Cameroon PEO & Employer of Record Services
Global PEO Services (GPS) helps companies hire employees in Cameroon without establishing a legal entity. All human resources, benefits, payroll, and tax needs for the employees are managed by the Global PEO, while the new hires and headquarter teams focus on your business goals.
When hiring employees in Cameroon, establishing a subsidiary or branch office is not always the best route, as it’s often a lengthy and expensive process. Hiring via a Professional Employer Organization (PEO), or Employer of Record (EOR), is a faster and often more effective option – especially when starting up in a new country.
Global PEO Services hires the employees on your behalf, legally contracting them through our subsidiary in accordance with Cameroon labor laws. As a result, the burden of compliance is on us and the employees can begin work for your company in a matter of days. PEOs/EORs provide you with a streamlined option for hiring employees, testing markets, and responding to growing business needs in Cameroon. With Global PEO Services, you get control without taking on legal entity liabilities, contractor risks, or sacrificing on talent or speed to market.
Cameroon - Country Overview
Cameroon is a lower-middle-income country with a population of 23.3 million people. The country’s economy is relatively diversified with services contributing around 40 percent. Cameroon’s oil reserves and favorable agricultural output make it one of the most resource-rich and resilient primary commodity economies in sub-Saharan Africa. Also, Cameroon’s other natural resources include high value timber species, minerals, cotton, maize, cassava, cocoa, and coffee. Since 1990, a series of reforms and programs backed by the International Monetary Fund (IMF) and World Bank have helped Cameroon facilitate efficiency in agriculture, spur trade, attract foreign investment, and recapitalize banks.
Central African CFA franc (XAF)
Unitary Presidential Republic
Other Major Cities
Douala, Garoua, Kousséri, Bamenda
Employment Contracts in Cameroon
Employment contracts are stipulated under the Section 24 of Law No. 92/007. Employment contracts can be either fixed-term or unspecified. Fixed-term contracts’ termination date is fixed in advance by both parties and can’t be renewed for more than two years. The contracts are considered fixed-term but non-renewable if:
- The contract’s termination depends on the occurrence which is certain and is precisely indicated but doesn’t depend on the will of the parties
- The contract is intended for executing a particular task
Employment contracts which can be terminated any time and have no fixed termination date are called unspecified period contracts. Probationary hiring wherein both employers and employees agree to the employee’s efficiency assessment, wages, living and working conditions, safety and hygiene conditions must be in writing and should not exceed six months.
Working Hours in Cameroon
Employees can’t work for more than 40 hours in a week. Work done between10 p.m. and 6 a.m. is considered night work. Employees are entitled to at least 24-hour period in a week which can’t be replaced by any form of compensation.
The National Labor Law stipulates that employees who work overtime must be paid overtime but doesn’t mention specific amount. The National Trade Collective Agreement specifies that who work overtime during the day are entitled to 150 percent of their regular pay while those who work overtime during nights are entitled to 200 percent of their regular pay.
Employee Leave in Cameroon
The following national holidays are observed in Cameroon:
- Jan. 1: New Year’s Day
- Feb. 11: Youth Day
- March 8: International Women’s Day
- Good Friday
- May 1: Labor Day
- Ascension Day
- May 20: National Day
- Djoulde Soumae / Korite (End of Ramadan)
- Aug. 15: Assumption Day
- Djoulde Laihadji / Tabaski (Feast of Sacrifice)
- Dec. 25: Christmas
Full-time employees receive entire pay on holidays.
After one year of employment, employees are entitled to 1.5 days of annual leave for each month of employment. After completing 5 years of service, employees qualify to receive an additional 2 days leave per month. Employees who have accumulated more than 12 days of leave may split their leaves.
Pregnant employees are entitled to 14 weeks of maternity leave out of which 4 weeks can be taken before the expected date of delivery. Maternity leave can be extended by 6 weeks in case of a pregnancy-related illness. If the child is born before the expected date of delivery, the rest period is extended accordingly so that the employee receives the full 14 weeks of leave. If the child is born before the expected date of delivery, the prenatal leave is extended without any reduction in the maternity leave’s duration. Employees are paid 100 percent of their last monthly wages for 4 weeks before and 10 weeks after the expected date of delivery. These 10 weeks can be extended to 13 weeks if any complications arise due to pregnancy or childbirth.
Employees are entitled to 10 days of paid special leave for attending family-related events directly associated with their home.
Employees are entitled to at least 5 days of paid sick leave every year. If an employee gets injured or ill at work, the employer is to bear the medical expenses.
Fathers can use their paid family leave (10 days) for paternity leave.
Employee Benefits in Cameroon
Old Age Pension
Employees aged 60 with a minimum 20 years of coverage and 180 months of contributions that includes 60 months in the previous 10 years qualify for old-age pension. The contribution rate toward social security has been increased to 4.2% from 2.8% of the monthly salary while the ceiling for social security contributions has been increased to 750,000 CFA Francs from 300,000 CFA Francs.
Employers are required to contribute 4.2% of their covered payroll toward social security system.
Employees aged less than 60 qualify for disability benefit if they have:
- a minimum of 66.7% of assessed degree of disability
- at least 5 years coverage
- at least 6 months of contributions in the previous year
Constant attendance supplement is paid if the employee needs the constant attendance of others to perform work. The disability pension is replaced by an equivalent old-age pension including any constant supplement at the normal retirement age.
Eligible survivors of the deceased include widow/widower, children aged less than 14 (18 if an apprentice and 21 if disabled or a student), and dependent parents. Survivors are entitled to receive benefits if the deceased was receiving pension, qualified for disability or old-age pension, and had at least 180 months of coverage at the time of death. Widows/Widowers are entitled to 50 percent of the deceased’s old-age pension but cease to receive pension if they remarry.