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Inland Revenue Authority of Singapore

CPF Transition Offset

Gives employers a transitionary wage offset equal to half of each year's increase in employer CPF contribution rates for senior workers aged above 55 to 70.

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Facts last checked on , confirm on the agency site before applying.

Recorded status: Accepting applications now

Who qualifies

  • All employers that employ local employees (Singapore Citizens and Permanent Residents) aged above 55 to 70 and have made timely CPF contributions for the employee qualify for the payout.
  • Wages paid to business owners (sole proprietors, partners, and shareholders who are also directors) or to employers trading in their own personal capacity are not eligible, even if CPF was contributed.
  • Local government agencies, International Organisations and businesses not registered in Singapore do not qualify.

What it funds

  • Recruiting, salary support, job redesign, career conversion

Costs covered: External payment tied to a hire's salary (offsets).

The offset equals 50% of each year's increase in employer CPF contribution rates for every Singaporean and Permanent Resident worker aged above 55 to 70, based on wages paid up to the CPF salary ceiling. For 2026 and 2027 that is a 0.25 percentage-point offset for the >55 to 60 and >60 to 65 age bands; the >65 to 70 band has no increase and no CTO.

Payment: Paid as a percentage of salary over time.

How to apply

Employers do not need to apply. IRAS notifies eligible employers and automatically credits the payout through GIRO or PayNow Corporate.

The official page and user guide name an eligibility checker and payout-breakdown request; they do not name any upload document for the payout.

  1. Check the payout eligibility using the SEC/EEC/CTO Payout Eligibility Checker & Breakdown Request digital service.
  2. Ensure a GIRO arrangement or PayNow Corporate account is available for the payout.
  3. View the IRAS notification in the post or myTax Portal and wait for automatic disbursement.

Before applying

  • The employer must be eligible for the payout.
  • The employer must have GIRO or PayNow Corporate set up to receive the payout.

Processing time: Payouts for wages paid from January to June are received in September; payouts for wages paid from July to December are received in March the following year.

Claiming support

No post-award claim is required; IRAS automatically disburses the payout. An employer who believes it should have qualified may complete the CTO appeal form and email it to CTO_Appeal@iras.gov.sg.

Employers have up to 2 months from the month of payout to lodge an appeal (e.g. a March payout must be appealed by 31 May).

Contact: https://go.gov.sg/askpayout

Application window: The CTO will be available until 2027 (extension announced at Budget 2026). The page announces a September 2026 payout but there is no application window.

Sources & last checked

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