Employers, when contemplating business expansion in Cameroon, consider partnering with an Employer of Record (EOR). A Cameroon-based EOR expertly manages employment-related functions such as payroll, taxes, and compliance with local labor laws on your behalf. This strategic collaboration enables you to concentrate on core business operations while ensuring meticulous legal compliance in Cameroon.

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Employers work with EOR partners for two reasons:1) to hire without a local entity 2) to remain compliant with labor laws in Cameroon.  For employers, leveraging a Cameroon EOR/PEO ensures accelerated market entry while maintaining cost-effectiveness.

This is mainly because establishing an entity in Cameroon can cost several thousand dollars and take several weeks for incorporation. 

Secondly, when hiring from the country, employers must be aware of labor laws in the country. Cameroon’s labor laws have some unique aspects that can stump even seasoned employers. For example, employees are entitled to 2.5 days of leave per month worked, which equates to 30 days annually. In contrast the US has no federal mandate for paid annual leave.

EORs help streamline hiring by acting as a one-stop shop for all your HR needs - employment contracts, benefits administration and payroll. Their ability to tailor services to your workforce needs enhances your expansion strategy, making them invaluable allies in navigating Cameroon's diverse business environment.

For employers considering EOR/PEO services in Cameroon, it's important to understand that pricing can vary based on factors such as your workforce size, service needs, and project complexity. Typically, EOR/PEO service providers in Cameroon offer pricing structures that involve a monthly fee per employee or a percentage of the employee's salary. This flexible pricing approach allows employers to select the services that best match their specific needs and budget when expanding their business in Cameroon.

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Key Metrics For Foreign Employers 

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The table below depicts key indicators from the Global Talent Competitiveness Report for employers wishing to hire from Cameroon.

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Source: The Global Talent Competitiveness Index 2023

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Through the Gloroots’ Recrew platform, you can discover amazing talent in Cameroon.

In Cameroon, "misclassification of employees" refers to the inaccurate categorization of workers by employers, typically when a worker is wrongly labeled as an independent contractor or exempted from certain employment regulations and benefits. This misclassification can deny employees their legal protections and benefits.

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Engaging a PEO/EOR in Cameroon can effectively mitigate the risks linked to misclassification. These experts ensure compliance with labor laws, accurate employee classification, precise payroll processing, and access to comprehensive benefits. This strategic partnership allows businesses to focus on their core operations while entrusting employment-related responsibilities to experienced professionals, reducing legal and operational risks.

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Employment contract

1. Contract Duration: Employment contracts in Cameroon should specify whether they are for a fixed term or indefinite. Fixed-term contracts mention a specific period, while indefinite-term contracts have no set end date.

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2. Currency of Compensation: Compensation must be in XAF, the official currency of Cameroon and the Central African CFA franc region.

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3. Written Contracts: Contracts exceeding three months should be in written form to document terms and conditions.

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4. Contract Contents: Comprehensive contracts should cover job descriptions, compensation, working hours, termination conditions, probation periods, benefits, confidentiality/non-compete clauses, dispute resolution, applicable law, and jurisdiction.

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5. Local Legal Compliance: Ensure contract compliance with local labor laws, and consider legal counsel or HR expertise for drafting.

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6. Translations: If not in French or English (Cameroon's official languages), contracts should be translated, and both versions provided to employees.

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Creating clear, compliant employment contracts in Cameroon helps establish strong employment relationships while minimizing potential disputes and legal issues.

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This might sound overwhelming—but it doesn’t have to be. A solution like Gloroots eliminates the barriers for you. With Gloroots’ Employer of Record offering, hiring and managing employees globally is a piece of cake.

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Get an overview of what you need to know when hiring in Cameroon .

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Working time

The workweek in Cameroon consists of a maximum of 40 hours.

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Overtime

In Cameroon, overtime work is compensated according to a structured pay scale. 

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• For the initial 8 hours of overtime, employees receive an additional 20% of their hourly wage. 
• If the overtime extends into the second 8-hour block, the rate increases to 30% of the hourly wage. 
• Beyond that, for the subsequent 4 hours, workers are entitled to 40% of their hourly salary. 
• Sundays and night shifts also come with different compensation rates, with both earning employees 40% and 50% extra of their hourly wage, respectively. 

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This system ensures that employees are fairly rewarded for their additional efforts during overtime, depending on the specific circumstances and hours worked.

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Public Holidays

The country observes 10  public holidays employees can take as paid days off.

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Minimum Wage

Cameroon's minimum wage is established at 41,875 CFA per month.

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Annual Leave

Employees are granted annual leave up to 25 days.

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Paid Sick Leaves

Employees typically have a right to a minimum of 5 days of paid sick leave annually. In cases where an employee sustains an injury or falls ill while at work, the employer is obligated to cover the costs of medical treatment.

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Maternity leaves

Female employees usually have a right to 14 weeks of paid maternity leave. They can choose to take 4 weeks before childbirth or 6 weeks if their doctor recommends confinement. The National Social Insurance Fund covers the expenses associated with maternity leave.

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Paternity leaves

Fathers can utilize their 10 days of paid family leave as paternity leave.

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Tax and Social Security contribution

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Employee Income tax

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In Cameroon, employment can be ended by both the employee and the employer. The employer has the authority to terminate employment for valid reasons such as severe misconduct, deliberate disobedience, or contract violations. In cases where termination occurs without valid reasons, the employer is required to provide severance pay to the employee.

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Severance Pay

In Cameroon, severance pay is obligatory for employees who are dismissed after completing two years of service. The Ministry of Labor is responsible for determining the specific amount of severance compensation.

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Notice Period

In Cameroon, the notice period for both permanent employees and those on probation is one month.

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Probation period

Probationary periods of a maximum duration of 6 months are permitted, and a written agreement is required. For managerial staff, an 8-month probationary period is typically applicable.

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Expanding your workforce globally poses intricate compliance challenges for employers. Navigating local employment laws, payroll procedures, DE&I compliance, GDPR, and data protection can be overwhelming. Establishing local entities and keeping pace with evolving regulations adds complexity.

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Gloroots simplifies these complexities, offering a unified platform to manage tasks efficiently. Our in-house experts safeguard you from cross-border employment and payroll compliance risks. We handle employment contracts, payments, and benefits compliance, freeing you to concentrate on talent screening.

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Our commitment is a stress-free global employment experience for both you and your employees in Cameroon. Contact our experts to kickstart your global hiring campaign with confidence.

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Expanding your team in Cameroon involves hiring the right employees at the right time and for the right roles. Employers operating in Cameroon must establish a local presence to manage compliance, payroll, tax obligations, and benefits. Navigating employment regulations in Cameroon can be challenging.

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Gloroots offers a global Employer of Record (EoR) service to simplify these complexities. With Gloroots as your partner, you can offload payroll, tax compliance, benefits management, and regulatory tasks in Cameroon. This allows you to focus on what matters most: your employees and company growth. Streamline your expansion efforts in Cameroon with Gloroots, ensuring your workforce remains a top priority.

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