New CPP and OAS Payments Arrive This Week
The latest round of Canada Pension Plan and Old Age Security payments is being rolled out this week, and many Canadians are keeping an eye on their bank accounts as the deposits are scheduled to land on Wednesday. Since this is the second-last payment cycle of the year, a lot of people are double-checking what they qualify for and how much they can expect.
To start with, CPP is paid to anyone aged 60 or older who has made at least one contribution during their working years. Once someone qualifies, the payments continue for life. OAS, meanwhile, is available to most people once they reach age 65, even if they have never worked, as long as they meet residency requirements. Most individuals are automatically enrolled, so in many cases no action is required beyond meeting the eligibility rules.
For CPP, contributions are made throughout a person’s working life, with both employees and employers paying into the plan. In 2025, the contribution rate has been set at 5.95 per cent on earnings up to $71,300. Anyone earning above that pays an additional amount up to a secondary limit. Self-employed workers cover both the employee and employer portions, so their contributions are higher but result in the same benefit structure later on.
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OAS works differently. People must have lived in Canada for at least 10 years after age 18 to receive payments while living in the country. Those living abroad still qualify in many cases, but they need at least 20 years of Canadian residency and must have been citizens or legal residents when they left.
When it comes to how much someone can receive, the numbers vary. CPP amounts are based on how long someone contributed, how much they earned on average, and when they choose to start receiving payments. Beginning early will naturally reduce the monthly total, while waiting longer increases it. But there is no added benefit to waiting past age 70, as the maximum amount is reached by then. The current maximum monthly CPP payment at age 65 is $1,433, but the average person receives around $848.
OAS has its own structure. Between October and December, the maximum payment was just over $740 a month for those aged 65 to 74, and just above $814 for those 75 and older. These amounts can shift slightly throughout the year due to quarterly adjustments.
There are also special rules that prevent people from being penalized for times when they earned little or no income, such as during child-rearing or disability. Certain low-earning years are dropped from the calculation to avoid reducing their pension unnecessarily.
For anyone planning ahead, the final CPP and OAS payment of the year will be deposited on Dec. 22, and next year’s payments are scheduled for the end of each month, beginning in January.
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