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Cameroon, located in Central Africa, is known for its cultural diversity, with over 250 ethnic groups and multiple languages spoken, including French and English. The country's economy is primarily based on agriculture, petroleum, and natural resources, making it a vital player in the region. Cameroon boasts a rich natural environment, featuring diverse ecosystems, including rainforests and savannas, which support a variety of wildlife. Despite its resources, the country faces challenges such as political instability, infrastructure deficits, and economic disparities. Overall, Cameroon presents a blend of opportunities and challenges for employers and investors.
Permanent Employment
The labor law defines permanent employment in terms of employment contracts made for an unspecified period. Such agreements can be oral or written. A labor contract of unspecified duration may be terminated at any time at the will of either party by providing a written notice.
Fixed-Term or Specific-Purpose Contracts
In Cameroon, the labor law limits the duration of fixed-term contracts to 2 years with the possibility of a one-time renewal for the same term. They can also be concluded for specific predefined work that is accurately indicated in the contract (in this instance, the contract cannot be renewed). A fixed-term contract with a duration of over 3 months must be concluded in writing.
Temporary Employment
An employer can hire temporary workers for the following reasons:
To replace an employee who is absent or whose contract has been terminated
For the completion of a particular work in a specific time limit, as well as seasonal work
Temporary employees may be hired through a temporary job contractor. The contract of employment between the temporary job contractor and the employee provided to a user (the employer the person will be working for) must be made in writing. The duration of such an agreement cannot exceed 1 year with the same user.
Written Agreements
In Cameroon, there are no specific definitions of what constitutes a written contract. According to the law, agreements concluded for a fixed term of more than 3 months, as well as those including a probationary period, must be made in writing.
Employers can stipulate a non-compete clause in employment contracts such that in the event of termination, the employee shall not engage in an activity liable to compete with the employer if the contract is broken by the employee or if the contract is broken due to a serious offense by the employee. Such prohibition will not apply outside a radius of 50 kilometers from the employee's workplace, and its duration must not exceed 1 year.
Oral Agreements
In Cameroon, employment contracts for an unspecified duration or specified duration of under 3 months can be concluded orally.
Implied Agreements
In Cameroon, there are no provisions or guidance on implied contracts.
Probationary Period
A probationary period must be stipulated in writing and can last for a maximum of 6 months, along with renewals. The probation period for executives can be extended for up to 8 months.
Employees can be dismissed without any notice period and claim to compensation during the probation period.
Minimum Wage
According to the Labor Code of Cameroon, the National Labor Advisory Board sets the minimum wage in the country. The Interprofessional Guaranteed Minimum Wage (SMIG) is currently set at XAF 43,969 (Central African CFA francs) per month.
Wages must be paid at least once a month, except when allowed by law in certain trades and occupations. Employees can request a shorter payment period of 15 days. Wages must be paid no later than the eighth day of the month following the end of the month in which they were due.
Overtime, Holiday and Vacation Pay
Overtime is allowed for up to 20 hours per week, subject to the prior written authorization of the labor inspector. It can be allowed in cases of extraordinary work, increased workload, or shortage of manpower. The overtime wages are paid as follows:
30% increase on regular wages for the first eight hours of overtime in the week
50% increase on regular wages for every additional hour of overtime after the first eight hours in the week
Work done during weekly rest days is compensated at a rate of 40% higher than the regular wages. Employees who are asked to work during public holidays are paid an additional 50% of the regular wages.
The Labor Code of Cameroon states that the employment contract can remain suspended for 6 months if the employee is sick. Permanent employees with a contract for unspecified duration are paid 100% of their remuneration for the duration of the notice period if the sick leave exceeds the notice period or for the duration of sick leave if it is less than the notice period of the employee. Fixed-term employees are paid for the duration of their notice period based on the length of their employment.
January 1 - New Year's Day
February 11 - Youth Day
March 31 - Eid al-Fitr
April 18 - Good Friday
May 1 - Labour Day
May 20 - National Day
May 29 - Ascension Day
June 7 - Eid al-Adha
August 15 - Assumption of Mary
December 25 - Christmas Day
Pension
The retirement age in Cameroon is 60 years for eligible persons who have been registered with the National Social Insurance Fund for at least 20 years, have completed at least 60 months of insurance in the last 10 years, and have ceased all salaried activities.
The monthly pension is equal to 30% of the average monthly salary and is increased by 1% for every year after 180 days. The source of funds is the contributions to the National Social Insurance Fund at 4.2% paid by the employer and 4.2% paid by the employee. The minimum pension is 30% of the minimum wage, and the maximum is 80% of the average remuneration of the employee.
Dependents/Survivors Benefit
In Cameroon, survivors are entitled to a pension in case of death of an insured employee who is the holder of either an old-age pension, invalidity pension or early pension, or who fulfills the conditions for pension by contributing 180 months for insurance. The amount of survivor pension is as follows, calculated as the percentage of the allowance received by the deceased employee:
50% of the monthly pension for a widow or a widower
25% for a child if one of the parents deceased
40% for orphans
The following persons are considered survivors:
A widow who is at least 50 years of age or disabled, provided the marriage was contracted for at least one year.
A disabled widower dependent on the deceased employee
Dependent children of the deceased
If the deceased employee did not fulfill the contributions condition, survivors receive a lump-sum grant based on the number of contributions made by the deceased employee.
Invalidity Benefit
The National Social Insurance Fund of Cameroon provides a disability benefit to insured employees below the age of 60 years if they have been registered with the National Social Insurance Fund for at least five years and have completed six months of insurance in the last 12 calendar months preceding the onset of disability. These contribution conditions are not applicable in case of disability work-related accidents. The monthly disability pension amount is 30% of earnings, increased by 1% for each year of contributions after 180 months.
Types of Visas
Transit visa - issued to foreign nationals who are traveling to some other country via Cameroon, valid for up to 5 days
Tourist visa - issued to foreign nationals who enter Cameroon for a temporary visit, valid for up to 30 days
Temporary visa - issued to foreign nationals for multiple visits in Cameroon, valid for 3 months
Long-stay visa - issued to foreign nationals who wish to stay in Cameroon for more than 3 months, valid for up to 6 months
Work Permits
The law in Cameroon requires foreign nationals to obtain a work permit before starting a paid activity in the country. The application has to be submitted to the Ministry of Labor and Social Security. A work permit is issued for 2 years and is renewable indefinitely.
In Cameroon, the labor law indicates that the standard workweek is 40 hours. However, standard working hours may vary for different occupations. Employees working more hours than what is considered standard for their profession are eligible for overtime benefits.
Minimum Age
Per the Labor Code of Cameroon, the minimum age for working is 14 years. Young persons below the age of 18 years cannot be employed on a ship as a trimmer or a stocker. Night work in industries is also prohibited.
Young employees below the age of 18 years must be provided with a daily rest of at least 12 hours and are entitled to leave of 2.5 days per month.
According to the Labor Code of Cameroon, an employee is entitled to paid annual leave equal to 1.5 days of leave for every month of work done by the employee. For employees younger than 18 years, the leave is granted as 2.5 days per month of service. Employees accrue or accumulate annual leave after 1 year of service. The collective agreement of the company with the trade union or individual employment contract can provide for an increased duration of the leave.
If the contract is terminated or expires before the employee has exercised their right to leave, the employer must issue compensation in lieu of the leave.
Maternity Leave
The labor law of Cameroon provides maternity leave of 14 weeks to pregnant employees. It starts 4 weeks before the expected date of delivery. The leave can be extended by 6 weeks in case of medical complications. The employee is entitled to an allowance equal to her salary for the duration of the leave funded by the National Social Insurance Fund.
A pregnant employee may terminate her employment contract without notice and without being obliged to pay any compensation to the employer. An employer is prohibited from dismissing an employee during her maternity leave.
Paternity Leave
There is no statutory provision granting parental leave to employees in Cameroon. However, the Cameroonian Labor Code provides a special paid leave of up to 10 days annually that employees can take for family events directly concerning their own home. This leave is not deducted from the annual leave.
Notice Period
The duration of the notice period depends on the seniority and professional classification of the employee. It is broken down into categories listed below (unless a collective labor agreement stipulates a longer duration)
Category I to VI (all household employees): service under 1 year (15 days), between 1 and 5 years (1 month), more than 5 years (2 months)
Category VII to IX: service of less than 1 year (1 month), between 1 and 5 years (2 months), more than 5 years (3 months)
Category X to XII: less than 1 year (1 month), between 1 and 5 years (3 months), more than 5 years (4 months)
Severance Benefits
Severance pay is granted to employees who have worked for at least 1 year for the same employer and who are dismissed for reasons other than gross misconduct. It is paid in addition to the compensation for the notice period. Severance payment is calculated as a percentage of the average monthly salary of the employee multiplied by the number of years of service:
1st to 5th year - 20% of the monthly pay
6th to 10th year - 25% of the monthly pay
11th to 15th year - 30% of the monthly pay
16th to 20th year - 35% of the monthly pay
21st year onwards - 40% of the monthly pay
Personal Income Tax
The tax rates for employment income in Cameroon range from 10% for XAF 0-200,000 (Central African CFA francs) to 35% for earnings above XAF 5,000,0001.
An additional charge of 10% is levied as council tax. A 15% flat rate is applicable on income from stocks and shares. Income from business or professional activities is subject to a 30% tax rate.
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Local Laws & Regulations
We understand that local laws and regulations change and sourcing an accurate reference guide is not easy. Our data is researched and verified by our team of local international Employment Attorneys, HR and Benefit Professionals and Tax Accountants through our Atlas team and consultants, to ensure information up-to-date and accurate.
Our team of regional experts are here to support you with your global expansion plans. If you have any questions, contact us and we will be delighted to help.
