Employer of Record (EOR) in Cameroon - Hire & Pay Employees & Contractors with a Global PEO in Cameroon | Employer of Record (EOR)

Employer of Record (EOR) in Cameroon is a company that takes on the responsibility of being the legal employer for a worker. This includes managing payroll, benefits, and other employment-related tasks on behalf of the worker's actual employer.

Discover the key considerations and essential details you should be aware of before you hire your remote team in Cameroon.

An employer of record in Cameroon assist you with the following

Draft local employment contracts
Register employees with the social security agencies
Withholding taxes
Provide Benefits
Comply with the local labor laws in Cameroon
End to End Payroll
Work Permit
Hiring and Payments

Discover the key considerations and essential details you should be aware of before you hire your remote team in Cameroon.

Facts about Cameroon

Emerging Startup Landscape: Cameroon is recognized as an emerging startup hub, with growing activity in sectors like fintech, agritech, e-commerce, and health tech.
Cities Gaining Global Recognition: According to the 2025 StartupBlink Global Startup Ecosystem Index, three Cameroonian cities—Douala, Yaoundé, and Buea—are ranked among the top 1,000 global startup ecosystems. Douala stands out with significant growth in its global ranking.
Douala on the Rise: Douala, Cameroon’s economic capital, made a notable leap in the global startup rankings, climbing over 50% compared to the previous year.
Legislative Push for Startups: The proposed Cameroon Startup Act is designed to improve the startup climate by tackling key challenges such as regulatory red tape, limited funding opportunities, and a lack of infrastructure.
Youth-Driven Innovation: The startup ecosystem is predominantly led by young, ICT-educated entrepreneurs, particularly men, who are creating digital solutions that promote financial inclusion, better agriculture, and improved healthcare access.
Challenges to Growth: Despite its potential, startups in Cameroon often struggle with restricted access to capital, outdated infrastructure, and cumbersome regulations.
U.S. Market Entry Strategy: Most U.S. firms entering the Cameroonian market partner with local agents or distributors, often establishing a local footprint through representatives rather than physical offices.

Contract of Employment in Cameroon

A contract of employment in Cameroon is a legal agreement between an employer and an employee. It explains what each party agrees to do—employees agree to work under the employer’s direction, and employers agree to pay them.

According to Section 23 of the Labour Code (1992), a contract becomes legally binding once both parties sign it. If one party breaks the terms, the other can report the issue to the Labour Inspector. If it's not resolved, they can go to the High Court.

The main law that governs employment is the Labour Code – Law No. 92/007 of 14 August 1992. Other supporting laws include:

The Constitution of Cameroon
Law No. 016/MTPS/SG/CJ of 26 May 1993
Order No. 015/MTPS/SG/CJ of 26 May 1993

Types of Employment Contracts: The main types are fixed-term and indefinite contracts. Fixed-term contracts last up to two years, renewable once, and don’t require notice for termination unless there's misconduct or mutual agreement. Indefinite contracts have no set end date and can be ended by either party with written notice. Other contracts include temporary, occasional, and seasonal, each limited in duration. If these exceed their legal time frames, they automatically convert into indefinite contracts, ensuring legal protection for both employers and employees.

Employment Laws in Cameroon

Minimum Wages

According to Cameroon’s Labor Code, the National Labor Advisory Board is responsible for setting the country’s minimum wage. The current Interprofessional Guaranteed Minimum Wage (SMIG) is XAF 43,969 per month (Central African CFA francs).

Working Hours

In Cameroon, the standard working hours are 40 hours per week, typically spread across 8 hours per day from Monday to Friday.

Overtime

Up to 20 hours of overtime per week is allowed. The first eight overtime hours are paid at 120% of the regular hourly rate. The next eight hours are paid at 130%, and any additional hours (within the weekly 20-hour cap) are paid at 140%. Work done on Sundays or at night earns 140% of the base rate, while public holiday overtime is paid at 200%.

Payroll Cycle

In Cameroon, employers are required to pay wages no later than the eighth day of the month after the wages are earned. While monthly payment is the standard, the law permits shorter intervals—such as every 15 days—if requested by the employee. Certain trades and occupations may also have different payment schedules as allowed by law.

Probation Period

In Cameroon, the probation period is a preliminary phase of employment used by employers to assess an employee's skills, conduct, and suitability for the job. According to Section 28 of the Labour Code, this period must be clearly stated in writing and should occur before the final employment contract is signed.
The maximum duration of probation is six months, including any extensions. However, for managerial roles, it may be extended up to eight months. During this time, the employer decides whether to confirm or terminate the employment. While the employee is entitled to remuneration, they do not enjoy the full job security of a confirmed employee.

Termination and Notice Period in Cameroon

When ending an employment relationship in Cameroon, the required notice period is determined by the employee’s job classification and length of service. These notice periods ensure both employer and employee have time to prepare for the termination.

For employees in Categories I to VI (including household workers), the required notice is:

15 days if employed for less than 1 year,
1 month for 1 to 5 years of service, and
2 months for service beyond 5 years.

For Categories VII to IX:

1 month for less than 1 year,
2 months for 1 to 5 years, and
3 months for over 5 years.

Employees in higher job categories (X to XII) require:

1 month of notice for less than 1 year of work,
3 months for 1 to 5 years, and
4 months for more than 5 years.

If a collective labor agreement specifies longer notice, that agreement takes precedence. These notice periods allow a structured transition for both parties during contract termination.

13th Month Salary

In Cameroon, employers are not legally obligated to provide a 13th-month salary or equivalent bonus. While some companies may voluntarily offer this benefit as part of their internal policies or collective agreements, it is not mandated by labor legislation.

Severance Pay

In Cameroon, employees are entitled to severance pay if they have completed at least two years of continuous service and were not dismissed for serious misconduct. The severance payment is calculated as a percentage of the employee’s monthly total wages for each year of service, increasing with tenure:

20% per year for the first 5 years
25% per year from the 6th to the 10th year
30% per year from the 11th to the 15th year
35% per year from the 16th to the 20th year
40% per year from the 21st year onward

This benefit compensates long-serving employees upon termination.

Personal Income Tax in Cameroon

Personal income tax (PIT) on salaries in Cameroon is applied using a progressive tax scale based on an individual’s net income, rounded down to the nearest thousand Central African CFA francs (XAF). The tax rates increase as income rises, with the lowest rate starting at 11% for incomes up to XAF 2,000,000, and the highest rate at 38.5% for incomes above XAF 5,000,000.

For income earned from other activities (non-salary income), a flat tax rate of 33% is applied. International tax agreements may modify these rates.

Personal Income Tax Rates Table

Net Income (XAF)	Tax Rate (%)
0 to 2,000,000	11
2,000,001 to 3,000,000	16.5
3,000,001 to 5,000,000	27.5
More than 5,000,000	38.5

Note:: Other sources of income (non-salary) are taxed at a flat rate of 33%.

Work Visas and Work Permits in Cameroon

Foreign nationals who want to work in Cameroon need both a work visa and a work permit. The process involves the employer, government authorities, and the employee.

Work Visa Types

Short-Stay Work Visa (Type C): For short-term assignments or business visits (less than 90 days).
Long-Stay Work Visa (Type D): For work lasting more than 90 days. This visa is needed before applying for a work permit.

Work Permit Types

Temporary Work Permit: For short-term employment, usually up to one year.
Long-Term Work Permit: For longer employment, renewable annually.
Individual Work Permit: Issued to a foreign employee sponsored by a specific employer.
Intra-Corporate Transfer Permit: For employees transferred within the same company to Cameroon.
Trainee Work Visa: For those coming to Cameroon for training.
Specialized Work Permit: For workers with skills not readily available locally.

Work Permit Application Process

Employer Initiates Application: The employer submits a request to the Ministry of Labor and Social Security for permission to hire a foreign worker.
Document Submission: The employer provides key documents such as:

Employment contract copy
Job description
Certified academic/professional certificates
Medical certificate
Police clearance
Company’s memorandum, articles of association, organizational chart, and profile

Approval and Issuance: If approved, the Ministry issues the work permit.
Visa Application: The employee applies for a long-stay work visa at a Cameroonian embassy or consulate with the work permit.
Residence Permit: After arriving in Cameroon, the employee must apply for a residence permit via the General Delegation for National Security.

Employee Benefits in Cameroon

Mandatory Employee Benefits in Cameroon

Only about 10% of the population is covered by the National Social Insurance Fund (CNPS), which offers several protections including old-age pensions, early retirement pensions, medical benefits, as well as death, disability, and funeral allowances for employees or their beneficiaries. Both employees and employers contribute 4.2% of the employee’s wages to this fund. Contributions are calculated based on a maximum monthly salary of CFA 750,000 (approximately US$1,204 in 2023).

Additional Employee Benefits

Medical Coverage

Cameroon's labor law requires employers to provide medical care to their employees and their families. This can be through company medical centers, health insurance plans, or mutual aid societies. Dependents of employees are also entitled to the same medical benefits.

Retirement Benefits

Voluntary occupational pension plans are uncommon among employers. Only a limited number offer supplementary retirement benefits through group retirement plans, which are usually structured as defined contribution (DC) schemes.

Disability Benefits

Standalone short-term disability insurance plans provided by employers are rare, and there are no standalone long-term disability plans available in the country.

Death and Accidental Death & Dismemberment (AD&D) Benefits

Employer-sponsored voluntary life insurance is also uncommon. However, some companies provide death benefits through group life and funeral insurance policies. AD&D coverage is similarly limited but may be included as part of group personal accident or group life insurance plans offered by certain employers.

Leave Policy in Cameroon

Cameroon's leave policies are governed by the Labor Code No. 92/007, dated August 14, 1992. Employees are entitled to several types of statutory and optional leave, with specifics depending on employment contracts or collective agreements.

Annual Leave

Employees accrue 1.5 days of paid leave per month, totaling 18 days per year.
This applies after one year of service.
Young workers (under 18) earn leave at 2.5 days per month.
Leave must be used within 2 years and expires 3 years after contract termination if unused.
Leave compensation is paid one day before the leave starts.
Substituting leave with cash is not allowed.

Family Leave

Employees can take up to 10 days of paid leave annually for urgent family reasons.
This can be used by either parent, including in lieu of paternity leave.

Sick Leave

Employees are entitled to 30 days of paid sick leave.
Up to six additional months may be granted with valid medical certification.
Longer durations can be negotiated through individual or collective agreements.

Maternity Leave

Female employees with at least three months of service are entitled to 90 days of maternity leave, with 42 days post-childbirth.
Leave is paid at 100% of salary, funded by the National Social Insurance Fund (CNPS).
Medical exams in the 3rd–4th and 7th–8th months are required to qualify.
Additional leave may be granted in case of complications, miscarriage, or if the employee has young children.
Up to 12 extra days may be given at 50% pay, depending on circumstances and agreements.

Paternity Leave

Cameroon does not officially provide separate paternity leave.
Fathers can use the 10-day family leave for paternity purposes.

Education & Professional Development Leave

Employees or apprentices may take up to 18 days of unpaid leave for training or courses.
This must be related to their role or union activities and must be approved by the Ministry of Labor and Social Security.

Public Holidays in Cameroon

Cameroon observes 10 official public holidays, including:

New Year's Day
Youth Day
Good Friday
Labor Day
End of Ramadan
National Day
Ascension Day
Id-el-Kebir
Assumption Day
Christmas Day

If a public or religious holiday falls on a Sunday, the next working day may be declared a holiday.

In conclusion, partnering with an Employer of Record (EOR) in Cameroon is a strategic solution for companies looking to expand into Central Africa without the need to establish a legal entity. EOR services in Cameroon offer comprehensive support across employment compliance, payroll processing, tax contributions, and local HR operations. With a complex regulatory environment and evolving labor laws, an EOR helps businesses stay fully compliant while reducing administrative burdens and legal risks. This enables companies to enter the Cameroonian market faster, manage local talent efficiently, and focus on core business objectives. Given Cameroon’s growing economy and its role as a regional gateway, EOR services provide a solid foundation for compliant, cost-effective, and scalable growth.

Contributor	Contribution Type	Rate (%)	Basis of Calculation	Notes
Employee	Old age, disability, survival	4.2%	Taxable salary (max XAF 750,000/month)	Voluntary insurance rate: 8.4%
Employer	National Social Insurance Fund	11.2%	Taxable salary (max XAF 750,000/month)
Employer	Industrial Accident Insurance	1.75%, 2.5%, or 5%	Gross salary + benefits in kind	Based on company classification: A, B, or C

Employer of Record (EOR) in Cameroon - Hire & Pay Employees & Contractors with a Global PEO in Cameroon