Below are the key points an employer must keep in mind while seeking employees in Cameroon
Employee Contract
Public and Provincial Holidays
Leave Information
Basic
An employment contract in Cameroon must mention the period for which it is drafted. The currency of compensation must be XAF instead of a foreign currency. Employment contracts of more than three months must be written and not verbal.
Probation Period
The probation period for employees in Cameroon is up to six months.
13th Month Pay
The 13th-month bonus is not mandatory for employers in Cameroon.
Employee Benefits
- Annual Leave
- Sick Leave
- Maternity Leave
- Housing Fund
- National Employment Fund
The payroll cycle in Cameroon is Monthly or Weekly.
The minimum wage in Cameroon is set to 43,969 CFA per month.
The standard working week in Cameroon is a maximum of 40 hours per week. Overtime is legal and must be compensated as given below:
Employer Payroll Cost:
| Scheme |
Employer’s Contribution |
|
Old-age, Invalidity and
Death Insurance
|
4.20% |
| Occupational Risk |
- Low risk (Group A) – 1.75%
- Medium risk (Group B) – 2.5%
- High risk (Group C) – 5%
|
| Family Benefits |
- 7% for employees covered by the general scheme,including domestic workers and house staff
- 5.65% for employees covered by agricultural and other similar schemes
- 3.7% for private education staff
|
Employee Payroll Cost:
| Scheme |
Employer’s Contribution |
| Old-age, Invalidity and Death Insurance |
4.20% |
Employee Income Tax
The tax assessment year in Cameroon runs from January 1 through December
31. Current rates of tax for income from employment income are as follows:
| Annual Income (Central African CFA Franc, XAF) |
Tax Rate |
| 0 to 2,000,000 |
10% |
| 2,000,001 to 3,000,000 |
15% |
| 3,000,001 to 5,000,000 |
25% |
| Above 5,000,001 |
35% |
VAT
The standard rate for VAT in Cameroon is 19.25%.
Employment in Cameroon can be terminated both by the employee and the employer. The employer can terminate the employment based on substantial grounds such as gross misconduct, wilful insubordination, or breach of contract. If the employment is terminated without any grounds, the employer must pay a severance to the employee.
The notice period in Cameroon for both permanent employees and employees on probation is one month.
Severance pay
Severance pay in Cameroon is mandatory for employees who are terminated after two years of service. The Ministry of Labor determines the amount for the severance.
A work visa is mandatory for individuals traveling to Cameroon for employment purposes. For this, the candidate must present proof that they will be earning money in Cameroon and an employment contract. The candidate must also submit their CVs and a detailed job description for the visa, amongst other paperwork.