CPF Transition Offset (CTO)
· Last verified 23 Oct 2026Automatic offset of half of each year's increase in employer CPF contribution rates for senior workers. Extended to 2027 at Budget 2026.
- Support
- 50% of the employer CPF rate increase: 0.25 percentage point of wages (up to the CPF salary ceiling) for employees aged above 55 to 65, for both 2026 and 2027.
- Maximum funding
- No fixed cap published
- How to apply
- No separate application needed
- Apply before starting?
- No
Recent changes
Budget 2026 extended CTO to Dec 2027, covering 50% of the employer CPF increase in 2027. Senior worker CPF rates continue to rise from 1 Jan 2027 (employer share +0.5 pt for above 55 to 65, per IRAS).
Who is eligible
- Registered and operating in Singapore
- Employee is a Singapore Citizen or PR aged above 55 to 70 (offset applies only to bands with a rate increase: above 55 to 65 in 2026 and 2027)
- Employer made timely CPF contributions
- Business owners and employers trading in personal capacity are not eligible
Quick eligibility check
- 1. Do you employ Singapore Citizens or PRs aged above 55 to 65?
- 2. Do you pay CPF for them at the current senior worker rates?
- 3. Do you pay CPF contributions on time?
- 4. Is your business an entity rather than a sole trader trading in a personal capacity?
0 of 4 answered.
What it covers
- Increase in employer CPF contributions for senior workers
How to apply
- Pay CPF for senior employees at the new rates on time
- IRAS computes and pays the offset automatically
Processing time: Paid together with SEC/EEC payouts (September and March)
Claims: Automatic payout through GIRO or PayNow Corporate.
Documents you need
- None. CTO is automatic; employers do not need to apply
- Timely CPF contribution records
- GIRO or PayNow Corporate registration
Frequently asked questions
What is the CPF Transition Offset?
Automatic offset of half of each year's increase in employer CPF contribution rates for senior workers. Extended to 2027 at Budget 2026.
How much funding does CTO give?
50% of the employer CPF rate increase: 0.25 percentage point of wages (up to the CPF salary ceiling) for employees aged above 55 to 65, for both 2026 and 2027.
Who is eligible for CTO?
Applicants must be registered and operating in Singapore. Employee is a Singapore Citizen or PR aged above 55 to 70 (offset applies only to bands with a rate increase: above 55 to 65 in 2026 and 2027) Employer made timely CPF contributions Business owners and employers trading in personal capacity are not eligible
Do I need to apply for CTO?
No separate application is needed. Automatic payout through GIRO or PayNow Corporate.
What documents do I need for CTO?
None. CTO is automatic; employers do not need to apply; Timely CPF contribution records; GIRO or PayNow Corporate registration.
Sources
- Official page: https://www.iras.gov.sg/schemes/disbursement-schemes/senior-employment-credit-(sec)-cpf-transition-offset-(cto)-and-enabling-employment-credit-(eec)
- https://www.mom.gov.sg/newsroom/press-releases/2026/0303-partnering-businesses-and-workers-to-thrive-in-a-changed-world
Information last verified on 23 Oct 2026. Grant rules change often. Always confirm with Inland Revenue Authority of Singapore (IRAS) before you apply.
