One of the most challenging aspects of expanding to a new country is setting up payroll. When expanding to Cameroon, you’ll not only have to set up payroll, but you will also have to hire employees, determine compensation and benefits, and establish a subsidiary.
G-P can take all of these tasks off your to-do list. When you work with an Employer of Record (EOR) like us, you won’t have to incorporate in the country or worry about compliance.
Taxation rules in Cameroon
Cameroon’s tax year follows the regular calendar year and ends on December 31. Employees pay personal income taxes on a sliding scale between 11% and 38.5%. Employers have to deduct taxes from employees’ salaries and give the funds to the proper authorities before the 15th of each month. This pay-as-you-earn (PAYE) system is not required if the employee makes less than 62,000 XAF a month.
Cameroon payroll options for companies
Different payroll structures work for different companies, so you should choose the best Cameroon payroll option for your business goals. There are 3 main options:
- Internal: Large companies with a strong commitment to Cameroon may opt to create an internal payroll using a robust HR team. This option usually works best for large subsidiaries with a bigger budget.
- Cameroon payroll processing company: Working with a Cameroon payroll processing company is a great way to outsource your payroll, though your company will still need to take care of compliance.
- G-P: The easiest way to run payroll in Cameroon and stay compliant is partnering with an Employer of Record (EOR) like G-P. With us, you can rest assured that all employees will be paid on time, freeing you to focus on other important aspects of your business.
How to set up a payroll in Cameroon
If you don’t work with a global EOR, you’ll have to establish a subsidiary before you set up your Cameroon payroll. Keep in mind that the process may take several months before you’re finally ready to hire employees and start working in Cameroon.
G-P eliminates the incorporation requirement. As part of our EOR services, we’ll handle everything from hiring employees to compensation and benefits and payroll.
Entitlement/termination terms
Including entitlement and termination terms in an employment contract is a great way to ensure compliance even before you set up your Cameroon payroll. Termination terms depend on whether the employee has a fixed-term or indefinite-term employment contract. All employees who have worked for at least 2 years generally get severance pay determined by the minister in charge of labor.
Streamline global payroll management with G-P.
G-P streamlines each step of the payroll management process with our market-leading Global Growth Platform™. Pay your team with confidence anywhere in the world in 150 currencies with our 99% on-time automated payroll system — all with just a few clicks. Our products also integrate with leading HCM solutions, syncing employee payroll data across platforms automatically to create one reliable, convenient source of truth for HR teams.
Contact us to learn more about how we can support you.