Central Provident Fund (CPF) is social security saving scheme funded by contributions from employers and employees.

When company hire employee, company need to make CPF contribution, the purpose is to help employee meet their retirement, housing and healthcare needs.

CPF contributions are payable for Singapore citizens (SCs) and Singapore permanent residents (SPRs) who are:
 - Working in Singapore under a contract of service.
 - Employed under a permanent, part-time or casual basis.

However, if the employee is an SC or SPR working overseas, CPF contributions are not mandatory.

The contribution go into 3 accounts :
  1. Ordinary Account : Primarily for retirement and housing needs
  2. Special Account  : Primarily for retirement needs
  3. Medisave Account : Primarily for healthcare needs

Other than CPF contribution, there is SDL (Skills Development Levy)
Skills Development Levy (SDL) is a compulsory levy that you have to pay for all your employees working in Singapore, on top of CPF contribution.

For CPF contribution rate, 

Table 1. Contribution rates from 1 January 2016 for private sector and public sector non-pensionable employees being:
  - Singapore Citizen
  - SPR from the third year of obtaining SPR status
  - SPR during the first two years of obtaining SPR status but who has jointly applied
    with employer to contribute at full employer-full employee rates

Table 2. Contribution rates from 1 January 2016 for public sector pensionable employees being:
 - Singapore Citizen
 - SPR from the third year of obtaining SPR status
 - SPR during the first two years of obtaining SPR status but who has jointly applied
   with employer to contribute at full employer-full employee rates

For the complete rate on each group please read here

Source :
http://www.mom.gov.sg/employment-practices/central-provident-fund
https://www.cpf.gov.sg/

Did this answer your question?