. This allows you to manage payroll, tax, benefits and compliance for your employees, but can take several months.

Emerald can hire and payroll your workers quickly and compliantly with their ‘ready to go’ entity. Make growing your team simple with Emerald as a global partner.

Emerald can hire and payroll your workers, quickly and compliantly with their ready to go entity. Make growing your team simple with Emerald as a global partner.

Pros & Cons of hiring in Cameroon

Hiring employees in Cameroon offers a range of advantages, but also comes with certain challenges. On the positive side, one of the key benefits is the relatively low labour costs compared to many Western and developed markets, which can significantly reduce overall operational expenses. Companies can also tap into a diverse and growing pool of skilled professionals, particularly in fields such as telecommunications and IT, thanks to Cameroon’s expanding educational system and technical institutes. The country’s strategic location in Central Africa provides access to both regional and international markets, making it a valuable base for companies looking to expand in Africa.

However, hiring in Cameroon is not without its difficulties. Navigating the country’s bureaucratic processes can be time-consuming, with complex labour laws and administrative procedures often causing delays. There may also be uncertainties around regulatory frameworks, which can complicate compliance and increase operational risks for foreign businesses. Additionally, infrastructure limitations in some areas may hinder business operations, particularly for companies relying on consistent digital connectivity. Despite these challenges, with careful planning and local expertise, businesses can successfully tap into the potential of the Cameroonian workforce.

Why Cameroon is good for remote workers

Remote hiring in Cameroon offers compelling advantages. By embracing remote work, businesses can tap into a broader talent pool across the country, not limited by geographical boundaries. This approach promotes inclusivity and diversity within teams, fostering innovative ideas and solutions. Furthermore, remote work reduces overhead costs associated with physical office spaces, offering financial savings and operational flexibility. Overall, hiring remotely in Cameroon enhances adaptability and efficiency, making it a strategic choice for businesses aiming to scale and thrive in a competitive global environment.

Start growing your remote workforce now

Employer Costs
Family Benefit:7%
Pension insurance:4.2%
Occupational Accident Insurance:1.75%
National House Loan Fund Tax:1.5%
National Employment fund:1%
Benefits

Mandatory Benefits

Social Security Contributions.

Annual Leave.

Sick Leave.

Maternity Leave.

Public Holidays.

Severance Pay.

Employment

Probation

Typically, 3 months.

Emerald Technology can onboard employees in Cameroon within 48 hours.

Restrictive Covenants

In Cameroon, restrictive covenants, such as non-compete clauses, are legally recognized but must be reasonable in scope, duration, and geographic area to be enforceable. They are typically included in employment contracts to protect employers’ legitimate business interests after an employee leaves the company.

Insurance
01.

Health Insurance:

The healthcare system in Cameroon includes both private and public sectors making insurance available to residents for free or at a low cost. The government funds the public healthcare system which provides basic health services such as general outpatient care, maternal and child health services, immunizations and preventive care. The National Health Insurance Fund provides health coverage for salaried employees in public and private sectors.

02.

Social Security Contributions:

In Cameroon, social security contributions are mandatory for all employees in the formal sector, which includes Cameroonian citizens and expatriates. This is managed by the National Social Insurance Fund which covers pension benefits, health insurance and family benefits. The total employee contribution is around 3.75% and the total employer contribution is about 9.75% of the employee’s gross salary.

Leave Policy
01.

Maternity Leave:

14 weeks, 4 before, 10 after delivery.

02.

Paternity Leave:

Fathers can take up to 10 days paid leave.

03.

Sickness Leave:

5 days per year.

Onboarding

Onboarding

As the legal employer, Emerald Technology requires the following employee documents to ensure complete compliance:

Emerald Technology can onboard employees in Cameroon within 48 hours.
Termination

Resignation and Dismissal

When an employer dismisses an employee it must be with just cause and they must give them notice. The notice period starts from the day after the employer notifies the employee of the termination. Notice must be given in accordance with the following schedule at a minimum:

Termination:

In Cameroon, an employer can terminate an employment contract for just cause if the reason is due to misconduct, mutual termination, or accidents/economic condition.

Notice Periods:

Contracts with indefinite terms can be terminated at will with 1 week of notice and one day off per week for the employee to seek new opportunities.

Severance

If an employee is made redundant, they are entitled to a payment based on years of continuous service.

Severance Pay:

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.

Time off

Statutory Time off

Annual leave entitlement in Cameroon for employees is 18 days.

Public Holidays

  • New Years Day
  • New Years Holiday
  • Youth Day
  • Good Friday
  • Djoulde Soumae
  • Labour Day
  • Ascension Day
  • National Day
  • Tabaski
  • Assumption Day
  • Christmas Day
Emerald Technology can onboard employees in Cameroon within 48 hours.
Salary / Taxes

Work, Pay and Taxes

01.

Minimum Wage:

The national minimum wage in Cameroon is 261.72 XAF per hour.

02.

Working Time and Overtime:

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.

03.

Salary Payments:

Salaries in Cameroon are most commonly paid on a monthly basis.

04.

Bonuses in Cameroon:

05.

Income Tax:

  • 0 – 2,000,000: 11%,
  • 2,000,001 – 3,000,000: 16.50%,
  • 3,000,001 – 5,000,000: 27.50%,
  • 5,000,001 and above: 38.50%.
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