The Short Answer
In Cameroon, the employer pays CNPS social security contributions of 12.95% to 16.2% of gross salary, depending on the workplace-accident risk rate. These apply only to salary up to FCFA 750,000 per month. On top of that, employers pay smaller payroll levies, and budget for allowances, statutory leave and end-of-contract costs. Personal income tax (IRPP) is withheld from the employee's salary and is not an extra employer cost.
CNPS Employer Contributions
CNPS (Caisse Nationale de Prévoyance Sociale) has three branches. All three are calculated on gross salary up to the monthly ceiling of FCFA 750,000.
| Branch | Employer | Employee |
|---|---|---|
| Family allowances | 7% | 0% |
| Old-age pension | 4.2% | 2.8% |
| Workplace accidents and occupational diseases | 1.75% to 5% | 0% |
| Total | 12.95% to 16.2% | 2.8% |
The workplace-accident rate depends on the risk category of the work: an office role sits at the low end, construction or industrial work at the high end. For more detail, see our CNPS guide for employers.
Other Payroll Levies
Employers also pay smaller payroll-based contributions, including the Crédit Foncier du Cameroun (CFC) housing contribution and the National Employment Fund (FNE) contribution. These are declared alongside monthly payroll; your payroll provider will include them in the cost estimate.
Income Tax Is Withheld, Not Added
IRPP is a progressive tax on the employee's annual taxable income, with rates from 10% to 35%. The employer withholds it every month and pays it to the tax authority by the 15th of the following month, together with the communal additional tax (CAC) of 10% of the IRPP amount. Both are deducted from the employee's gross salary. If you promise a net salary instead of a gross salary, you carry the tax cost yourself, so agree salaries in gross terms. Our Cameroon tax guide for employers explains the brackets.
Worked Example
An office-based employee on a gross salary of FCFA 500,000 per month, with the lowest workplace-accident rate:
| Item | Monthly amount (FCFA) |
|---|---|
| Gross salary | 500,000 |
| Family allowances (7%) | 35,000 |
| Old-age pension, employer share (4.2%) | 21,000 |
| Workplace accidents (1.75%) | 8,750 |
| Employer CNPS total | 64,750 |
| Salary plus employer CNPS | 564,750 |
Add the other payroll levies and any allowances you choose to pay. The employee's own pension contribution (2.8%, or FCFA 14,000) and IRPP are deducted from the FCFA 500,000.
Because of the ceiling, CNPS weighs less on senior salaries. For a gross salary of FCFA 1,500,000, employer CNPS is still calculated on FCFA 750,000, giving FCFA 97,125 – about 6.5% of salary.
Costs Beyond Payroll Contributions
Allowances – Transport and housing allowances are common expectations, especially in Douala.
Overtime – Paid at 120% to 140% of the normal rate beyond the 40-hour standard week.
Annual leave – 1.5 working days per month of service, paid.
Notice and severance – Severance applies after 2 years of service and is calculated on years of service and average salary; see how to handle employee termination legally.
Minimum wage – No employee may be paid below the SMIG, and most collective agreements set higher sector minimums; see the Cameroon minimum wage guide.
Expatriates – Work permits, residence permits, relocation and housing add significant cost.
Frequently Asked Questions
Is there a 13th-month salary in Cameroon?
It is not a general legal requirement, but some collective agreements and employment contracts provide for one. Check the agreement that applies to your sector before you set salaries.
What does an Employer of Record add to these costs?
An EOR charges a service fee on top of salary and statutory contributions. In return you avoid the cost of setting up and running a local entity. See EOR vs subsidiary in Cameroon.
In which currency are costs paid?
Salaries and contributions are paid in Central African CFA francs (FCFA/XAF), which has a fixed exchange rate with the euro.
Want an exact employer cost for your first hires? CDS HR prepares cost estimates for international companies hiring through our Employer of Record service. Book a free 30-minute consultation and get your estimate within 24 hours.