How to Run Payroll in Cameroon: Employment Taxes & Setup

Milani Notshe

Research Specialist

Last Updated

February 13, 2026

In This Guide

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Running payroll in Cameroon involves many moving parts before your team sees money land in their accounts. Each month you need to calculate gross-to-net correctly, apply statutory withholdings and employer contributions, issue compliant payslips, plus file and remit on schedule. If anything slips through the cracks, you could face penalties, back-pay exposure, and unnecessary friction with your people.

If you’re hiring in Cameroon, whether you’re building a local presence or expanding your global footprint, this guide is for you. We’ll walk through the choices and compliance requirements that have the biggest impact on your speed and risk, from entity vs. no-entity hiring to worker classification and the statutory bodies you’ll interact with along the way. By the end, you’ll know exactly what to expect and how to keep payroll running smoothly, wherever you’re hiring.

Key Takeaways

Payroll cycle: Employers in Cameroon generally process payroll on a monthly basis.

Tax filing: Income tax and social security contributions are typically withheld and submitted through monthly filings.

Employer taxes: Employer contributions include social security, family allowances, and other statutory charges calculated as percentages of employee salaries.

Tax year: Cameroon’s tax year follows the calendar year, from January 1 to December 31.

Payroll processing methods: Payroll is commonly managed in-house or outsourced to local providers experienced with Cameroonian tax and social security requirements.

How to Choose Your Payroll Structure in Cameroon

Expanding into Cameroon? Building a compliant payroll setup involves much more than simply paying salaries. You’ll be responsible for employment compliance, monthly tax and social declarations, and mandatory benefits. Even small delays in filings or payments can lead to real penalties.

You have several operating models to choose from to make this easier. The right one depends on your legal footprint, your appetite for risk, and how quickly you need to start hiring. Let’s break down the main options and when to use each.

1. No Local Entity in Cameroon: Use an Employer of Record (EOR)

If you don’t yet have a legal entity in Cameroon, an Employer of Record is usually the fastest and lowest-risk way to hire. An EOR becomes the legal employer on paper, provides locally compliant employment contracts, and manages payroll under local regulations, while you continue to direct the work and manage performance.

This model is ideal for:

Testing a new market
Hiring your first team members
Scaling a distributed workforce without building local infrastructure,

Why it’s the fastest and least risky option:

You skip the lengthy process (and cost) of setting up an entity.
All local registrations, monthly declarations, and statutory payments are handled by a provider already set up in-country, dramatically reducing your compliance risk.

2. You Have a Cameroon Entity: Run In-Country Payroll

If you already operate a local entity, or you’re planning to establish one, running payroll directly gives you maximum flexibility and control. You can set your own policies, design benefits, and align payroll closely with your finance and internal approval processes. But this also comes with greater operational responsibility.

What you’re responsible for:

Registering with relevant authorities and maintaining compliance with statutory bodies (often involving CSS/IPRES or similar local institutions).
Accurately calculating and remitting payroll taxes and contributions every month – plus handling year-end requirements.
Issuing compliant payslips and maintaining audit-ready payroll documentation.

When this option makes sense:

You’re hiring at scale and want payroll fully “in-house,” even if you partner with a local provider for execution.
You need deeper integration with finance systems or custom benefit structures.

If you want to keep the entity but offload the admin, many employers choose global payroll services to handle calculations, filings, and payments while they remain the legal employer.

3. Contractors Only: Use Contractor Management

Paying independent contractors is often simpler than setting up full payroll, especially for short-term or highly specialized work.

However, you need to watch out for misclassification risk. In Cameroon, as in many jurisdictions, someone may legally qualify as an employee based on how they work – not what their contract says. If they’re under your direction, working like an employee, you may be responsible for full employer obligations.

When contractor payments work well:

You need specialised expertise for a defined scope or timeframe
The contractor operates independently, not under your control or supervision

You can also use contractor management services to streamline compliant contracts, invoicing, and payments.

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What To Know About Payroll Processing In Cameroon

Payroll in Cameroon centers on four main obligations: monthly personal income tax withholding, social security and pension contributions to the Caisse Nationale de Prévoyance Sociale (CNPS), additional statutory funds such as workplace accident insurance, and periodic payroll reporting to the tax administration (Direction Générale des Impôts) and CNPS. You must track changing income thresholds, contribution ceilings, and any local surcharges, which can differ by employee earnings level and, in some cases, by sector or business size.

Non-compliance can trigger penalties, late-payment interest, audits, blocked tax clearances, and serious trust issues with employees if net pay or benefits are miscalculated. This guide walks you through how to calculate the main payroll taxes, align with filing and payment deadlines, structure your payroll calendar, and set up compliant processes whether you operate through your own entity or an Employer of Record.

Fiscal Year in Cameroon

1 January - 31 December is the 12-month accounting period that businesses in Cameroon use for financial and tax reporting purposes.

Payroll Cycle in Cameroon

The payroll cycle in Cameroon is usually monthly, with employees being paid by the last day of the month.

Minimum Wage in Cameroon

As of 2026, the national minimum wage in Cameroon is FCFA 43,969 (XAF) per month (approximately 76 USD) for state employees, FCFA 45,000 for private sector employees (agriculture) and FCFA 60,000 for private sector employees (non-agriculture). Wages are typically negotiated between employers and workers, and sectoral agreements may apply.

Bonus Payments in Cameroon

There is no legal law to provide a 13th or 14th month's salary according to statutory requirements.

Types Of Payroll Taxes In Cameroon

In Cameroon, your payroll must handle personal income tax withholding, mandatory CNPS social security and pension contributions, and employer-funded levies such as workplace accident insurance and related funds. Each obligation has its own rate structure, base, and due dates, and the tax authorities and CNPS actively enforce compliance through audits and financial penalties.

Personal Income Tax (PAYE Withholding)

Personal income tax is withheld at source by the employer on employment income using progressive monthly brackets ranging roughly from 11% to 38%, plus a local council surcharge of 10% of the income tax. You calculate the tax on the employee’s taxable salary, withhold it from pay, and remit it monthly to the Direction Générale des Impôts, and failure to do so can result in fines, late interest, and potential criminal exposure for persistent non-compliance.

Employers are fully responsible for correct calculation, timely filing of the monthly payroll tax return, and payment of the withheld amounts, and underpayments discovered in audits are typically recovered with penalties and interest. Because rates are progressive, you must ensure your payroll system correctly applies the brackets and any applicable abatements or thresholds for each employee.

CNPS Social Security And Pension Contributions

CNPS social security covers pensions, family allowances, and related benefits, and contributions are shared between employer and employee on gross salary up to a statutory ceiling. As of 2026, employers typically contribute around 11.2% for pensions and family benefits plus a variable workplace accident rate (often around 1.75% for standard risk), while employees contribute about 4.2%, and all contributions are calculated on capped earnings and remitted monthly to CNPS.

Employers must register with CNPS, obtain a CNPS number for the company and each employee, and submit monthly declarations and payments by the legal deadline. Late or incorrect CNPS filings can lead to surcharges, interest, and difficulties obtaining CNPS compliance certificates that are often required for public tenders or certain regulatory processes.

Workplace Accident Insurance And Related Employer Funds

Workplace accident and occupational disease insurance is a mandatory employer-only contribution managed through CNPS, with rates generally ranging from about 1.75% to 5% of gross salary depending on the risk classification of your activity. This contribution is paid in addition to the core pension and family allowance rates, and it is calculated on the same capped salary base, with monthly declarations and payments aligned with other CNPS contributions.

Because the rate depends on your industry risk level, you must confirm your classification with CNPS and update it if your operations change. Underreporting or misclassifying your risk can lead to backdated assessments, penalties, and higher future rates if CNPS determines that your claims experience or risk profile was understated.

How To Pay Employees In Cameroon

Employees in Cameroon are most commonly paid by bank transfer in Central African CFA franc (XAF), although cash payments are still used in some sectors and remote areas. Salaries are typically paid monthly, and employment law and common practice expect payment no later than the end of the month or the first few days of the following month, with clear internal payroll cut-off dates.

If you do not have a local entity, you generally need to use an Employer of Record or a compliant global payroll partner, because paying individuals directly from abroad without registration can breach labor, tax, and foreign exchange rules. Payslips should clearly show gross salary, taxable base, personal income tax withheld, employee CNPS contributions, other deductions, employer contributions for information, and the final net pay, and they should be provided in writing or electronically for each pay period.

Payment Method: Use bank transfers in XAF as the default method, reserving cash only for exceptional cases where banking access is limited.
Pay Frequency: Set a monthly payroll cycle with a fixed payday aligned with Cameroonian labor expectations and your internal approval process.
Currency Compliance: Ensure all employment contracts and payroll calculations are denominated in XAF to comply with CEMAC foreign exchange rules.
No-Entity Hiring: Engage an Employer of Record if you lack a Cameroonian entity but need to hire staff on local contracts and run compliant payroll.
Payslip Content: Include gross pay, taxable income, each tax and CNPS deduction, employer contributions for reference, and net pay on every payslip.
Bank Setup: Open a local corporate bank account and configure payroll batches with correct employee identifiers and payment references.
Approval Controls: Implement a clear workflow for validating hours, bonuses, and changes before finalizing the monthly payroll run.

Payroll Set Up Checklist (Entity Vs No-Entity)

Getting payroll set up correctly in Cameroon is critical because tax and CNPS registrations, contribution rates, and filing calendars are tightly linked to your legal presence. Your approach will differ significantly depending on whether you operate through your own Cameroonian entity or rely on an Employer of Record to hire and pay staff locally.

With an entity, you handle registrations, calculations, filings, and payments directly with the Direction Générale des Impôts and CNPS, while a no-entity model shifts those obligations to the Employer of Record but still requires you to supply accurate data and approve payroll. A structured checklist helps your team avoid missed registrations, incorrect rates, and late submissions that can quickly accumulate penalties.

Incorporation Status: Confirm whether you will operate via a local Cameroonian entity or through an Employer of Record for all hires.
Tax Registration: Obtain a taxpayer identification number (NUI) and register for payroll withholding with the Direction Générale des Impôts.
CNPS Registration: Register the company and employees with CNPS and confirm your contribution rates and risk classification.
Banking Setup: Open a local XAF corporate bank account dedicated to payroll and statutory payments.
Payroll Software: Implement payroll software or a provider that supports Cameroonian tax brackets, CNPS ceilings, and reporting formats.
Data Collection: Gather employee IDs, CNPS numbers, contracts, salary details, dependants where relevant, and bank information before first payroll.
Policies And Calendars: Define pay dates, cut-off dates, overtime and bonus rules, and approval workflows aligned with local law.
Document Templates: Prepare compliant employment contracts, onboarding forms, and payslip templates in French or English as appropriate.
Internal Controls: Set up segregation of duties for payroll preparation, review, and payment authorization to reduce error and fraud risk.

Example Of Salary Tax Calculation

Assume a full-time employee in Douala earns a monthly gross salary of 600,000 XAF in 2026. You would first calculate employee CNPS contributions on the portion of salary up to the CNPS ceiling, then apply the progressive personal income tax brackets to the taxable base, and finally determine the net salary after all statutory deductions.

In parallel, you calculate employer CNPS and workplace accident contributions on the same capped base, which typically add roughly 13%–15% on top of gross salary for that employee. The goal is to ensure that both employee and employer contributions are correctly computed, withheld, and reported in your monthly payroll run.

Step 1 – Determine Gross: Confirm the monthly gross salary and any taxable allowances or bonuses for the period.
Step 2 – Calculate CNPS: Apply employee and employer CNPS rates to gross salary up to the statutory ceiling to obtain contribution amounts.
Step 3 – Apply Tax Brackets: Compute personal income tax using the progressive monthly brackets and add the 10% council surcharge.
Step 4 – Derive Net Pay: Subtract employee CNPS and income tax from gross salary to arrive at net pay for the payslip.
Step 5 – Record Employer Costs: Add employer CNPS and accident insurance to gross salary to determine the total employer cost for budgeting.

Submitting Employee Tax In Cameroon

In Cameroon, you submit payroll taxes and CNPS contributions primarily through the online portals of the Direction Générale des Impôts and CNPS, supported by bank transfers referencing the relevant period and declaration number. To file, you need your company tax ID (NUI), CNPS employer number, employee identifiers, detailed payroll data for the month, and access to your corporate bank account for payment.

Tax Portal Filing: Use the DGI online system to submit monthly payroll tax returns and generate payment references.
CNPS Online Declarations: File monthly CNPS contribution statements through the CNPS e-service platform using your employer account.
Bank Transfer Payments: Pay assessed amounts via bank transfer or approved payment channels, quoting the correct reference and period.
Payroll Software Integration: Where possible, integrate your payroll system with export formats accepted by DGI and CNPS to reduce manual entry.
Third-Party Providers: Consider using a local payroll bureau or Employer of Record to handle filings and payments on your behalf while you approve the data.

Payroll Tax Due Dates In Cameroon

Tax Type	Due Dates
Monthly Personal Income Tax (PAYE) Withholding	Generally due by the 15th of the month following the month in which salaries are paid.
Monthly CNPS Social Security And Pension Contributions	Generally due by the 15th of the month following the month of payroll.
Workplace Accident Insurance Contribution	Paid together with CNPS contributions by the 15th of the following month.
Annual Payroll Summary To Tax Authorities	Typically due by 31 March following the end of the calendar year.
Annual CNPS Wage And Contribution Statement	Typically due by 31 March following the end of the calendar year.
Local Council Surcharge On Income Tax	Remitted monthly with PAYE by the 15th of the following month.

Running Payroll Processing in Cameroon

So, what does it actually take to run payroll in Cameroon? It involves calculating monthly salaries, applying the right statutory deductions, and making sure your team gets paid accurately and on time, while staying fully compliant with local tax and labour laws.

Let’s walk through what that looks like in practice:

Monthly Payroll Workflow

Gather all the essentials: hours worked, leave taken, new joiners, leavers, and any salary or benefit changes.
Double-check timesheets, leave balances, overtime, and any variable pay to make sure everything is accurate.
Work out gross earnings, including base salary, bonuses, commissions, and allowances.
Apply mandatory and voluntary deductions, like income tax, pension contributions, benefits, and any company-specific deductions. Then, calculate net pay after all deductions.
Run internal reviews, compare with previous payroll cycles, and get the necessary approvals.
Pay employees via bank transfer and share payslips through email or your payroll system.
Send statutory payments and required reports to tax authorities.
Update your records and ensure payroll entries flow correctly into your accounting system.
Share payroll summaries with finance and address any open questions or discrepancies.

How Playroll Streamlines Processing

Keeping track of all these steps, especially in a new market, is no easy task. Regulations change, requirements shift, and it’s easy for things to fall through the cracks. Playroll makes this effortless by managing the entire payroll process for you: onboarding employees, handling calculations and deductions, issuing payslips, transferring funds in Central African CFA franc, and taking care of statutory filings and compliance.

Income Tax And Social Security In Cameroon

Understanding the tax obligations for both employers and employees is crucial when operating in Cameroon's business landscape. This section explains how taxes and statutory fees affect payroll and individual earnings in Cameroon.

Employer Tax Contributions

Employer payroll contributions are generally estimated at an additional 13%–18% on top of the employee salary in Cameroon. This range reflects CNPS pension and family allowance contributions, workplace accident insurance based on risk classification, and any other minor statutory employer-only levies that may apply.

Tax Type	Tax Rate
CNPS Pension And Old-Age Insurance (Employer)	8.4% of gross salary up to the CNPS ceiling
CNPS Family Allowances (Employer)	2.8% of gross salary up to the CNPS ceiling
Workplace Accident And Occupational Disease Insurance (Employer)	Approximately 1.75%–5% of gross salary depending on risk category
Unemployment Or Training Related Employer Funds (Where Applicable)	Typically around 1% of gross salary in sectors where mandated
Employer Health Or Complementary Schemes (If Mandatory By CBA)	Variable, often 1%–3% of gross salary depending on the collective agreement

Employee Payroll Tax Contributions

In Cameroon, the typical estimation for employee payroll contributions cost is around 4%–6%.

Tax Type	Tax Rate
CNPS Pension Contribution (Employee)	4.2% of gross salary up to the CNPS ceiling
Employee Health Insurance Or Mutual Scheme (If Applicable)	Commonly 1%–2% of gross salary depending on plan
Voluntary Pension Top-Up (If Offered)	Variable percentage elected by the employee
Union Dues (Where Employee Is A Member)	Typically 1%–2% of gross salary as per union rules
Other Statutory Employee Levies (Sector-Specific)	Low, usually below 1% of gross salary where applicable

Individual Income Tax Contributions

Individual income tax in Cameroon is calculated on a progressive scale, with higher earnings taxed at higher marginal rates. Employers withhold this tax at source each month and remit it to the tax authorities together with the local council surcharge.

Income Bracket	Tax Rate
0 – 200,000 XAF per month	11%
200,001 – 300,000 XAF per month	16%
300,001 – 500,000 XAF per month	25%
500,001 – 1,000,000 XAF per month	35%
Above 1,000,000 XAF per month	38%
Local Council Surcharge On Calculated Income Tax	10% of the income tax amount

Pension in Cameroon

Pension in Cameroon is primarily delivered through the mandatory CNPS system, where both employers and employees contribute on capped earnings to fund old-age, disability, and survivors benefits. Employees become eligible for retirement pensions based on age and contribution history, and accurate, timely CNPS reporting is essential to protect their future entitlements.

Managing Common Payroll Challenges in Cameroon

Global employers operating in Cameroon often encounter unique payroll challenges that can affect compliance and efficiency, like navigating evolving tax laws and managing employee data. With a need for real-time accuracy, modern organizations must develop strategies to overcome these challenges effectively. Below, we explore some of the most common payroll hurdles and provide actionable solutions to streamline payroll processes in Cameroon.

Maintaining Accurate And Detailed Payroll Reports

Maintaining accurate global payroll reports is often challenging due to currency exchange complexities, data integration issues, and the need to keep employee information up-to-date –including tax information, hours worked, leave balances, and any changes in salary or job status. Generating accurate reports is easy with a comprehensive payroll automation tool that consolidates fragmented data sources, and can keep track of employee payments and deductions.

Keeping up with ever-changing tax laws & Compliance Laws

In Cameroon, tax laws and compliance regulations can change frequently, presenting a significant challenge for global employers. Monitoring updates to federal, state, and local tax codes is crucial to avoid non-compliance and costly penalties, but requires significant time and resources. Partnering with local experts or a reputable global HR platform is an effective way to maintain compliance. These services can help employers stay compliant with evolving regulations while freeing up time for more strategic work.

Consolidating Multi-Vendor Payroll Analytics

Managing payroll across multiple vendors often leads to fragmented data and inefficiencies, making it difficult to consolidate analytics. These challenges can hinder decision-making, especially when trying to gain a clear view of workforce costs and trends. To address this, organizations can invest in a centralized payroll management system that unifies data from multiple vendors. A consolidated platform simplifies payroll tracking, ensures data accuracy, and provides actionable insights into payroll expenditures.

Integrating Multiple HR & Payroll Systems

Global companies are prone to using multiple HR or payroll systems across regions, which can easily lead to fragmented payroll data, increasing the risk of delays and errors in employee compensation. To combat this, seamless integration between payroll and other systems is critical.

Payroll management systems that connect with existing HR and financial platforms can help streamline workflows by reducing manual inputs and ensuring that all departments operate with up-to-date, accurate information. In turn, this helps guarantee on-time, accurate payroll, boosting employee satisfaction.

How Playroll Can Streamline Payroll & Taxes In Cameroon

Expanding globally is an exciting milestone for any company, but it comes coupled with complex payroll challenges. It doesn’t have to be complicated. At Playroll, our easy-to-implement global payroll management software combines automation with hands-on support to make global payroll truly simple. Here's how Playroll helps:

Multi-Vendor Integration: Our platform syncs seamlessly with your providers and in-house systems to unify global payroll services in one platform.
Standardize Payroll Processes: Unify your operations in one dashboard to ensure payroll is running smoothly globally, with advanced approval flows and reports.
Improve Governance & Compliance: Improve compliance by centralizing all your compliance tasks and processes. Easily track your payment obligations, with digitized audit trails.
Advanced Reporting: Access and configure your data, your way, with a comprehensive suite of payroll analytics and reporting tools.

Disclaimer

THIS CONTENT IS FOR INFORMATIONAL PURPOSES ONLY AND DOES NOT CONSTITUTE LEGAL OR TAX ADVICE. You should always consult with and rely on your own legal and/or tax advisor(s). Playroll does not provide legal or tax advice. The information is general and not tailored to a specific company or workforce and does not reflect Playroll’s product delivery in any given jurisdiction. Playroll makes no representations or warranties concerning the accuracy, completeness, or timeliness of this information and shall have no liability arising out of or in connection with it, including any loss caused by use of, or reliance on, the information.

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