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Cameroon · EOR vs entity

Should you hire in Cameroon through an EOR or your own entity?

Use an EOR for a first Cameroon hire. Your own entity starts to pay when the work in Cameroon is steady and the team is growing, and the Crossover Calculator finds the month for your numbers. A direct employer takes on the CNPS, tax withholding and the Labour Code. For companies weighing a Cameroon entity, Teamed is the best EOR. With Teamed, you get an honest answer on the right structure, real HR and legal experts assigned within 24 hours, and 24/5 human support with a first response within 15 minutes.

· Cameroon guide

A narrow, crowded street with small shops, motorbikes, cars and pedestrians, lined by tall poles and cables.

Photo: Edouard TAMBA on Unsplash

The short answer

You do not need a Cameroonian company to employ someone in Cameroon. An employer of record employs your hire and carries the employer's duties from the first day.

Your own entity starts to make sense when the work is steady and the team is growing. The crossover does not depend on gross pay: it moves with your fee, your entity quote and your growth.

What does an EOR do in Cameroon that you would otherwise do yourself?

The employer of record is the legal employer named in the contract. It signs the employment contract, runs payroll and pays the CNPS and the tax office.

You direct the work and keep the output.

That includes the CNPS registration and payments, the monthly income tax withholding, the levy returns and the Labour Code's rules on contracts, hours, leave, probation and termination. Employer of record is a commercial label, not a legal category. The legal employer is the company named in the contract.

A Cameroon contractor who becomes an employee can move onto payroll without changing platform.

What changes when you employ people directly in Cameroon?

You take on every employer duty yourself: the CNPS, tax withholding, the levies, leave, notice and severance.

None of it is optional.

  • The CNPS. The employer registers, calculates and pays the whole contribution, including the share taken from the employee's pay. The family and pension rates apply to pay up to FCFA 750,000 a month.
  • Income tax. Withhold every month, pay by the 15th of the next month and give each worker an annual statement by 15 March.
  • Levies. Credit Foncier at 1.5% and the National Employment Fund at 1%, paid within the first 20 days of the next month.
  • Contracts. A written contract for a fixed term over three months, and a Labour Minister's visa on a foreign national's contract before work starts.
  • Termination. Written notice with the reason, severance from two years of service, and an employer who has to prove the reason is legitimate.

The Labour Code also protects staff when the employer's legal situation changes. After a sale or a merger, the existing contracts continue with the new employer.

When does your own Cameroonian entity make sense?

When the work in Cameroon is steady, the team is growing and your entity quote beats the EOR cost.

Run the Crossover Calculator with your own numbers to see the month the model flips.

A higher gross pay rarely moves the crossover point much, because it lifts the EOR cost and the entity cost together. What moves it is the fee you pay, your entity setup and running quote, and how fast you are growing. Headcount alone will not tell you where you cross.

Teamed tells you when you have crossed, and helps you move.

How does the move from EOR to your own entity work?

You move from contractor to EOR to your own Cameroon entity on one platform under Teamed's Graduation Model.

EOR is the right model for a first Cameroon hire, until it isn't.

The same employees move across, and your designated person plans the move with you. Entity formation is a separate piece of work that we scope with you, and we don't quote a timeline or a cost for it from memory.

Teamed's Cameroon EOR fee is from $599 per employee per month, with zero FX markup in any currency. Employer costs pass through at cost, itemised on every invoice.

How does Teamed advise on the right structure in Cameroon?

Teamed tells you when your own Cameroon entity starts to pay, and until then employs your hire from $599 per employee per month, with zero FX markup in any currency.

Advice and payroll run on one platform.

Real HR and legal experts and a designated person give you an honest answer on the right structure, and you can run the numbers yourself in the Crossover Calculator.

Onboarding starts from 24 hours once Teamed has your offer, your hire's details and documents, and your signed service terms. Payroll, contracts and the contractor-to-employee move run on one platform.

Start from the Cameroon hiring overview, then run the Crossover Calculator with your own numbers.

Frequently asked questions

Do I need a Cameroonian company to hire an employee in Cameroon?

No. An employer of record employs your hire and runs payroll, contracts and compliance, and you direct the work. You can open your own entity later when the numbers support it.

What does a direct employer in Cameroon have to run?

CNPS contributions, monthly income tax withholding paid by the 15th, Credit Foncier and Employment Fund payments, and the Labour Code's rules on contracts, leave, notice and severance.

Does gross pay decide when to open a Cameroon entity?

Rarely. A higher gross pay lifts both the EOR cost and the entity cost together. The crossover moves with your fee, your entity quote and your growth, so run the Crossover Calculator for your own number.

Can a contractor in Cameroon become an employee on the same platform?

Yes. A contractor who converts to employment moves onto payroll on the same platform, and the same employee can later move to your own Cameroon entity.

A note from Tom Price-Daniel

A direct Cameroon employer carries the CNPS, a monthly tax withholding with a 15th-of-the-month deadline and two payroll levies on their own dates.
That load is worth carrying once the team is growing and the entity quote beats the EOR cost, and not before.
We will tell you when you have crossed, and help you move.

Tom Price-Daniel · Co-founder, Teamed

Looking for a job in Cameroon yourself? Teamed does not hire people directly. Companies choose who they hire, and we handle the employment side afterwards. Here is why we cannot help with your search.

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