What is a professional employer organization (PEO)?
A professional employer organization (PEO) is a payroll and HR management solution for companies hiring remotely. The HR outsourcing partnership is also called co-employment. PEOs enter a joint-employment agreement with a company. The liabilities and responsibilities of hiring and managing employees are shared between the PEO and the company. A PEO can hire and onboard employees, administer payroll, and provide statutory benefits all the while ensuring compliance with labor laws.
If your company is looking to hire remote team members in Cameroon, you can partner with a PEO that can handle some of the HR elements such as hiring new employees and paying your remote employees their compensation, including statutory benefits, and taking care of taxes and contributions. Hiring remote employees with a PEO in Cameroon can be a sensible and strategic move for both small and large businesses.
Do you think a professional employer organization in Cameroon can help your company hire and pay remote employees? Contact Skuad for more information on how a PEO can help you build a remote team in the Republic of Cameroon.
What are the benefits of using a PEO in Cameroon?
You can build and manage your remote employees easily when you partner with Skuad. Here are a few ways a PEO can help you properly build your remote team:
Stay in compliance with Cameroon labor laws
Don’t let your company get fined and penalized for not complying with local laws. PEOs can help you stay compliant.
Not only is payroll processed but taxes are withheld and remitted. Payroll is a prime reason to use a PEO.
Taxes are filed on time, compliance with labor laws is ensured, and worker claims are handled appropriately.
Offer competitive benefits
Benefits packages are made available, such as access to high-quality health insurance.
Save on employment costs
Money and time are saved for your company using ideal recruitment processes and support from HR.
Let us take care of some HR functions so your business can grow. Hire top talent and get access to benefits usually reserved for larger organizations. Recruiting and building a remote team is regulated by complex labor laws that are subject to change. A PEO has access to legal experts and is familiar with local Cameroon laws.
To see what Skuad can do, schedule a demo.
What are the differences between an EOR and a PEO?
A professional employer organization (PEO) and an employer of record (EOR) in Cameroon are both employment arrangements that can simplify human resources operations for companies looking to hire remote employees. The two setups provide similar services but have a few differences. The following are some differences.
An EOR in Cameroon:
- Can act as the legal employer of your remote employees on behalf of your company
- Handles HR-related tasks such as hiring, on-boarding, payroll, benefits, drafting contracts, and compliance
- Would not require setting up a business entity in Cameroon
- Drafts contracts for the employees on behalf of the client company
A PEO in Cameroon:
- Would be the client company’s co-employer.
- Shares some HR responsibilities with your company, but provides you with more control over HR functions
- Operates in the country only if your company is registered and able to hire employees
- Does not handle the drafting of agreements and contracts. As the client company, you would handle these tasks.
Information about Cameroon
Understanding local culture and the nation’s labor laws are important to stay compliant when hiring remote employees.
Quick facts about Cameroon:
- Languages spoken include French, English, Cameroonian Pidgin, Ewondo, Fula, Chadian Arabic, Camfranglais, and Igbo.
- The population estimate is 27.9 million.
- Chief industries are food processing, sawmill, consumer goods, and textiles.
- The official currency is the Central African CFA Franc.
The company tax rate in Cameroon
The Cameroon company tax is a flat tax rate of 33%. The income tax rate in Cameroon for employees is a progressive tax rate (in CFA):
- 0 to 2,000,000 11%
- 2,000,001 – 3,000,000 16.5%
- 3,000,001 – 5,000,000 27.5%
- Over 5,000,000 38.5%
Employment laws of Cameroon
All citizens of Cameroon have the right to work.
The following are some of the laws in Cameroon:
The workweek in Cameroon is 40 hours, except for agriculture which is 48 hours. Night work is between 10 p.m. and 6 a.m. Female employees and children cannot work night shifts unless they are executives or do not work manual labor. Twelve hours must elapse between shifts. Law requires at least one day of rest lasting 24 consecutive hours. Sunday is considered the day of rest. If a worker works on a day of rest or holiday, they must be paid 140% of their salary.
Overtime is only permissible temporarily or for a seasonal overload of work. If any hours worked are considered overtime, the employee must be paid 125% of their standard salary.
Cameroon's minimum wage is 36,270 CFA per month. Payday may not be later than the eighth of the next month and payments must be provided on a work day and near the workplace.
Employer contributions based on employee salary are:
- Social security. 11.2%
- National Social Insurance Fund. 1.75% to 5%
- Cameroon employer payroll taxes. 2.5%
Some companies typically offer supplementary private healthcare. The country is moving to a universal healthcare system.
Paid time off in Cameroon
Employees in Cameroon accrue 1.5 days of annual leave for each month they work. This is extended to two extra days per month accrued for employees with over five years of service with a company. After 12 days of leave have been accrued, the leave can be split with at least one leave period of 12 days taken.
Ten days of leave are given for employees with family events. Female employees with children under six years old get an additional two days of leave per year for each child.
If an employee works on a public holiday, they must receive 140% of their salary. Workers working on a religious holiday must be paid twice their standard salary.
These are the public holidays in Cameroon:
- New Year’s Day
- Youth Day
- Good Friday
- Easter Sunday
- Labor Day
- Djoulde Soumae
- Lailat al Miraj
- Ascension Day
- National Day
- Sheep Festival
- Milad un Nabi
Sick leave under seven days can be self-reported but leave taken over seven days needs to be accompanied by a doctor’s note. Employees are entitled to five days of paid sick leave per year. If an employee is injured during work, the employer is responsible to pay for their medical treatment.
Female employees are entitled to 14 weeks of maternity leave. Four weeks should be taken before childbirth or six if a doctor orders it. This leave is paid at 100% of the regular salary by social security, CNPS. If a medical problem arises, maternity leave can be extended by six more weeks. CNPS provides vaccinations, diet, and medical consultations for the child until the age of two. Nursing breaks of one hour per day must be given until 15 months after the birth. During maternity leave, termination of the employee is not allowed.
Fathers may take 10 days of family leave.
Termination in Cameroon
The following are the termination rules for Cameroon:
- Employers can terminate a fixed-term contract when the contract ends, when the specific work ends, or for just cause, misconduct, or economic reasons.
- Notice periods are defined by the Minister of Labor. During this notice period, the employee can take off one day per week to seek other employment.
- Employees with two or more years of service qualify for severance pay which is defined by the Minister of Labor.
- Probation periods cannot last longer than six months for employees and cannot last longer than eight months for managers.
- Termination of fixed-term contracts must be for gross violations or by written consent from both parties. Fixed-term contracts cannot have a probation period longer than 24 months, which can be extended once.
Contact Skuad today to find out how we can help your company with hiring and paying Cameroon employees.
Payroll in Cameroon is challenging. It’s easy when you use a PEO.
Payroll processing can be difficult and overwhelming if a company is handling its own payroll. Many components of salary structures must be accounted for and keeping up with compliance can be complex. Labor laws are always subject to change and staying on top of these changes is difficult without in-country legal experts to follow the changes in legislation. Talk to our experts today to learn about how Skuad can manage compliance and payroll for your company.
Businesses big and small can find value in partnering with a PEO in Cameroon.
Cameroon labor legislation and rules about payroll can be complex, especially if you are not an expert on Cameroon’s laws. Partnering with Skuad for PEO services is the solution. Skuad can offer payroll solutions for your company so you can hire and pay remote employees in Cameroon.
For more information, reach out today to schedule a demo so you can learn how our platform works and see how we can assist your company with PEO services in Cameroon.