Good news for Canadian seniors: CPP and OAS benefits are rising again in July 2025. These regular increases help protect retirees from inflation and ensure stable income during retirement. The federal government adjusts Canada Pension Plan (CPP) and Old Age Security (OAS) payments based on inflation data and cost-of-living changes. Here’s everything you need to know about the CPP OAS payment increase in July 2025, including the updated amounts, eligibility, and what this means for your finances.
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Why Are CPP and OAS Increasing in July?
Both CPP and OAS are adjusted regularly to account for inflation:
- OAS is adjusted quarterly (January, April, July, and October).
- CPP is adjusted annually in January, but enhanced CPP contributions and benefits phased in since 2019 continue to result in higher average payments.
In July 2025, new quarterly adjustments to OAS will apply, while CPP recipients will continue receiving enhanced amounts due to past reforms and growing contributions.
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OAS Payment Increase July 2025
Starting July 1, 2025, the maximum monthly Old Age Security (OAS) payments will increase as follows:
- Ages 65 to 74: From approximately $713.34 to $734.95
- Ages 75 and over: From approximately $784.67 to $808.45
This represents a July 2025 increase of roughly $21.61 for seniors aged 65–74, and $23.78 for those aged 75+.
OAS adjustments are based on the Consumer Price Index (CPI), ensuring seniors can keep up with rising costs, especially for essentials like food, housing, and healthcare.
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CPP Payment – Continued Increase in 2025
While CPP payments are officially adjusted each January, CPP amounts paid in July 2025 continue to reflect the ongoing effects of enhancements made to the plan.
As of July 2025:
- The average monthly CPP retirement pension is approximately $844.53
- The maximum monthly CPP benefit at age 65 is $1,433.00
Though no mid-year adjustment is applied, many beneficiaries are receiving more this year than in 2024 due to the CPP enhancement program, which boosts benefits gradually based on increased contributions since 2019.
Who’s Eligible for the Increase?
You’re eligible to receive the CPP or OAS payment increases if:
- For OAS:
- You are 65 or older.
- You have resided in Canada for at least 10 years since turning 18.
- Your income is below the recovery tax threshold.
- For CPP:
- You are at least 60 and have made at least one valid contribution to the plan.
No action is required. Increases are automatic for eligible recipients already enrolled and receiving payments.
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When Will the New Amounts Be Paid?
The next CPP and OAS payment date is July 29, 2025. These increased amounts will be reflected in the payments sent that day, whether by cheque or direct deposit.
Summary: How Much More Will You Get?
| Program | Age Group | Monthly Increase (Approx.) | New Monthly Amount |
|---|---|---|---|
| OAS | 65–74 | +$21.61 | $734.95 |
| OAS | 75+ | +$23.78 | $808.45 |
| CPP | All ages (avg.) | ~No change from January | ~$844.53 avg, $1,433 max |
Final Thoughts
The CPP OAS payment increase in July 2025 will provide meaningful support to millions of Canadian seniors coping with rising living costs. Whether you’re already receiving retirement benefits or planning for the future, understanding these regular increases is key to effective budgeting in retirement.
Stay informed and ensure your account information is up to date with the CRA or Service Canada to receive your benefits smoothly and on time.