The Government of Canada has released updated benefit amounts and contribution figures for the CPP and OAS. These programs remain vital to the country’s retirement system, supporting millions of Canadians through monthly pensions, disability payments, survivor benefits, and income-tested supplements.
For 2025, CPP payments have increased by 2.6% compared with the previous year, while OAS payments for the quarter of October to December 2025 reflect quarterly cost-of-living adjustments. These updates impact retirees, working contributors, and low-income seniors nationwide.
Together, the two programs form the backbone of retirement security in Canada: the CPP, a contributory plan based on earnings, and the OAS, a tax-funded pension available to all eligible seniors.
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CPP Benefits Increase in 2025
The CPP provides monthly benefits depending on contributions and circumstances. The maximum retirement pension for a new beneficiary at age 65 now stands at $1,433.00 per month. Other categories, such as disability pensions, survivor pensions, and post-retirement benefits, have also been revised.
The 2025 adjustments highlight how CPP supports not only retirees but also surviving spouses, children of deceased contributors, and individuals with disabilities. For instance, the disability pension reaches a maximum of $1,673.24 monthly, while survivor benefits for those aged 65 and older rise to $859.80 per month.
CPP Benefit Amounts
| Type of Benefit | Flat Rate Portion | Earnings-Related Portion | Total |
|---|---|---|---|
| Retirement pension (age 65) | Not applicable | $1,433.00 | $1,433.00 |
| Disability pension | $598.49 | $1,074.75 | $1,673.24 |
| Survivor’s pension – under 65 | $233.50 | $537.38 | $770.88 |
| Survivor’s pension – 65+ | Not applicable | $859.80 | $859.80 |
| Post-retirement benefit (65) | Not applicable | $49.39 | $49.39 |
| Death benefit (one-time) | $2,500.00 | Not applicable | $2,500.00 |
| Survivor/disability combined | Not applicable | $1,683.57 | $1,683.57 |
These figures confirm that CPP benefits are broad-based, covering a range of life situations beyond retirement.
Pensionable Earnings and Contribution Rates
The CPP contribution system ensures that workers and employers share the responsibility of funding future pensions. For 2025, the Year’s Basic Exemption (YBE) is fixed at $3,500. The Year’s Maximum Pensionable Earnings (YMPE) is $71,300, while the Year’s Additional Maximum Pensionable Earnings (YAMPE) is $81,200.
Employees and employers contribute 5.95% on base pensionable earnings and an additional 4% under the second tier. Self-employed individuals contribute both shares, paying 11.90% and 8% respectively. The maximum annual contribution for employees is $4,034.10 (base) plus $396 (additional), while for self-employed contributors the combined maximum is $8,860.20.
The CPP remains one of the largest public financial programs in Canada. By 2023, there were 15.9 million active contributors, and total contributions for the period 2024–2025 are projected to be $88.25 billion.
OAS Payments Adjusted for October to December 2025
The OAS program is available to seniors aged 65 and older, with payment levels determined by age and income. Unlike CPP, OAS does not depend on contributions; instead, it is based on residency. For the last quarter of 2025, OAS amounts have been adjusted.
Seniors aged 65 to 74 receive a maximum of $740.09 per month, while those aged 75 and older receive $814.10 per month, acknowledging the higher costs associated with advanced age.
Income-tested supplements such as the Guaranteed Income Supplement (GIS) and the Allowance programs continue to play a crucial role. A single pensioner may receive up to $1,105.43 per month under GIS, provided their annual income is below $22,440. Spouses and survivors may qualify for varying amounts depending on household circumstances.
OAS Maximum Amounts (October – December 2025)
| Benefit Type | Maximum Monthly Amount | Annual Income Cut-off | Top-up Income Cut-off |
|---|---|---|---|
| OAS pension (65–74) | $740.09 | Not applicable | Not applicable |
| OAS pension (75+) | $814.10 | Not applicable | Not applicable |
| GIS – Single OAS recipient | $1,105.43 | $22,440 | $10,256 |
| GIS – Spouse of non-recipient | $1,105.43 | $53,808 | $20,512 |
| GIS – Spouse of OAS recipient | $665.41 | $29,616 | $8,704 |
| Allowance | $1,405.50 | $41,472 | $8,704 |
| Allowance for Survivor | $1,675.45 | $30,216 | $10,256 |
These supplements remain vital for seniors who rely on limited resources, providing additional support to cover basic living expenses.
With a combined structure of contributory and universal benefits, Canada’s retirement income system continues to support millions of citizens. The CPP provides earnings-related pensions funded by active contributors, while the OAS offers universal support to seniors regardless of past contributions. Together, they ensure that older Canadians, survivors, and individuals with disabilities receive stable and predictable income in 2025.
The adjustments for 2025 include higher CPP benefits, updated contribution thresholds, and revised OAS payments for October to December, reinforcing the system’s adaptability in meeting both economic conditions and demographic changes.
FAQs
What is the maximum CPP retirement pension in 2025?
The maximum CPP retirement pension at age 65 is $1,433 per month for new beneficiaries starting in January 2025.
How much can a senior aged 75 or older receive under OAS in late 2025?
Seniors aged 75 and above are entitled to a maximum OAS pension of $814.10 per month from October to December 2025.
What is the maximum disability pension under CPP in 2025?
The CPP disability pension reaches a maximum of $1,673.24 per month, combining both the flat-rate and earnings-related portions.
Who qualifies for the Guaranteed Income Supplement (GIS)?
The GIS is available to low-income seniors who receive OAS. For example, a single senior with an income below $22,440 can receive up to $1,105.43 monthly.
What is the Year’s Maximum Pensionable Earnings (YMPE) for 2025?
The YMPE for 2025 is set at $71,300, while the Year’s Additional Maximum Pensionable Earnings (YAMPE) is $81,200. These determine CPP contribution limits.