Employer of Record in Cameroon

An Employer of Record, or EOR, is a company that legally hires employees on your behalf in Cameroon. This means you can build a team in the country without setting up a local entity. The EOR takes care of all the legal and HR responsibilities that come with employment. Think of them as your local HR department. They handle everything from payroll and taxes to benefits and compliance with Cameroon's labor laws. This lets you focus on managing your team's day to day work and growing your business. For companies looking to hire in Cameroon, an EOR provider like Rivermate can simplify the process.

How an Employer of Record (EOR) Works in Cameroon

Using an EOR in Cameroon is a straightforward process. It allows you to hire talent quickly and compliantly.

Here is how it typically works:

• You Find the Talent: You recruit and select the best candidate for your team in Cameroon.
• The EOR Hires Your Candidate: The EOR legally hires the employee on your behalf. They draft a locally compliant employment contract and handle all the necessary paperwork.
• Onboarding: The EOR onboards your new hire, making sure they are set up for payroll and have all the information they need to start.
• HR and Payroll Management: The EOR manages all HR administrative tasks. This includes running monthly payroll, calculating and withholding taxes, and making social security contributions as required by Cameroonian law.
• Ongoing Compliance: The EOR stays up to date with any changes in local labor laws to ensure you remain compliant. This minimizes your legal risks.
• You Manage Your Team: While the EOR handles the HR administration, you manage your employee's daily tasks and responsibilities, just like any other member of your team.

Why use an Employer of Record in Cameroon

Using an EOR in Cameroon offers a smart solution for companies that want to grow their teams in the country. It simplifies international hiring and provides peace of mind.

Here are some of the key benefits:

• Avoids Setting Up a Local Entity: You can hire employees in Cameroon without the time and expense of establishing a legal entity in the country.
• Ensures Legal Compliance: EORs have expertise in Cameroonian labor laws. They make sure your hiring practices, contracts, and payroll are fully compliant, reducing the risk of fines and penalties.
• Saves Time and Money: By handling administrative tasks, an EOR frees up your time to focus on your core business. You also save on the costs associated with setting up and maintaining a local office.
• Simplifies HR and Payroll: Managing payroll and taxes in a new country can be complex. An EOR handles all these tasks, ensuring your employees are paid correctly and on time.
• Access to a Wider Talent Pool: An EOR allows you to hire the best talent in Cameroon without geographical limitations.

Rivermate's transparent pricing model eliminates complexity with a single, competitive monthly fee per employee. Unlike traditional PEO providers, our pricing in Cameroon includes comprehensive HR support, benefits administration, compliance management, and access to our proprietary dashboard for real-time workforce analytics. No hidden costs, no setup fees—just straightforward pricing that scales with your business needs while ensuring full legal compliance in Cameroon.

Hiring in Cameroon presents a unique opportunity to tap into a young and bilingual workforce. The country's labor laws are governed by the Labour Code, which outlines the requirements for employment contracts, working conditions, and more. Navigating this landscape requires a clear understanding of your obligations as an employer. Whether you're hiring full-time employees or engaging independent contractors, compliance is key.

Employment contracts & must-have clauses

When hiring in Cameroon, you can use either fixed-term or indefinite-term contracts. While oral contracts are permissible in some cases, it's always best to have a written agreement in place. Fixed-term contracts are limited to a maximum of two years and can only be renewed once for national employees before they are considered indefinite.

Your employment contracts should be in French or English and include the following essential clauses:

• Identification of both parties
• Job description and responsibilities
• Work location
• Start date
• Working hours
• Salary and any additional benefits
• Leave entitlements
• Termination conditions

Probation periods

In Cameroon, you can include a probation period in your employment contracts to assess a new hire's suitability for the role. The maximum duration for a probation period is typically six months. For managerial positions, this can be extended to eight months. It is important to note that any probation period must be agreed upon in writing.

Working hours & overtime

The standard work week in Cameroon is 40 hours, typically spread over five days from Monday to Friday. For the agricultural sector, the standard work week is 48 hours.

Any hours worked beyond the standard are considered overtime and must be compensated at a higher rate. You can ask employees to work a maximum of 20 overtime hours per week. The overtime pay rates are structured as follows:

Public & regional holidays

Your employees in Cameroon are entitled to paid time off for public holidays. The government releases an official list of public holidays each year. Some holidays are based on the lunar calendar, so their dates can vary.

Here are the expected public holidays in Cameroon for 2025:

Hiring contractors in Cameroon

Engaging independent contractors can be a flexible way to access specialized skills. However, it's crucial to understand the legal distinctions between an independent contractor and an employee to avoid misclassification.

An independent contractor is self-employed, provides their own tools, and is responsible for their own taxes and social security contributions. They are not covered by the same labor laws as employees and are not entitled to benefits like paid leave or sick pay.

Misclassifying an employee as a contractor can lead to significant penalties, including:

• Back payment of social security contributions and payroll taxes.
• Fines and legal fees.
• Payment of employee benefits that were not provided.

An Employer of Record (EOR) can help you mitigate these risks. An EOR acts as the legal employer for your workers in Cameroon, ensuring compliance with all local labor laws. This includes managing payroll, taxes, and benefits, allowing you to focus on the day-to-day management of your team without the administrative burden and legal risks of hiring directly.

Understanding compensation and payroll in Cameroon is straightforward. Local laws guide how you pay your team, and staying compliant is key to building a strong relationship with your employees. This means accurate, on-time payments that meet all legal requirements. Getting payroll right from the start helps you avoid problems and focus on growing your business.

Payroll cycles & wage structure

In Cameroon, the payroll cycle is typically monthly. You should pay your employees by the last day of the month. Your wage structure will include the base salary plus any allowances or bonuses. Common additions include transportation and housing allowances. While a 13th-month bonus is not required by law, many companies offer it as a common practice.

Overtime & minimums

The standard work week in Cameroon is 40 hours. You can ask employees to work up to 20 hours of overtime per week. You must pay a premium for these extra hours. The rates are:

• 120% of the normal hourly rate for the first 8 hours.
• 130% of the normal hourly rate for the next 8 hours.
• 140% for any additional hours.
• 150% for overtime at night or on Sundays.

As of early 2025, the national minimum wage is XAF 43,969 per month. For agricultural workers, the minimum wage is XAF 45,000 per month.

Employer taxes and contributions

As an employer, you contribute to several funds on behalf of your employees. These contributions are a percentage of the employee's gross salary.

Employee taxes and deductions

Employees also contribute to social funds, and you must withhold income tax from their salaries.

Personal income tax is progressive, meaning the rate increases with income.

In Cameroon, the labor laws provide a solid foundation of benefits for employees. This includes paid time off for vacation, illness, and family matters. The system ensures people have support during important life events. Understanding these benefits is key when you hire in Cameroon.

Statutory Leave

The law in Cameroon requires employers to provide several types of paid leave.

• Annual Leave: You give employees 1.5 days of paid leave for every month they work. This adds up to 18 days per year. For employees under 18, the rate is 2.5 days per month.
• Sick Leave: Employees can take up to five paid sick days each year. For more serious health issues, they can receive up to six months of additional leave with a doctor's certificate.
• Maternity Leave: Pregnant employees get 14 weeks of paid maternity leave. This usually starts four weeks before the due date. The National Social Insurance Fund covers the pay during this time.
• Paternity Leave: Fathers can take up to 10 days of paid leave for the birth of a child.
• Family Event Leave: Employees can take up to 10 days of paid leave for important family events. This can include a wedding or a funeral.

Public Holidays

Cameroon celebrates several national public holidays each year. All employees are entitled to a paid day off for these holidays.

* These dates are based on the lunar calendar and may change.

Typical Supplemental Benefits

Beyond the required benefits, many companies offer extra perks to attract and keep talent. Here is a look at both statutory and common non-statutory benefits.

How an EOR Can Help with Setting Up Benefits

Setting up a benefits plan in a new country can be complex. An Employer of Record (EOR) simplifies this process for you.

An EOR already has a legal entity in Cameroon. This means you don't have to set one up yourself. They handle all the administrative tasks related to benefits. This includes enrolling your employees in the required social security programs.

An EOR also helps you offer competitive supplemental benefits. They understand the local market and can advise you on what other companies offer. This helps you attract the best talent. By managing these tasks, an EOR saves you time and ensures you comply with all local laws.

When an employment relationship in Cameroon ends, you need to follow a specific process. This involves legal requirements for both you and your employee. Navigating termination and offboarding correctly protects your business and ensures you treat your former employee fairly. The process is governed by the Cameroonian Labour Code, which sets out the rules for things like notice periods and final pay.

Notice periods

When you terminate an indefinite-term contract, you must provide written notice. The length of the notice period depends on the employee's professional category and how long they have worked for you. This period gives the employee time to find a new job. During the notice period, employees are entitled to two paid days off per week to look for other work.

You can also choose to pay the employee in lieu of notice. This means you pay them their salary for the notice period, and their employment ends immediately.

Severance pay

Employees in Cameroon who have worked for you for at least two consecutive years are typically entitled to severance pay when their contract is terminated. This does not apply in cases of gross misconduct.

The amount of severance pay is a percentage of the employee's average monthly salary over the last 12 months. The percentage increases with the employee's length of service.

Here is a breakdown of the severance pay calculation:

How Rivermate handles compliant exits

Navigating the details of termination in Cameroon can be complex. We make sure every step of the offboarding process is compliant with local labor laws.

Here is how we help:

• Documentation: We handle all the necessary paperwork, including the termination letter and final settlement documents.
• Calculations: We accurately calculate final pay, including any outstanding salary, accrued leave, and severance pay.
• Compliance: We ensure that you meet all legal requirements for notice periods and severance, reducing the risk of legal disputes.
• Guidance: We provide clear guidance on the process, so you understand your obligations as an employer.

By managing the entire process, we help you offboard employees smoothly and respectfully, while keeping your business protected.

Navigating the visa and work permit process in Cameroon requires understanding a key distinction: you need a work permit to be allowed to work, and a work visa to enter the country for that purpose. The entire process is employer-driven, meaning your employer in Cameroon must initiate and sponsor your application. They handle the work permit application with the Ministry of Labor and Social Security before you can even apply for your entry visa.

Employment visas & sponsorship realities

An employer in Cameroon must sponsor you to get a work permit. This is a legal requirement. The company must be a registered entity in the country to sponsor foreign employees.

The process starts when a company offers you a job. They will then apply for your work permit on your behalf. This can take a significant amount of time, often around four to six months, so it's important to plan ahead.

To sponsor your work permit, your employer will typically need to provide documents like:

• Your employment contract
• A detailed job description
• Certified copies of your academic and professional qualifications
• The company's articles of association and organizational chart
• A recent medical certificate
• Your curriculum vitae (CV)

Once the work permit is approved by the Ministry of Labor, you can then apply for a long-stay visa, which acts as your work visa, at a Cameroonian embassy or consulate. This visa allows you to enter the country to start your job. Work permits are usually valid for one year and can be renewed.

Business travel compliance (short-term visits)

If you are traveling to Cameroon for short-term business activities, you will need a short-stay visa. These visas are typically valid for up to six months and can allow for single or multiple entries.

These visas are for activities like:

• Attending meetings
• Negotiating contracts
• Exploring business opportunities

It is critical to understand that a short-stay visa does not permit you to engage in local employment. Working without the proper authorization can lead to legal problems.

Cameroon does not currently offer a specific visa for digital nomads. If you plan to work remotely from the country, you might use a short-stay visa, but you must be careful not to violate the terms of your entry.