Canada’s retirement benefits are getting a fresh infusion this summer. Starting July 2025, both the Canada Pension Plan (CPP) and Old Age Security (OAS) monthly payments will increase, bolstered by inflation adjustments and CPP enhancements rooted in Canada’s official policy framework. Here’s a comprehensive look at what’s coming, who benefits, and when the funds hit your account—all based on the latest from Canada.ca.
Table of Contents
When Payments Arrive in July 2025
Both CPP and OAS payments are issued on the third-last business day of each month:
- July 29, 2025 is the next payment date for both programs.
1. Canada Pension Plan (CPP) Increase
Why It’s Growing
- The ongoing CPP enhancement, begun in 2019, raises the replacement rate from 25% to 33.33% of average career earnings and expands the earnings ceiling.
Who’s Eligible
- Contributors who worked and maxed out CPP contributions, particularly after 2019.
- Those who delayed retirement up to age 70—boosting their benefit by 0.6% per month deferred, up to a total of 36%.
How Much You’ll See
- While individual amounts vary based on exact contribution history and deferral timing, maximum CPP pensions starting January 2025 reflect the enhancement.
- Average payments vary; delaying CPP increases monthly income by up to 36% at age 70.
New $1,433 CPP Payment Coming on June 26, 2025 – Who Qualifies and What to Expect
2. Old Age Security (OAS) Increase
Why OAS Increasing
- OAS is adjusted quarterly based on the Consumer Price Index (CPI).
- From July to September 2025, OAS will increase by 1.0%, part of a 2.3% rise over the past year.
Who Benefits
- All current OAS recipients.
- Seniors aged 75+ will see this increase added to their existing 10% age‑75 supplement, which began in 2022.
Payment Amounts
Based on April–June rates, here’s what to expect after the July 2025 boost:
| Age Group | April–June 2025 | Projected July–September |
|---|---|---|
| 65–74 | $727.67 | ~$734.95 |
| 75 and over | $800.44* | ~$808.44 |
*Includes permanent 10% top-up for 75+ seniors.
Mark Carney $2,350 Payment for Seniors Confirmed – Are You Eligible?
What You Should Do
- Confirm direct deposit details in My Service Canada Account.
- No action needed to receive increases—they’re automatic.
- Monitor your July 29 cheque for larger amounts.
- High-income recipients may be subject to OAS recovery tax (clawback):
- Starts when net income exceeds $93,454 and fully applies at around $151,668 for ages 65–74; thresholds rise for 75+.
Summary Table
| Program | Date | Adjustment | New Monthly Max |
|---|---|---|---|
| CPP | July 29, 2025 | Enhancement & deferral bonus | Varies—up to 33%+ earned; delayed = higher |
| OAS (65–74) | July 29, 2025 | CPI +1.0% | ~$734.95 |
| OAS (≥75) | July 29, 2025 | CPI +10% age 75 boost | ~$808.44 |
Final Takeaway
The CPP & OAS increase payment in July 2025 brings tangible benefits for Canadian seniors—ranging from modest coverage adjustments to significant inflation protection and enhanced CPP payouts. If you’ve maximized contributions or delayed benefits, you stand to gain the most. Regardless, the upcoming July 29 payments will provide a welcome lift to retirement incomes nationwide.
For personalized figures and to ensure seamless delivery, log into your My Service Canada Account or consult your financial plan ahead of the increase.