If you’re a Canadian retiree wondering about the CPP OAS increase in June 2025, you’re not alone — and you’re not wrong to feel confused. With talk of rising pension payments, many seniors are checking their June deposits only to find no change in their CPP. That’s because CPP and OAS follow different indexation schedules.
There is no CPP or OAS increase in June 2025 for Canadian seniors. While many are looking for a mid-year boost, it’s important to know that CPP is only adjusted once per year in January, and that increase already took effect with a 2.6% rise in January 2025.
OAS, on the other hand, adjusts quarterly, but there is no change this June. The next OAS increase will come in July 2025, reflecting a 1% inflation-linked bump. So for June, both CPP and OAS payments will remain at their current levels. Here’s a breakdown of what’s actually increasing, when it’s happening, and how it impacts your income.
Table of Contents
OAS Increase 2025: What’s Happening in July?
Old Age Security (OAS) is getting a 1.0% increase starting in July 2025, based on recent inflation data from the Consumer Price Index (CPI).
Key Details:
- Adjustment Period: July–September 2025
- Reason: Quarterly CPI-based indexation
- Year-over-year change: +2.3% compared to July 2024
- New Maximum OAS for 75+: $808.44/month
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If you’re already receiving OAS, you don’t need to do anything. The increase is automatic and will be reflected in your July 2025 payment.
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No CPP Increase in June — And Here’s Why
While OAS changes multiple times a year, the Canada Pension Plan (CPP) follows a very different schedule.
Key CPP Facts:
- CPP increases once per year, every January
- The last adjustment was in January 2025, with a 2.6% increase
- That rate remains fixed through December 2025
- No changes occur in June
This annual adjustment is based on the average CPI for the previous 12 months, ensuring consistency and predictability for contributors and beneficiaries.
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Why Do OAS and CPP Adjust Differently?
The difference in indexation schedules boils down to policy design and intent.
| Factor | OAS | CPP |
|---|---|---|
| Adjustment Frequency | Quarterly (Jan, Apr, Jul, Oct) | Annually (January only) |
| Based On | Latest CPI readings | Average CPI from prior year |
| Purpose | Short-term cost-of-living protection | Long-term stability and administrative simplicity |
| Administered By | Service Canada | Canada Pension Plan (via Service Canada/CRA) |
In Summary:
- OAS aims to keep pace with near-term inflation
- CPP focuses on long-term planning and stable administration
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Estimated Benefit Changes – July 2025
| Benefit | Increase Date | Increase Amount | Payment Impact in June |
|---|---|---|---|
| OAS | July 2025 | ~1.0% (2.3% YoY) | No June increase, raised in July |
| CPP | January 2025 | 2.6% | Already applied, no further change |
So, if you’re 75 or older, expect to receive $808.44/month starting July 2025. Those aged 65–74 will also see a proportional increase based on the same indexation.
What You Should Do
Here’s how you can prepare and stay informed:
1. Check Your Payment Statements
- OAS: Watch for a new, higher amount in your July 2025 deposit
- CPP: The current amount stays the same until January 2026
2. Budget Accordingly
- Plan for a slight increase in OAS next month, but don’t expect more from CPP until next year.
3. Stay Tax Compliant
- Make sure you and your spouse (if applicable) have filed your 2024 taxes. This is especially important for avoiding OAS clawbacks due to net income thresholds.
4. Understand Clawback Rules
- The OAS Recovery Tax (clawback) starts when your net income exceeds $90,997 for 2025.
- If your income is below this threshold, you’ll receive the full indexed benefit.
Final Takeaway: Know When to Expect Increases
In July 2025, Canadian seniors will see a welcome boost in their OAS payments, thanks to a quarterly inflation adjustment. However, CPP recipients will not see any mid-year increase, as that program only updates payments once annually — in January.
By understanding how each program works, retirees can better manage their income and stay prepared for the months ahead.
If you need help calculating your new OAS amount, confirming eligibility, or planning around CPP’s annual adjustment, feel free to reach out. Staying informed means staying empowered — especially in retirement.