Cameroon - Reform of the social security system

PwC Tax & Legal Cameroon informs you that the social security system has undergone a recent reform in Cameroon. Indeed, on the 15th February 2016, the President of the Republic signed Decree no. 2016/072 laying down the social contribution rates and maximum remuneration applicable in the branches of family allowances, old-age-pension, invalidity  and death, industrial accidents and occupational diseases managed by the National Social Insurance Fund.

As a reminder, social contribution rates and maximum remuneration were previously governed by Decrees no. 90/1198 of 03 August 1990 and no. 78/283 of 10 July 1978.

A-  The content of Decree no. 2016/072 of 15 February 2016 1- Family allowances branch

1- Family allowances branch

a)    Maintenance of the social contribution rates

Decree no. 2016/072 of 15th February 2016 has not modified the social contribution rates due for family allowances branch as previously fixed by Decree no. 90/1198 of 03rd August 1990.

The applicable rates are therefore maintained:

• For workers in the general regime which comprises of domestics and household servants: 7% of taxable salary;
• For workers in the agricultural regime: 5.65% of taxable salary;
• For workers in private education: 3.7% of taxable salary.

b)    Raising the ceiling of social contributions

Decree no. 2016/072 of 15th February 2016 has raised upwards the maximum taxable salary. It goes from 300 000 F.CFA per month (i.e. 3 600 000 F.CFA per year) to 750 000 F.CFA per month (i.e. 9 000 000 F.CFA per year)

2-  Old age pension, invalidity and death branch

a)    Revaluation of social contribution rates for employee share

The social contribution rates due to the National Social Insurance Fund under the old-age pension, invalidity and death was re-evaluated for the employee share

It moves from 2.8% to 4.2% of the taxable salary. The employer’s share remains at 4.2% of the taxable salary.

b)    Revaluation of social contribution rates for voluntary insurance

The social contribution rate has moved from 7% as stated in Decree no. 2014/2377/PM of 13th August 2014 fixing the conditions and modalities for voluntary insurance in the old age pension, invalidity and death branch, to 8.4%.

c)     Revaluation of the social contribution base

Just as in the family allowances branch, the maximum taxable salary for old pension, invalidity and death branch has passed from 300,000 F.CFA per month (i.e. 3 600 000  F.CFA per year) to 750 000 F.CFA per month (i.e. 9 000 000 F.CFA per year).

Regarding voluntary insurance, the taxable base is agreed by the parties within the limits of the new maximum remuneration (750 000 F.CFA per month or 9 000 000 F.CFA per year).

3-    Industrial accident and occupational diseases branch

a)    Maintenance of social contribution rates

Decree no. 2016/072 of 15th February 2016 maintains the social contribution rates in this branch as follows:

• 1.75% of taxable salary for companies in group A;
• 2.5% of taxable salary for companies in group B;
• 5% of taxable salary for companies in group C.

b)    Maintenance of the social contribution base

The applicable rates for industrial accidents and occupational diseases branch remain on all remunerations paid by the employer after deduction of professional expenses.

c)     Modification of the classification criteria of a company in a group of risk

With decree no. 78-283 of 10th July 1978 fixing the assessment rates for industrial accidents and occupational diseases branch, when a company operates under the same legal name different activities with distinct risks, their classification in one of the risk groups was based on the activity which had the bulk of employees.

However, with decree no. 2016/072 of 15th February 2016, the classification in one of the groups of risk is by the activity which has the highest risk.

B-  Immediate application of Decree no. 2016/072 du 15 February 2016

Decree no. 2016/072 of 15th February 2016 expressly repeals all earlier contrary provisions, including decree no. 90/1198 of 3rd August 1990 regulating social contribution rates and basis in the past.

The General Manager of the National Social Insurance Fund stated in an interview accorded to the Cameroon Tribune newspaper (no. 11035/7234-41st year, Wednesday 17th February 2016, p.17), that Decree no. 2016/072 of 15th February 2016 enters immediately into force. Hence, social contributions due on salaries for the month of February 2016 must be calculated on the basis of the provisions of Decree no. 2016/072 of 15th February 2016 and paid latest on the 15th  March 2016.

NB: Note that a publication of PwC will be made available in the next few days with an in-depth analysis of Decree no. 2016/072 of 15th  February 2016.

C-  Our assistance

PwC Tax & Legal helps its clients to better understand the reform of the social security  system in Cameroon and the various difficulties inherent in the new regulation. Our assistance includes for each of our clients the determination of social contributions and the follow-up of their payment to the National Social Insurance Fund.

PwC Tax & Legal Cameroon is at your disposal to answer your concerns regarding Decree 2016/072 fixing the social contribution rates and maximum remuneration applicable in the branches of family allowances, old age pension, invalidity and death, industrial accidents and occupational diseases managed by the National Social Insurance Fund.

For any clarification or additional information, please kindly contact:

Nadine Tinen Tchangoum
Tax and Legal Leader PwC France et Maghreb
Associée en charge PwC Cameroun
Email
Tel: +237 2 33 43 24 43 /44 /45
Fax: +237 2 33 42 86 09

Lionel Fom Diesse 
Email
Tel : +237  33 43 24 43/ 44/45
Fax : +237 33 42 86 09
Mobile : + 237 6 50 60 94 42/ 6 97 08 50 49