CPP and OAS Payments Get a Major Boost from July 2025, Here’s Who Gets Up to $2,400 Monthly

From July 2025, millions of Canadian seniors will receive larger monthly retirement payments thanks to cost-of-living adjustments tied to inflation. The federal government has confirmed increases to the Canada Pension Plan (CPP), Old Age Security (OAS), and Guaranteed Income Supplement (GIS), providing much-needed financial support to retirees during a time of rising living costs.

These enhanced payments will be made automatically and require no action from recipients.

CPP Payments Rise to $1,433 Per Month

One of the most significant updates is the increase in the maximum CPP retirement pension, which will now reach $1,433 per month in 2025. This increase is part of the CPP Enhancement program, which is now fully implemented after years of gradual phase-in.

Previously, CPP replaced 25% of average earnings. With the enhancement, it now covers up to 33.33%, significantly improving retirement income security for contributors.

Key highlights of the 2025 CPP increase:

• Maximum CPP: $1,433/month
• Average CPP: Approx. $900/month (based on individual contribution history)
• No action required—eligible retirees will receive the new amounts automatically

The CPP payment dates for the second half of 2025 are:
July 29, August 27, September 25, and continuing monthly.

Old Age Security (OAS) Benefits Also Increase

The OAS pension—available to Canadians aged 65 and older—has been adjusted by 1.0% for the July–September 2025 quarter, reflecting an annual increase of 2.3%, based on the Consumer Price Index (CPI).

Updated maximum monthly OAS amounts:

• Ages 65–74: $734.95
• Ages 75 and older: $808.45

These payments are indexed quarterly, meaning they adjust automatically to reflect changes in the cost of living. The next OAS payment date is July 27, 2025, with new rates fully applied.

GIS Top-Up Sees Further Boost for Low-Income Seniors

The Guaranteed Income Supplement (GIS)—a monthly payment for low-income seniors—has also been increased for 2025. The new maximum for single recipients is $1,097.75/month, in addition to their OAS payments.

When combined, eligible low-income seniors could receive up to $2,250–$2,403 per month in total federal retirement benefits.

GIS is especially helpful for seniors with little or no other income and is paid alongside OAS on a monthly basis.

Who Benefits Most from These Adjustments?

These increases are automatically applied to those already receiving benefits. Here’s a breakdown of who benefits most:

Canada Pension Plan (CPP)

• Best suited for those who made full and consistent contributions, especially post-2019, when the enhancement began
• You must have contributed for around 40 years to receive the maximum CPP

Old Age Security (OAS)

• Available to Canadians aged 65 and above
• Amounts are prorated based on years of residence in Canada after age 18

Guaranteed Income Supplement (GIS)

• For low-income individuals or couples receiving OAS
• Maximum benefits go to single seniors with no other income sources

Automatic Payments—No Application Required

There is no need to reapply for the increased CPP, OAS, or GIS payments. As long as you are currently receiving any of these benefits, the new amounts will be:

• Automatically calculated
• Deposited directly into your bank account
• Reflected in your July–December 2025 monthly statements

To avoid issues, ensure your banking information is up to date through your My Service Canada Account or by calling 1-800-277-9914.

Payment Schedule for July to December 2025

Benefit	Payment Frequency	Next Payment Date
CPP	Monthly	July 29, August 27, September 25, etc.
OAS (65–74)	Monthly	July 27 (with 1.0% increase applied)
OAS (75+)	Monthly	July 27 (new maximum of $808.45)
GIS	Monthly	With OAS on same dates

These payments will appear on your bank statement or benefit record with labels such as “Canada Pension Plan,” “Old Age Security,” or “Guaranteed Income Supplement.”

Total Possible Monthly Retirement Income

Depending on eligibility, a Canadian retiree may now receive:

• Up to $1,433/month from CPP
• Up to $808.45/month from OAS (75+)
• Up to $1,097.75/month from GIS (if applicable)

This totals between $2,250 and $2,403/month, offering stable, inflation-adjusted income for seniors across the country.

What Retirees Should Do Now

Although the increases are automatic, it’s wise to take a few steps to ensure smooth processing:

1. Log in to your My Service Canada Account

• Confirm your direct deposit information
• Check for payment notifications or updates

1. Contact Service Canada if:

• You don’t receive your payment
• You notice incorrect amounts
• Your personal or banking information has changed

1. Stay informed

• Keep an eye on quarterly OAS increases
• Use your account to track GIS eligibility or changes

Why These Increases Matter Now

With inflation continuing to impact daily expenses—from groceries to utilities—these adjustments provide timely relief to Canada’s aging population. They also reaffirm the government’s long-term commitment to pension stability, ensuring that seniors are not left behind financially.

For many, these payments are the primary source of retirement income, and increases—even by a few percent—can make a substantial difference in monthly budgeting.

Frequently Asked Questions (FAQs)

Q1. Do I need to apply for the CPP, OAS, or GIS increases?
A: No. If you’re already receiving these benefits, the increases will be applied automatically.

Q2. How much will I receive if I don’t qualify for the maximum CPP?
A: The average CPP payment is about $900/month, depending on your contribution history.

Q3. Will GIS recipients see larger payments too?
A: Yes. GIS is tied to OAS and will reflect new higher rates—especially helpful for low-income single seniors.

Q4. When are the updated payments deposited?
A: CPP payments will begin on July 29, 2025, and OAS/GIS on July 27, 2025.

Q5. Can I receive both CPP and OAS at the same time?
A: Yes. Most retirees receive both payments based on their contribution and residency records.