Canada Pension Boost Coming in June 2025: If you’re a Canadian retiree or planning to retire soon, there’s good news on the horizon. Starting in June 2025, enhancements to the Canada Pension Plan (CPP) and Old Age Security (OAS) programs will increase monthly payments for eligible individuals. These changes aim to provide better financial support for seniors across the country.
Canada Pension Boost Coming in June 2025
The enhancements to the Canada Pension Plan and the upcoming increase in Old Age Security payments reflect the government’s commitment to supporting seniors. By understanding these changes and how they affect your benefits, you can better plan for a secure and comfortable retirement.
| Benefit Program | Current Monthly Payment (as of June 2025) | Upcoming Increase | New Monthly Payment (Effective July 2025) | Payment Date |
|---|---|---|---|---|
| CPP | Up to $1,433.00 | No change | Up to $1,433.00 | June 26, 2025 |
| OAS (65–74) | $727.67 | 1.0% increase | Approximately $734.95 | July 29, 2025 |
| OAS (75+) | $800.44 | 1.0% increase | Approximately $808.44 | July 29, 2025 |
Understanding the Canada Pension Plan (CPP) Enhancements
What Is the CPP?
The Canada Pension Plan is a contributory, earnings-related social insurance program. It provides retirement, disability, and survivor benefits to contributors and their families.
Recent Enhancements
In 2019, the federal government initiated a gradual enhancement of the CPP to increase retirement income for Canadians. By 2025, the CPP aims to replace one-third (33.33%) of the average work earnings, up from the previous 25%. This enhancement also includes an increase in the maximum level of earnings protected by the CPP by 14% over 2024 and 2025.
Contribution Rates
- Employees and Employers: Each contributes 5.95% of earnings up to the maximum pensionable amount.
- Self-Employed Individuals: Contribute 11.9% of earnings up to the maximum pensionable amount.
For 2025, the maximum pensionable earnings are set at $71,300.
How Much Will You Receive?
The amount you receive from the CPP depends on several factors:
- Contribution History: The total amount you’ve contributed during your working years.
- Years of Contribution: The number of years you’ve made contributions.
- Average Earnings: Your average earnings throughout your career.
- Age of Commencement: The age at which you start receiving CPP benefits.
As of May 2025, the maximum monthly CPP retirement pension is $1,433.00. The actual amount you receive depends on your contributions and the age at which you start receiving benefits
Old Age Security (OAS) Adjustments
What Is OAS?
Old Age Security is a monthly payment available to seniors aged 65 and older who meet the Canadian legal status and residence requirements. Unlike the CPP, you do not need to have been employed to qualify for OAS.
Upcoming Increase in July 2025
OAS payments are reviewed quarterly and adjusted based on the Consumer Price Index (CPI). For the July to September 2025 quarter, OAS benefits will increase by 1.0% due to changes in the CPI.
New Payment Amounts
- Ages 65–74: From $727.67 to approximately $734.95.
- Ages 75 and over: From $800.44 to approximately $808.44.
These increases aim to help seniors maintain their purchasing power amid rising living costs.
Guaranteed Income Supplement (GIS)
The GIS provides additional financial support to low-income seniors receiving OAS. GIS amounts are also reviewed quarterly and adjusted based on CPI changes.
Maximum Monthly GIS Payments (April–June 2025)
- Single, widowed, or divorced: $1,086.88
- Married/common-law partner receives OAS: $654.23
- Married/common-law partner does not receive OAS: $1,086.88
Canada Pension Boost Payment Schedule for June and July 2025
The next CPP and OAS payments are scheduled for:
- June 26, 2025
- July 29, 2025
Payments are typically made on the third-to-last business day of each month.
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Frequently Asked Questions (FAQs)
Q1: How do I apply for CPP and OAS benefits?
You can apply online through your My Service Canada Account or by completing a paper application and mailing it to Service Canada. It’s recommended to apply at least six months before you wish to start receiving benefits.
Q2: Can I receive both CPP and OAS payments?
Yes, if you meet the eligibility criteria for both programs, you can receive payments from both CPP and OAS.
Q3: Are CPP and OAS payments taxable?
Yes, both CPP and OAS payments are considered taxable income. You may need to pay income tax on these amounts depending on your total income.
Q4: What is the OAS recovery tax?
The OAS recovery tax, commonly known as the “clawback,” requires individuals with higher incomes to repay part or all of their OAS pension. For 2025, the recovery tax begins at an annual net income of approximately $90,997.
