Table of Contents

Cameroon

Table of Contents

Currency

Central African CFA franc (XAF)

Payroll Frequency

Monthly

Employer Taxes

5.70%

About Cameroon

Cameroon is an African presidential republic. The country has enjoyed political stability despite the power given to the head of state. The modern country is a union of the former French Cameroon and British Cameroon. The country has seen considerable development in agriculture, roads, railways and the petroleum industry. Cameroon borders Central African Republic, Chad, Republic of Congo, Equatorial Guinea, Gabon, and Nigeria. 41 percent of the land is forested. The country is also well resourced in minerals, petroleum, timber and hydroelectric power.

Cameroon’s ethnic groups include Cameroon Highlanders, Equatorial Bantu, Kirdi, Fulani and Northwestern Bantu. Christianity makes up the most practiced religion, followed by Islam. Cameroon has shown a $100 per capita GDP growth for the last 3 years, bringing the total to $3700. The country has a 4 percent industrial growth rate and a 4.3 percent unemployment rate. The economic growth has shown a decline after stabilizing at an average of 5.8 percent in 2015 to 4.7 percent in 2017.

Employment Relationship

• 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 Contratcs

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. 

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.

Working Hours

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.

Holidays / PTO

• Statutory Holidays

New Year’s Day – 1st January Youth Day – 11th February Labor Day – 1st May National Day – 20th May The Ascension Day – Date subject to change Good Friday – Date subject to change Christmas – 25th December End of Ramadan – Date subject to change Sheep Festival – Date subject to change

• Paid Annual Leave

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.

• Sick Leave

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.

• 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.

Termination of Employment

• 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