Employer of Record in Cameroon

Expanding your business into Cameroon requires a clear understanding of the local employment landscape. Companies looking to hire talent in this dynamic market have several strategic avenues for engaging employees, each with distinct implications for compliance, cost, and operational overhead.

Here are the primary options for hiring in Cameroon:

• Establish a local entity: This traditional approach involves setting up a subsidiary or branch office. It requires significant upfront investment in time and resources for registration, obtaining local licenses, and navigating corporate and labor law compliance.
• Utilize an Employer of Record (EOR): An Employer of Record, such as Rivermate, allows you to hire employees in Cameroon without needing to establish your own legal entity. The EOR serves as the legal employer, managing all local compliance, payroll, and HR functions, while your company retains full control over the daily management of your team.
• Hire independent contractors: Engaging individuals as independent contractors can offer flexibility. However, it requires careful consideration of local classification rules to mitigate the risks of misclassification under Cameroonian labor law, which could lead to significant penalties.

How an Employer of Record (EOR) Works in Cameroon

Navigating Cameroon’s specific labor laws, tax regulations, and social security contributions can be complex. An Employer of Record simplifies this by taking on the legal responsibilities of employment, allowing your company to focus on its core business. An EOR typically manages:

• Payroll management: Ensuring accurate and timely payment of salaries, bonuses, and allowances in compliance with local regulations.
• Tax compliance: Handling all income tax, social security contributions, and other statutory deductions as required by Cameroonian law.
• Benefits administration: Administering mandatory benefits, such as health insurance, retirement plans, and leave entitlements, in line with local standards.
• HR support: Providing guidance on employment contracts, onboarding, offboarding, and other HR-related matters specific to Cameroon.
• Legal compliance: Ensuring adherence to all local labor laws, including working hours, termination procedures, and employee rights.

Benefits of Using an EOR in Cameroon

For companies aiming for rapid market entry or those testing the waters in Cameroon, an EOR provides a strategic advantage by:

• Enabling faster market entry: Bypass the lengthy and complex process of entity registration, allowing you to hire and onboard employees in Cameroon quickly.
• Reducing administrative burden: Delegate all payroll, tax, and HR compliance tasks to the EOR, freeing up your internal resources.
• Ensuring compliance assurance: Mitigate the risks of non-compliance with Cameroon's evolving labor laws and tax regulations.
• Offering cost efficiency: Avoid the significant costs associated with establishing and maintaining a local legal entity.
• Providing operational flexibility: Easily scale your workforce up or down without the complexities of entity management.

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.

Cameroon's tax system, governed by the General Tax Code, imposes specific obligations on employers, including social security contributions, payroll taxes, and income tax withholding. Employers must contribute to the National Social Insurance Fund (CNPS) for their employees, covering pension (8.4%), family allowances (7%), and employment injury (2%), totaling 17.4% of gross salary, with employees contributing 2.8%. Employers are also responsible for withholding income tax based on a progressive scale, with rates ranging from 10% to 35% depending on income brackets.

Employees benefit from deductions such as professional expenses, family allowances, social security contributions, and approved insurance premiums, which reduce taxable income. Employers must adhere to timely reporting and payments to avoid penalties, with key deadlines including the 15th of each month for social security and income tax remittances, and the annual tax return due by March 31st.

Foreign entities and workers are subject to the same laws but should consider tax treaties, expatriate allowances, and the potential for a permanent establishment, which could trigger additional corporate tax obligations. Seeking professional advice is recommended to navigate these complexities and optimize tax compliance.

Cameroon's salary landscape varies significantly across industries, roles, and regions, with salary ranges influenced by experience and company size. Key roles such as accountants earn between 2.5M-6M XAF annually, software developers 3M-8M XAF, and project managers up to 12M XAF. Salaries tend to be higher in multinational firms and urban centers like Douala and Yaoundé.

The statutory minimum wage in 2025 is 41,875 XAF per month, with employers legally required to meet or exceed this, though sector-specific agreements may set higher standards. Compensation packages often include bonuses such as end-of-year (equivalent to one month’s salary), performance, transportation, housing, medical, and meal allowances, varying by company policy.

Payroll is typically processed monthly via bank transfers, with increasing use of mobile money, and deductions for taxes and social security are mandatory. Salary trends forecast rising demand for digital skills, performance-based incentives, and benefits focused on employee well-being, driven by inflation and economic growth.

| Minimum Wage (2025) | 41,875 XAF/month |

Cameroon's vacation and leave policies aim to protect employee rights and promote work-life balance. Employees are entitled to a minimum of 18 paid annual leave days, calculated as 1.5 days per month of service, with potential for more based on contracts or collective agreements. Leave should generally be taken within six months of accrual.

Public holidays are non-working days with paid leave, including major observances such as New Year's Day, Labour Day, National Day, and Christmas, with specific dates varying annually. Sick leave requires a medical certificate and offers varying durations and pay depending on agreements and service length. Maternity leave is set at 14 weeks with full pay, while paternity leave is shorter, typically a few days, also paid. Adoption leave provisions exist but vary in duration and conditions.

Additional leave types include bereavement, study, and sabbatical leave, often governed by employer policies rather than law. Employers should ensure compliance with these regulations to foster a fair and compliant work environment.

Cameroon's labor laws mandate several employee benefits, including social security contributions, family allowances, work injury insurance, paid leave, maternity leave, and sick leave. Employers and employees contribute to the National Social Insurance Fund (CNPS), with typical rates around 8.4% for employers and 2.8% for employees for social security, and about 7% employer contribution for family allowances. Mandatory benefits aim to ensure employee well-being and financial security, with compliance essential for legal adherence.

Beyond legal requirements, many employers enhance packages with optional benefits such as private health insurance, life insurance, housing and transportation allowances, meal subsidies, and professional development programs. Private health insurance coverage varies, often subsidized by employers, and is increasingly expected by employees. Employers also commonly offer supplementary pension plans, which can be tax-advantaged, to support long-term retirement savings.

Benefit packages differ by company size and industry, with larger firms and multinationals offering more comprehensive perks. To remain competitive, employers should benchmark industry standards, conduct employee surveys, analyze costs, and ensure legal compliance in their benefits offerings.

Employment agreements in Cameroon are governed by the Labour Code, ensuring clarity on work terms, rights, and obligations. Key contract types include fixed-term (CDD), indefinite-term (CDI), part-time, and seasonal contracts, each suited to specific employment needs. Employers must include essential clauses such as identification, job description, work location, start date, working hours, salary, benefits, leave entitlements, termination conditions, and references to collective agreements.

Probationary periods are regulated, with a maximum of three months for unskilled workers and six months for skilled or managerial staff, renewable once within these limits. Employees on probation enjoy the same rights as regular staff, including minimum wage and working conditions. Confidentiality and non-compete clauses are common; they must be reasonable in scope and duration to be enforceable, with some cases requiring compensation during non-compete periods.

Legal procedures for modifying or terminating contracts emphasize mutual agreement and written documentation. Employers need valid reasons for dismissal, provide notice and severance pay, and must adhere to fair dismissal practices to avoid liability. Severance pay depends on the employee’s tenure and salary.

Remote work in Cameroon is expanding, driven by technological progress and employee demand for better work-life balance. Currently, Cameroon's labor laws do not explicitly regulate remote work, but employers must formalize arrangements in contracts, ensure compliance with working hours, and prioritize health and safety, including workspace risk assessments.

Flexible work options such as flextime, compressed workweeks, job sharing, and part-time work are increasingly adopted, offering employees greater schedule control. Key data points include:

Employers should implement clear policies and leverage suitable technology to ensure productivity and legal compliance in remote work setups.

Terminating an employee in Cameroon requires strict compliance with labor laws, including adherence to notice periods, procedural steps, and severance pay obligations. Employers must provide written notice, conduct hearings for disciplinary dismissals, and notify labor authorities for collective dismissals. Failure to follow proper procedures can lead to legal disputes and penalties.

Notice periods vary based on service length:

Severance pay, calculated as a percentage of monthly salary per year of service, is mandatory for dismissals not due to misconduct:

Employees are protected against wrongful dismissal, with legal recourse for unfair terminations, potentially resulting in reinstatement or damages. Employers should maintain detailed documentation of termination processes to mitigate legal risks.

Cameroon's economic environment is increasingly adopting flexible work arrangements, with a notable rise in freelancing and independent contracting across various sectors. This trend provides businesses with agility and access to specialized skills while offering individuals autonomy and diverse opportunities. For employers, understanding the legal framework and compliance obligations is crucial to prevent misclassification, which can result in significant penalties. Proper classification hinges on factors such as control, integration, duration, financial dependence, and provision of tools.

Formalizing relationships through written contracts is essential, including clear terms on scope, payment, and intellectual property rights. Contractors must manage their own tax obligations, such as income tax, VAT, and business tax, and consider obtaining personal insurance. Common industries utilizing freelancers include IT, creative services, consulting, education, media, construction, and healthcare, driven by the need for specialized skills and project-based work. The digital economy's growth particularly boosts demand in IT and creative sectors.

Cameroon requires foreign nationals to obtain visas and work permits before employment, with various visa types tailored to different employment scenarios. Key categories include Business Visa, Work Visa, Temporary Work Permit, and Intra-Company Transfer Visa. Employers must initiate work permit applications, which involve submitting documents such as a valid job offer, educational certificates, CV, passport, medical and criminal certificates, proof of accommodation, and employer commitments. The process includes application review, possible labor market testing, approval, and subsequent visa application by the employee.

The application process typically takes several weeks to months, with fees varying by permit type and duration. Once approved, foreign nationals may qualify for permanent residency after 5-10 years of legal residence, contingent on fulfilling criteria like clean criminal record and societal integration. Dependents can be sponsored through specific visa options, requiring proof of relationship and financial capacity. Employers and employees must adhere to compliance obligations, including maintaining valid documentation, reporting changes, and ensuring legal employment. Non-compliance risks penalties such as fines, deportation, or employment bans.