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How To Hire New Remote Employees | Cameroon

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Cameroon

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Cameroon

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Cameroon

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capital city
Cameroon
currency
Central African CFA franc (XAF, FCFA)
language spoken
French and English
payroll frequency
Daily, weekly, bi-weekly and monthly
employer taxes
3,7% t0 7%
vat - standard rate
19.25%
cost of living index
297,411CFA
gdp - real growth rate
0.7 (2020)
termination process
Varies
employee protections
Moderate
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vat - standard rate
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employee protections
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Overview

Cameroon's financial freedom score is 52.9, ranking it at 136 in the 2022 Index. Cameroon is categorized as the 27th of 47 countries in Sub-Saharan Africa. From 2017, the country's financial growth steadily increased and it raised its financial freedom by 1.1 points. In 2020, this steady growth got diverted but it recovered in 2021. Fiscal status and business freedom are high, government spending is also strong.

Public Holidays

1 January- New Year's Day

11 February- Youth Day (in Cameroon)

15 April- Good Friday

2 May- Labour Day 

2–3 May- Eid al-Fitr

20 May- National Day (of Cameroon)

26 May- Ascension Day

10–11 July- Eid al-Adha

15 August- Assumption of Mary

7–8 October- Prophet's Birthday

25 December- Christmas Day

Minimum wage

Cameroon's minimum wage is government-mandated. No employee is eligible for lesser compensation than the minimum pay rate. 

Payroll cycle

The payroll in Cameroon is done monthly, weekly, hourly, daily, or bi-weekly.

Taxation

Income Taxe Rates
Net Income Rate
0 - 2,000,000 XAF 11%
XAF 2,000,001 - XAF 3,000,000 16.5%
XAF 3,000,001 - XAF 5,000,000 27.5%
More Than XAF 5,000,000 38.5%

Leaves

Annual leave

A full-time worker is eligible for a monthly accrued 1.5 leave days. Annual leaves are  based on several factors, such as:

  • For five employment years – an extra two days/month. 
  • For family events – workers receive a 10-day paid leave.

Maternity Leave

Women have the right to a 14-weeks leave throughout their pregnancy, with four weeks post-pregnancy. The National Social Insurance Fund compensates for maternity leaves days.

Paternity Leave

There is a mandatory 10-day paid paternity leave in Cameroon.

Sick Leave

Workers are eligible for five days of paid sick leave. If the worker gets a work injury, the organization should reimburse for the medical costs.

Termination process

Fixed-term agreements can only be canceled because of severe misbehavior, unforeseen circumstances, or both parties' express approval. Agreements with unlimited terms can be canceled at any moment by either the organization or employee.

Notice Period

The Labor Minister stipulates the termination notice based on the worker's age and profession. Employees are entitled to one day off/week throughout the notice period to sear for another job.

Severance

Employees are eligible for severance pay that is determined by the Labor Minister. Employees that have worked for two years and more are eligible for severance pay.

Probationary Period

Cameroon's probation periods are:

  • Six months - regular workers
  • Eight months - administration staff

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