CRA Confirms June 2025 Pension Hike – CPP & OAS Benefits Are Rising!
As the cost of living continues to rise, Canadians receiving pensions are set to benefit from a welcomed increase in their monthly support. The Canada Revenue Agency (CRA) has officially confirmed that both Canada Pension Plan (CPP) and Old Age Security (OAS) benefits will see a boost starting June 2025.
These increases are part of routine adjustments to ensure retirees and seniors maintain their purchasing power during inflationary times.
Let’s break down what this increase means for beneficiaries and how much more they can expect to receive each month.
Why Are CPP and OAS Payments Increasing?
Every quarter, the federal government reviews pension payment rates to ensure they align with changes in the Consumer Price Index (CPI).
The goal is to protect the financial well-being of seniors and retirees by adjusting benefits to reflect real-world costs such as food, housing, healthcare, and transportation.
The June 2025 pension hike is based on the inflation rates observed in recent quarters. This latest adjustment is particularly important due to increased economic pressures across the country.
What Are the New CPP and OAS Rates for June 2025?
Below is a detailed table showing the changes in monthly payments for both CPP and OAS starting in June 2025:
| Benefit Type | Previous Monthly Amount | New Monthly Amount (June 2025) | Increase |
|---|---|---|---|
| CPP Maximum (New retirees) | $1,364.00 | $1,433.00 | $69.00 |
| CPP Average (All retirees) | $808.14 | $808.14 | No change |
| OAS (Age 65–74) | $720.00 | $727.67 | $7.67 |
| OAS (Age 75 and older) | $792.00 | $800.44 | $8.44 |
Canada Pension Plan (CPP) – What’s New?
The CPP is a contributory plan, meaning you pay into it during your working years and receive payments during retirement. Here are the key details of the June 2025 update:
- Maximum Monthly Benefit: Increased to $1,433.00 for those starting CPP retirement benefits at age 65.
- Contribution Rate: Employees continue contributing 5.95%, while self-employed individuals contribute 11.90%.
- Maximum Pensionable Earnings: Increased to $71,300, which expands the contribution base.
- No change for average monthly benefits among all current CPP recipients.
This increase will be especially beneficial for new retirees, who can now expect higher lifetime monthly payouts under the updated benefit structure.
Old Age Security (OAS) – Updated Payments
The OAS program is available to most Canadian seniors aged 65 and older, with payment amounts adjusted quarterly. Here’s what changes in June:
- Ages 65–74: Monthly payment increases to $727.67.
- Ages 75+: Monthly payment increases to $800.44.
- The OAS pension is not dependent on prior work or contributions, but on age and residency in Canada.
- Additional benefits, such as the Guaranteed Income Supplement (GIS), are expected to follow similar increases in July.
These changes help seniors maintain their standard of living during periods of economic stress.
Eligibility Requirements for CPP and OAS
CPP Eligibility
- Must be at least 60 years old to begin receiving payments.
- Must have made at least one valid contribution during your working years in Canada.
- The longer you delay CPP (up to age 70), the higher your monthly benefit will be.
OAS Eligibility
- Must be at least 65 years old.
- Must have resided in Canada for at least 10 years after turning 18.
- Deferring OAS up to age 70 results in a 0.6% monthly increase, up to a maximum of 36% extra.
June 2025 Payment Date
- Both CPP and OAS payments will be issued on Wednesday, June 26, 2025.
- Beneficiaries receiving direct deposits will see the increased amounts reflected in their bank accounts automatically.
- No action is needed if you are already enrolled.
The CRA’s confirmation of increased CPP and OAS benefits starting June 2025 offers much-needed relief for millions of seniors across Canada.
With the cost of essential goods and services still on the rise, this adjustment ensures that pensions continue to provide meaningful support. Beneficiaries should take note of the new rates and upcoming payment date to manage their monthly budgets effectively.
FAQs
How do I know if I qualify for the new CPP or OAS rates?
If you’re already receiving CPP or OAS payments, the increased amount will be automatically applied in June 2025. Eligibility is based on your age, contributions, and residency.
Will the increase in CPP and OAS impact other benefits?
Potentially, yes. Some income-tested benefits such as the GIS may adjust depending on your new pension amount. It’s advised to review any benefit notices received in July 2025.
Do I need to reapply to get the higher payment amount?
No, existing recipients will receive the updated payments automatically. New applicants should ensure their documentation is complete and submitted through the correct channels.
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