June 2025 CPP And OAS Pension Increases Confirmed By CRA – All You Need To Know
Starting June 2025, the Canada Revenue Agency (CRA) will implement new pension increases for both the Canada Pension Plan (CPP) and the Old Age Security (OAS) programs.
These increases aim to address rising living costs and inflation, offering additional support to Canadian seniors dependent on fixed retirement incomes.
CPP and OAS Pension Changes: June 2025 Summary
Here’s a quick overview of the updated pension amounts and new policy changes:
| Feature | Details |
|---|---|
| Effective Date | June 2025 |
| CPP Increase Rate | 4.4% |
| OAS Increase Rate | 0.80% (quarterly adjustment) |
| Max CPP Monthly Payment | $1,364.60 |
| Average CPP Payment | $758.32 |
| Max OAS (65–74 years) | $713.34 |
| Max OAS (75+ years) | $784.67 |
| CPP Contribution Cap | Increased to $68,500 |
| CPP2 Tier | Activated for high-income earners |
CPP Pension Increase – What’s Changing in June 2025
The Canada Pension Plan is an employment-based benefit funded through payroll contributions. For 2025, CPP payments are rising 4.4%, based on the Consumer Price Index (CPI).
CPP Key Highlights:
- Maximum monthly benefit for new recipients is $1,364.60
- Average monthly payout across all recipients is $758.32
- Maximum pensionable earnings have increased from $66,600 to $68,500
- Introduction of CPP2, a new tier that applies to higher-income earners exceeding the standard cap, allowing for additional contributions and enhanced benefits later on
These adjustments ensure the CPP maintains purchasing power for retirees and reflects real-world inflation pressures.
OAS Pension Increase – What You Should Know
The Old Age Security (OAS) pension is reviewed every quarter, and benefits are adjusted based on CPI data. From June 2025, OAS payments will increase 0.80% to help seniors cope with inflation.
OAS Payment Details:
- Seniors aged 65 to 74: Monthly maximum payment will be $713.34
- Seniors aged 75 and older: Monthly maximum will rise to $784.67, which includes the 10% permanent increase implemented in 2022
These quarterly increases help protect seniors who rely on OAS for essential expenses such as housing, medication, and groceries.
Eligibility for CPP and OAS Payments
CPP Eligibility Requirements:
- Must be at least 60 years old
- Must have made at least one valid contribution through employment or self-employment in Canada
OAS Eligibility Requirements:
- Must be 65 years or older
- Must be a legal resident of Canada
- Must have lived in Canada for at least 10 years after turning 18
No action is required if you’re already receiving benefits—the increase will be applied automatically.
How to Access the Increased Payments
Payments will be sent as direct deposits or mailed cheques, depending on your chosen method. To ensure timely delivery:
- Log in to your CRA My Account to verify payment amounts and status
- Update banking and address information if there have been recent changes
- File your 2024 tax return to ensure benefit eligibility is assessed correctly
The CPP and OAS pension increases coming in June 2025 are essential adjustments that will help millions of Canadian seniors keep pace with the rising cost of living.
By linking payments to inflation and expanding contribution caps for higher earners, the government aims to offer a more sustainable and responsive retirement income system.
FAQs
When will the CPP and OAS increases take effect?
The increases will be applied automatically starting June 2025.
Do I need to apply for the pension increase?
No. If you are eligible for CPP or OAS, the increase will be applied automatically to your existing payments.
What is CPP2 and who qualifies for it?
CPP2 is a new second-tier pension plan for high-income earners, allowing additional contributions above the standard cap to boost retirement payouts later.
Leave a Reply