In 2025, both the Canada Pension Plan (CPP) and Old Age Security (OAS) benefits have increased to help seniors and pensioners keep up with the rising cost of living. These increases reflect the government’s regular indexation practices and continued implementation of the CPP enhancement strategy. Here’s a breakdown of exactly how much CPP and OAS are increasing in 2025, based on official government figures from Canada.ca.
CPP Increase in 2025
1. Annual Cost-of-Living Adjustment
CPP payments have increased by 2.6 percent in 2025. This is based on the average change in the Consumer Price Index (CPI) from one year to the next, which ensures that pensioners don’t lose purchasing power due to inflation. The increase took effect on January 1, 2025.
2. CPP Enhancement Measures
CPP enhancement continues to be phased in. This long-term plan, introduced in 2019, gradually increases the amount workers and employers contribute so future retirees receive higher monthly benefits. In 2025:
- CPP replaces up to 33.33 percent of a contributor’s average earnings (up from 25 percent before 2019).
- The maximum pensionable earnings cap has increased from $68,500 in 2024 to $71,300 in 2025.
- A new upper limit called the second earnings ceiling was also introduced, set at $81,200 in 2025. Income earned between $71,300 and $81,200 is subject to a second-tier CPP contribution, further boosting retirement benefits for future recipients.
3. CPP Monthly Benefit Amounts for 2025
- The maximum CPP retirement pension for new recipients starting at age 65 in 2025 is $1,433.00 per month.
- The average CPP retirement pension in early 2025 is approximately $844.53 per month.
Actual amounts depend on your contributions and the number of years you contributed to CPP.
CRA Benefit Payments Coming in August 2025: What to Expect and Who Will Get Paid
OAS Increase in 2025
1. Quarterly Cost-of-Living Adjustments
Old Age Security benefits are reviewed and adjusted every quarter in January, April, July, and October. For the July to September 2025 quarter, OAS payments rose 1.0 percent, resulting in a 2.3 percent increase compared to the same period in 2024. These adjustments are tied directly to inflation using CPI data.
2. OAS Monthly Benefit Amounts in 2025
- If you are aged 65 to 74, the maximum monthly OAS payment from July to September 2025 is $734.95.
- If you are 75 years or older, you receive a 10 percent age-based increase, raising your maximum monthly OAS payment to $808.45.
These amounts are before any deductions for income taxes or GIS (Guaranteed Income Supplement).
3. OAS Clawback Thresholds for 2025–2026
- If your net income exceeds $90,997, you may begin to see a partial OAS recovery tax (commonly called the clawback).
- OAS is fully clawed back if your net income reaches $148,451 or more for the July 2025 to June 2026 payment year.
Summary of 2025 CPP OAS Increases
| Benefit Type | 2025 Adjustment | Monthly Amount (Maximum) |
|---|---|---|
| CPP – Annual Adjustment | +2.6 percent | $1,433.00 |
| CPP – Average Payment | — | $844.53 |
| OAS (Aged 65–74) | +2.3 percent (year over year) | $734.95 |
| OAS (Aged 75+) | Includes 10 percent top-up | $808.45 |
What This Means for You
If you’re receiving CPP or OAS in 2025, you will notice small but meaningful increases to your monthly payments. These boosts are designed to protect seniors’ purchasing power and help maintain financial stability in retirement. The enhanced CPP plan will particularly benefit younger workers who contribute now and retire in the decades ahead.
Keep in mind that individual benefit amounts can vary based on your personal income and contribution history. For the most accurate estimate of your CPP and OAS benefits, use your My Service Canada Account or consult directly with Service Canada.
Stay informed, and plan ahead—every dollar counts in retirement.
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