Using an Employer of Record in Cameroon

Hiring and paying employees in Cameroon can be complex because businesses must comply with evolving labor laws, payroll regulations, and statutory benefits requirements. Managing these requirements without local expertise can slow down expansion and lead to compliance risk.

Using an Employer of Record in Cameroon can help simplify the process. By working with an Employer of Record like Payoneer Workforce Management, companies can engage talent compliantly without establishing a legal entity.

Find out more about Payoneer Workforce Management, or keep reading to learn how using an Employer of Record in Cameroon works and what engaging talent in Cameroon involves.

How to hire employees in Cameroon

Companies expanding into Cameroon typically choose from three main talent engagement approaches. Each option involves different levels of cost, control, and compliance responsibility.

1. Set up a local entity: This allows businesses to hire employees directly under local labor law, offering full control over payroll and contracts, but requires business registration, tax compliance, and ongoing administration. This is best suited to companies planning a long-term presence.

2. Hire independent contractors or freelancers: Engaging contractors can be faster, but it may result in misclassification risks if the talent gets incorrectly classified. Authorities may scrutinize contractor arrangements, and misclassification can lead to fines or back payments.

3. EOR in Cameroon: Using an Employer of Record in Cameroon enables companies to engage talent quickly without setting up a local entity. The Employer of Record legally employs workers, while you may be able to manage their day-to-day work, helping reduce administrative burdens as you scale.

Payoneer Workforce Management enables compliant onboarding and engagement of talent in 160+ countries without having to set up a legal entity. We assist you in mitigating compliance risks and risks related to contractor misclassification.

How to onboard employees in Cameroon

Onboarding employees in Cameroon involves preparing compliant contracts, registering employees with relevant authorities, and enrolling them in payroll and benefits systems. Employers must make sure all documentation aligns with local labor regulations before the employee starts work.

A well-organized onboarding workflow supports a smooth start for every new employee. An effective onboarding process in Cameroon typically includes the following key stages:

• Payroll and benefits setup: Register the new employee with the National Social Insurance Fund and include them in the appropriate payroll processes. Ensure that mandatory contributions, tax obligations, and benefit registrations are completed according to national requirements.
• Device provisioning and workspace readiness: Provide the employee with the required devices, software access, and credentials before their first working day. Confirm that their workspace, whether onsite or remote, is prepared.
• Structured first week orientation: Organize a comprehensive orientation during the first week. This often includes company policies, workplace procedures, organizational culture, compliance expectations relevant to Cameroon, and a clear overview of the role and responsibilities.
• Introductions to teams and key stakeholders: Arrange initial meetings with the employee’s team, manager, and relevant cross-functional partners. These interactions help the employee integrate quickly, build early collaboration, and understand how their work contributes to broader organizational objectives.

Payoneer Workforce Management enables companies to compliantly engage talent across borders through its technology platform.

Pay employees in Cameroon

Managing Cameroon payroll requires compliance with statutory pay rules, tax obligations, and social security contributions. Employers must make accurate calculations and timely payments to remain compliant.

Payments are made in XAF (Central African CFA Franc) and are typically made on the 25^th of each month. Minimum wage in Cameroon varies by sector. 

For employees in the agriculture and related sectors, the minimum wage is FCFA 45,000 per month.

Employees in other sectors may be entitled to a minimum wage of 60,000 FCFA per month.

Employers must also understand income tax, social security contributions, and benefits obligations to effectively manage payroll.

Income Tax

Income tax in Cameroon is progressive and applies to employee earnings. Rates range from 11% to 38.5% depending on income level.

Employer contributions

Employers in Cameroon must contribute to the national social security system, which is managed by the National Social Insurance Fund (CNPS). Contributions are: 

• 11.2% for employers
• 4.2% for employees

The contribution base is capped at XAF 750,000 per month or XAF 9,000,000 per year.

Contributions cover family benefits, workplace accidents and occupational diseases, and pensions for old age, invalidity, and survivors.

Employee benefits

Employees in Cameroon are covered by public health insurance through the national social security system, which provides basic healthcare benefits.

Although not mandatory, employers may provide private health insurance to employees. 

Using an Employer of Record offers a streamlined way to pay employees in Cameroon. Payoneer Workforce Management’s unified, all-in-one platform gives you a single dashboard to manage a global workforce. 

Employment laws in Cameroon

Employers engaging talent in Cameroon need to comply with local labor laws. Here are some key employment laws in Cameroon.

Working hours and overtime

The regular workweek is 40 hours. Up to 20 hours of overtime per week is permitted. Overtime is not authorized on public holidays. Overtime rates are applied as follows:

Probation periods

Probation periods of up to 6 months are generally allowed, while managerial staff may have probation periods of up to 8 months. Probation terms must be expressly stated in writing at the time of the trial engagement. 

Maximum probation durations vary by employee category:

Minimum wage in Cameroon

The minimum wage in Cameroon varies by sector. For employees in the agricultural and related sectors, the minimum wage is XAF 45,000 per month. Workers in other sectors are subject to a minimum monthly salary of XAF 60,000.

Businesses should regularly monitor changes to minimum wage levels to stay compliant with labor regulations.

Employment contracts in Cameroon

Employment contracts in Cameroon must be issued in writing and clearly define the employment relationship. Contracts should be provided before the employee begins work and must comply with local labor laws.

Employment contracts typically include:

• Employer and employee information
• Start date and employment term
• Job title and responsibilities
• Salary and benefits
• Working hours and overtime terms
• Leave entitlements
• Probation period details
• Termination conditions

Employers should always verify contract requirements against government regulations and official sources. 

Onboard talent quickly and securely with localized contracts and payroll with Payoneer Workforce Management.

Leave policy in Cameroon

Here’s what employers need to know about statutory leave entitlements in Cameroon.

Public holidays and vacation time

Cameroon observes approximately 10 public holidays each year. 

Employees are entitled to 24 days of paid vacation leave after completing 1 year of service. Whether or not leave can be carried forward is determined by company or client policy.

Maternity leave and paternity leave

Female employees are entitled to paid maternity leave of 14 weeks, while fathers may avail paternity leave for 3 days.

Sick leave

Employees may be entitled to up to 6 months of paid sick leave, depending on circumstances and medical certification.

Other leave

Employees may also be entitled to special leave for family events.

Compassionate leave includes 3 days for the death of a parent, spouse, or child.

Employees are also entitled to the following wedding leave:

Work permit in Cameroon

Work permit requirements in Cameroon vary depending on the employee’s nationality and immigration status. Employers should consult official government resources to confirm requirements before engaging foreign nationals.

Businesses engaging expats in Cameroon, employers should refer to government guidance for specific immigration procedures.

Background check in Cameroon

Employers in Cameroon may conduct background checks before engaging talent, subject to local data protection laws. These checks may include criminal background checks, employment history, education verification, and social media reviews, subject to legal restrictions.

Employee consent is generally required, and employers must disclose the scope of any checks conducted. Always check local regulations before conducting any background checks in Cameroon.

Employment termination in Cameroon

Termination of employment in Cameroon must follow legal procedures and be based on valid grounds. Termination without justification may be considered unfair dismissal and can result in legal consequences. Termination processes can be complex and should be handled on a case-by-case basis.

Valid termination scenarios

Employment in Cameroon can be terminated in the following situations:

• Employee resignation
• Mutual agreement between the employer and employee
•  Termination during probation
• Termination due to misconduct, performance issues, or absence without leave

Notice period

Notice periods depend on professional category and length of service. They generally range from 15 days to 4 months, unless longer periods are specified in contracts or collective agreements.

Severance payable

Severance payments vary by an employee’s length of service: 

Company registration

Registering a company in Cameroon may be appropriate for businesses planning long-term operations, direct hiring, or local market expansion. However, registration involves administrative complexity and ongoing compliance requirements.

Details on company registration can be found on government websites. 

For many companies, using an Employer of Record Cameroon solution is an easier way to engage talent without establishing a local entity.

Payoneer Workforce Management enables compliant onboarding of talent in 160+ countries without having to set up a legal entity.

PEO in Cameroon

A Professional Employer Organization (PEO) in Cameroon can support HR and payroll functions, but requires you to have a legal entity in-country. 

On the other hand, an Employer of Record in Cameroon does not require a legal entity and instead serves as the legal employer for the local team. This often makes it the better choice for companies new to the Cameroon market.

Payoneer Workforce Management’s Employer of Record services in Cameroon

Payoneer Workforce Management helps growing companies onboard, pay, and manage employees in Cameroon without setting up a local entity. 

As your EOR in Cameroon, we offer assistance with employment contracts, benefits administration, taxes, and payroll, while you retain control over daily operations.

Book a demo to learn more about Payoneer Workforce Management.

FAQs

1) What is an Employer of Record in Cameroon?

An Employer of Record in Cameroon is a third-party organization that legally employs workers on your behalf and manages payroll, taxes, and employment contracts, allowing you to engage without establishing a local entity.

2) How much does it cost to hire in Cameroon?

Employer costs are approximately 17.45% on an annual salary of USD 60,000. Costs can vary depending on the employee’s salary and other local factors. Use our employee cost calculator for a more accurate estimate.

3) Why should you hire talent through an EOR in Cameroon?

Working with an EOR in Cameroon can help streamline the process of engaging talent. Payoneer Workforce Management allows you to pay independent contractors and employees across the globe in 70+ currencies. Get in touch to learn more about pricing and services.