In 2025, the second additional CPP contribution (CPP2) applies to earnings between $71,300 and $81,200, with a 4.00% rate for employees and employers. The maximum additional contribution for 2025 is $396.00 each for employees and employers, or $792.00 for self-employed individuals. This is a significant increase from 2024's $188.00 maximum.
The maximum CPP payment in 2025 is $1,433 per month or $17,197 per year. This includes the maximum base CPP payment of $1,387 per month plus a maximum enhanced CPP payment of $46 per month. This maximum amount is payable at age 65 but most people will never reach this maximum.
Old Age Security Payment Updates
For December 2025, OAS payments reflect a 1.2% quarterly indexation increase tied to the Consumer Price Index. Maximum monthly amounts now stand at $740.82 for ages 65-74 and $814.90 for those 75 and older, up from previous quarters.
The maximum annual CPP retirement benefit is $17,196 as of January 2025.
Second additional CPP contributions (CPP2) began on January 1, 2024. They are additional CPP contributions for workers who earn higher wages. CPP2 contributions are made in addition to base CPP and first additional CPP contributions.
Latest payment adjustment - January to December 2026
Based on changes in the CPI, CPP benefits paid in 2025 increased by 2.0% for 2026.
The Canada Pension Plan (CPP) survivor's pension is a monthly payment paid to the legal spouse or common-law partner of the deceased contributor.
For 2025, both CPP and EI payroll rates have increased, and the updated thresholds mean higher contributions for both employers and employees. Here's the quick view: CPP contribution rate: 5.95% (up from 5.70% in 2024) EI premium rate (outside Quebec): 1.70% (up from 1.66%)
The $1,200 payment is a one-time direct deposit issued by the Canada Revenue Agency for seniors classified as low income based on their most recent tax return. The payment is not a loan, does not need to be repaid and does not replace existing monthly benefits.
The maximum amount of income covered by the CPP will increase from $55,900 to about $82,700 when the program is fully phased in by 2025. This means higher-income workers will be eligible to earn CPP benefits on a larger portion of their income.
Who qualifies for the $6,000 senior deduction? People who turned 65 by Dec. 31, 2025, are eligible for the new deduction, according to the IRS. The deduction provides $6,000 for each qualifying individual, or $12,000 for married couples who both qualify.
Not only will the government be issuing a one-time cash payment of $500 to be paid in August 2021, this year's Federal Budget also includes the highest quarterly adjustment to existing OAS payments since July 2014.
Who Will Receive the $1,100 Centrelink Bonus. The bonus will be automatically issued to eligible Australians receiving approved Centrelink payments. Those expected to qualify include: Age Pension recipients.
Pension increases for 2025 varied, with U.S. Social Security seeing a 2.5% Cost-of-Living Adjustment (COLA) in January, while some state/local pensions (like NY State) had smaller increases (e.g., 1.2%) and different schedules, and federal COLA estimates for 2026 were announced later in 2025 (around 2.8%). Key changes included higher IRS limits for retirement plans and increased Social Security taxable maximums for 2025, with varying boosts based on inflation data for the prior year.
For context, the standard OAS pension in early 2026 stands at approximately $642.25 per month for full qualifiers, with quarterly revisions to align with the Consumer Price Index. Seniors aged 75 and above already enjoy a permanent 10% increase implemented in prior years, which forms part of this enhanced framework.
Some pensions pay you a fixed amount… + read full definition income amount – If you report eligible pension, superannuation, or annuity. + read full definition payments on your return, you may be able to claim up to $2,000 towards the pension income amount. This is a non-refundable federal tax credit.
A new boost to Canada Pension Plan (CPP) and Old Age Security (OAS) payments is set to take effect in January, with direct deposits expected by January 14, 2026 for eligible recipients. The increase reflects annual adjustments tied to inflation and is designed to help seniors keep pace with rising living costs.
Based on changes in the Consumer Price Index (CPI), OAS benefits increased by 0.3% for the January to March 2026 quarter, for an increase of 2.0% over the past year, from January 2025 to January 2026.
The year 2025 marks the introduction of the Second Additional CPP Contributions, also known as CPP2. This additional contribution tier aims to provide enhanced retirement benefits. The Year's Additional Maximum Pensionable Earnings (YAMPE) for CPP2 is set at $81,200.
Death benefit from an employer. A death benefit from an employer is the total amount received on or after the death of an employee or former employee in recognition of their service in an office or employment. Up to $10,000 of the total of all employer death benefits received is exempt from being taxed.
Canadian Government Income Security Programs
As a non-resident of Canada, you may be entitled to apply for Canada Pension Plan (CPP) payments and Old Age Security Pension (OAS) payments. Canada also has agreements with a number of other countries that offer comparable pension programs.