CPF Transition Offset (CTO)

What does it support?

CTO supports incremental employer CPF contributions resulting from annual rate increases for qualifying senior Singapore Citizen and Permanent Resident workers.

Who can apply?

Eligible Singapore-registered employers making CPF contributions for qualifying workers can benefit, subject to IRAS's exclusion list and the applicable annual age bands. The framework covers senior workers aged above 55 to 70; the 2027 employer-rate increase applies to those above 55 to 65. There is no local ownership requirement for the employer.

How does the support work?

Government offsets 50% of each year's qualifying increase in the employer CPF contribution rate, using wages up to the applicable CPF salary ceiling. This is not 50% of the employer's total CPF bill. The amount is formula-based, with no fixed company-level cap.

What expenditure can qualify?

The relevant base is the additional employer CPF contribution cost attributable to the qualifying annual rate increase. Training fees, recruitment costs and other project expenditure do not form the basis of this offset.

Key conditions

The employer and employee must meet the applicable eligibility rules. The relevant year matters because contribution-rate changes and eligible age bands can differ; the calculation should use the band's qualifying increase rather than a single assumed rate across all senior employees.

Timing and application process

CTO has been extended through 2027. Employers do not need to apply. IRAS calculates support from CPF records, so the assessment follows the qualifying annual contribution-rate change.

Important programme distinctions

CTO addresses the additional CPF cost created by a rate increase. Other employment credits use different eligibility conditions and wage calculations, so they should be assessed separately when preparing a workforce-cost forecast.

Related funding routes

• Senior Employment Credit — for the separate senior-worker wage offset.
• Part-time Re-employment Grant — for implementing senior-worker employment practices.
• Progressive Wage Credit Scheme — for qualifying wage increases.