G-P provides employer of record services for customers that want to hire employees and run payroll without first establishing a branch office or subsidiary in Cameroon. Your candidate is hired via G-P’ Cameroon PEO in accordance with local labor laws and can be onboarded in days instead of the months it typically takes. The individual is assigned to work on your team, working on your company’s behalf exactly as if he or she were your employee to fulfill your in-country requirements.
Our solution enables customers to run payroll in Cameroon while HR services, tax, and compliance management matters are lifted from their shoulders onto ours. As a Global PEO expert, we manage employment contract best practices, statutory and market norm benefits, and employee expenses, as well as severance and termination if required. We also keep you apprised of changes to local employment laws in Cameroon.
Your new employee is productive sooner, has a better hiring experience and is 100% dedicated to your team. You’ll have peace of mind knowing you have a team of dedicated employment experts assisting with every hire. G-P allows you to harness the talent of the brightest people in more than 185 countries around the world, quickly and painlessly.
Cameroon is located in Central Africa and borders the Atlantic Ocean. The official languages of Cameroon are French and English. Cameroon can be a difficult country in which to set up a business, as its ranking of 167 on the World Bank’s Ease of Doing Business scale demonstrates.
When negotiating terms of an employment contract and offer letter with an employee in Cameroon, it may be useful to keep the following in mind:
Employment Contracts in Cameroon
Generally, fixed-term contracts of up to 2 years are allowed and may be renewed once. If the fixed-term contract is for more than 3 months, it must be in writing.
Although not legally required for indefinite term contracts, it is best practice to put a written employment contract in place in Cameroon, in the local language, which spells out the terms of the employee’s compensation, benefits, and termination requirements. An offer letter and employment contract in Cameroon should always state the salary and any compensation amounts in Central Africa CFA francs rather than a foreign currency.
Working Hours in Cameroon
In general the work week is 40 hours.
Holidays in Cameroon
Cameroon celebrates 12 national holidays, including:
- New Year’s Day
- Youth Day
- Good Friday
- Labor Day
- Ascension Day
- National Day
- Eid al-Fitr
- Assumption of Mary
- Eid al-Adha
- Prophet’s Birthday
- Christmas Day
Vacation Days in Cameroon
In general, employees are eligible to accrue 1 1/2 days of leave for each month of work. After 5 years of service, employees are eligible to receive an additional 2 days per month. Workers who have accumulated more than 12 days of leave may split up their leave, but one portion must equal 12 continuous working days.
Workers are also generally eligible to receive 10 days of paid leave for family events.
Mothers with children under 6, are generally eligible for 2 additional days of leave for each child who lives in the home, or 1 day if the mother’s accrued leave does not exceed 6 days.
Cameroon Sick Leave
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.
Maternity/Paternity Leave in 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.
Fathers can use their 10 days of paid family leave for paternity leave.
Health Insurance in Cameroon
In 2012, Cameroon had community-based health insurance, primarily for the poor. The country is working toward providing universal health care.
Termination/Severance in Cameroon
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. 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.
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 Labour 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 Labour.
Paying Taxes in Cameroon
Companies earning less than XAF 3 billion are subject to a 30.8% corporate income tax rate, while companies earning more than 3 XAF billion are taxed at 33%. Employers are also taxed 11.2% towards Cameroon’s social security fund while employees contribute 4.2%. Employees pay personal income taxes of between 11% and 38.5%.
This information is provided as generally accepted information and is not intended as advisory services.
Establishing a branch office or subsidiary in Cameroon to engage a small team is time-consuming, expensive and complex. Cameroon’s labor law has strong worker protections, requiring great attention to detail and an understanding of local best practices. G-P makes it painless and easy to expand into Cameroon. We can help you hire your candidate of choice, handle HR matters and payroll, and ensure that you’re in compliance with local laws, without the burden of setting up a foreign branch office or subsidiary. Our Cameroon PEO and Employer of Record solution provides you peace of mind so that you can focus on running your company.
If you would like to discuss how G-P can provide a seamless employee leasing or PEO solution for hiring employees in Cameroon, please contact us.