CPP Payment Dates 2025: A Complete Guide on CPP Payments

The next Canada Pension Plan (CPP) payment date is Spetember 25, 2024. CPP payments are usually disbursed on the third-to-last business day of each month, except December, when they are disbursed earlier on the third-to-last business day before Christmas.

CPP Payment Dates for 2024

The Canada Pension Plan payment dates for 2024 are:

The CPP is one of Canada’s three government-administered retirement pension programs, alongside the Old Age Security (OAS) and the Guaranteed Income Supplement (GIS). All three pensions are paid out on the same day, making the CPP and OAS payment dates coincide with the GIS.

If you’re signed up for direct deposit, your CPP payments will be deposited into your bank account on the specified CPP dates. However, if you opt for CPP cheques instead, expect a slight delay as they’re only sent out during the last three business days of the month.

If your payment doesn’t arrive on the scheduled CPP dates, first check with your bank. There may be an issue with your account or a problem on the bank’s end.

If the bank doesn’t find any problems, contact Service Canada. It’s best to wait at least a week after the expected payment CPP pay dates before reaching out. You can contact Service Canada at their toll-free number: 1-800-277-9914.

What is CPP in Canada?

The CPP retirement pension is a monthly, taxable benefit designed to replace a portion of your income once you retire. If you qualify, you’ll receive these payments for life.

The Canada Pension Plan (CPP) is a crucial part of Canada’s social security system, providing eligible residents with a monthly benefit upon retirement. It also supports individuals with disabilities and survivors of deceased CPP contributors.

Contributions to the CPP are mandatory and come from both employers and employees throughout their working years. If you’ve seen a CPP deduction on your payslip or T4, you’re likely eligible to receive monthly payments after retirement.

The CPP Investment Board pools and invests these contributions to generate returns and ensure the fund’s long-term stability. Once individuals reach retirement age, they can begin receiving CPP retirement benefits, providing a reliable source of income during their retirement years.

For many Canadian seniors, CPP is the primary source of retirement income, complementing other sources like Old Age Security (OAS) and Guaranteed Income Supplement (GIS).

However, CPP and OAS payments have differences: OAS is government-funded, while CPP relies on employment contributions. CPP benefits are based on your contributions, while OAS benefits depend on residency duration. Also, CPP payments start at 60, while OAS starts at 65.

RELATED: How Much Do I Need To Retire In Canada? (2024)

How Much CPP Will I Get?

For 2024, the maximum monthly amount you could receive if you opt to start receiving your CPP pension at age 65 is $1,364.60. The average monthly amount paid for a new retirement pension (at age 65) in October 2023 was $758.32.

CPP payment amounts vary based on individual circumstances. The amount you receive in CPP benefits depends on how much you have contributed, how long you have contributed, and when you start receiving your CPP pension.

So the more money you put into CPP while working, the more you’ll get back when you retire. If you pay into CPP for longer, you will get higher payments when you retire.

However, there are rules and limits to how much you can contribute, and the maximum allowable contribution varies annually based on your employment type.

For 2024, the maximum amount an employee can contribute is $3,867.50, and employers are expected to match this amount. If you’re self-employed, the maximum you can contribute is $7,735.00.

To further increase your monthly pension payout, you may decide to wait until you’re 70 years old to start getting your pension instead of starting early. If you start earlier, your pension will be smaller.

Other factors also impact how much CPP payment you’ll eventually be approved for, and they are linked to the primary factors we discussed earlier. These factors include:

• Whether or not you are working while receiving the CPP Retirement Pension.
• Whether or not you are making contributions after age 65.
• Whether or not there are periods of low or no salary.
• Whether or not you have taken time off to raise your children.
• Whether or not you have stayed off work because of a disability.
• Whether or not you are sharing your pension with anyone.
• Whether or not you have gone through a divorce or separation.

RELATED: AISH Payment Dates 2024: Benefits, Eligibility and Application

Who is Eligible for CPP?

To qualify for the CPP payments, you must be at least 60 years old and have made at least one valid contribution to the CPP.

Valid contributions may come from your work in Canada or from receiving credits from a former spouse or former common-law partner at the end of the relationship.

The easiest way to check your contribution status is to look at your payslip, T4, or notice of assessment for any information on CPP deduction.

Meanwhile, if you have been an employee at a Canadian business, it is reasonable to assume you have made contributions at least once.

I am making this huge assumption because it is a fact that Canadian employers have the duty and responsibility to make deductions and remit them to the government.

How To Apply for Canada Pension Plan

The CPP application process is very easy and straightforward. You must apply for the Canada Pension benefit in advance, as it is not automatic. However, to complete your CPP application, you must be sure you are eligible for the CPP retirement pension.

So if you’re sure you’re qualified for the CPP payment, the first thing to do is decide when you want your pension to start.

You can choose to start receiving your pension as soon as you qualify, start receiving your pension at age 65 (your pension will start the month after your 65th birthday), or start receiving your pension at a specific date that you choose.

After identifying when you want to start receiving your CPP Payment, you can then:

• Log in to your My Service Canada Account (MSCA) or register.
• Use the personal access code to complete your registration.

You will receive a mail notification within 7 to 14 days of your application.

You can also apply for the CPP payment through paper. All you need is to download the application form and fill it out. After that, mail it to the CRA or submit it to the Service Canada office.

When you’re applying on paper, it may take up to 120 days to get an approval notification. However, it could take longer if there’s missing information in your application.

What is the Maximum CPP Benefit for 2024?

In 2024, the maximum monthly CPP benefit in Canada is $1,364.60, which adds up to $15,678.84 per year.

To get this maximum amount, you must have contributed to the CPP for at least 39 years between the ages of 18 and 65, and during those 39 years, you should have made the maximum CPP contributions based on the Yearly Annual Pensionable Earnings (YMPE) set by the Canada Revenue Agency (CRA). 

Here are the average and maximum CPP payments for 2024. Keep in mind that it changes every year:

Source: Canada.ca

How is CPP Calculated?

Calculating CPP contributions is notably simpler than determining the CPP benefits you’ll receive in retirement. You can use the Canada Pension calculator to figure out your CPP pension benefits.

To calculate your Canada Pension Plan (CPP) benefits, determine the number of contributory months by counting the months you contributed to the CPP from the month after turning 18 until the month before your planned retirement.

Next, obtain your pensionable earnings for each year from your statement of contributions and divide them by that year’s maximum pensionable earnings to adjust for inflation.

Then, multiply that amount by the average maximum pensionable earnings over the five years leading up to the year you intend to start receiving CPP benefits. This will bring your average earnings up to a modern-day value.

Finally, add up all the annual adjusted pensionable earnings to find your average annual earnings, which will be the basis for determining your CPP benefits.

On the other hand, to manually calculate CPP contributions, first, you need to calculate the basic pay-period exemption by dividing the basic yearly exemption (e.g., $3,500 for 2022) by the number of pay periods in the year.

Next, you must determine the total pensionable income for the specific pay period by adding your gross pay, including any taxable benefits and allowances. After that, you can deduct the basic pay period exemption from the total pensionable income.

The resulting amount is then multiplied by the current year’s CPP contribution rate (e.g., 5.70% for 2022), ensuring it doesn’t exceed the maximum for the year. Lastly, your employer must match your CPP contributions, multiplying the calculated contribution amount by 2.

For example, let’s apply these steps to Justine, who earns $900 monthly as her gross pay and receives $50 in taxable benefits. The 2024’s basic yearly exemption is $3,500, and the CPP contribution rate is 5.95%.

• Step 1: Basic pay-period exemption = $3,500 / 12 months (assuming monthly pay) = $291.67
• Step 2: Total pensionable income = $900 (gross pay) + $50 (taxable benefits) = $950
• Step 3: $950 (total pensionable income) – $291.67 (basic pay-period exemption) = $658.33
• Step 4: CPP contribution amount = $658.33 (result from Step 3) * 5.95% (CPP contribution rate for 2022) = $39.17
• Step 5: Employer’s CPP contribution = $39.17 (employee’s CPP contribution) * 2 = $78.34

So, for Justine’s monthly pay of $900 and $50 in benefits, both she and her employer would contribute $39.17 each to the CPP for a total monthly CPP contribution of $78.34.

CPP Payment Increase 2024 (CPP Enhancements)

CPP contribution rates and CPP benefits are not fixed.  Instead, they gradually increase annually. These increments help individuals and families save more for retirement and earn more CPP benefits in retirement. This is known as CPP enhancement. 

For the changes in 2022 to 2023, the employer and employee contribution rate increased from 5.45% to 5.70%. The CPP contribution rate for the self-employed increased from 10.90% to 11.40%. There has been no recent increase in 2024.

Is CPP Taxable?

Yes, your CPP retirement pension is considered income and is subject to taxation. It’s important to note that taxes are not automatically deducted from your CPP payments. You have the option to request federal income tax deductions from your monthly payments through two methods:

• Signing into your My Service Canada Account
• Completing the Request for Voluntary Federal Income Tax Deductions CPP/OAS (ISP3520CPP) form and either mailing it to CRA or dropping it off at a Service Canada office.

If you choose not to request monthly tax deductions, you may be required to pay your income tax on a quarterly basis. For additional information, please contact the Canada Revenue Agency (CRA) Tax Services Office.

When Does CPP Come Out This Month?

The CPP date for October 2024 is October 29, 2024. Eligible seniors can expect to receive their CPP deposits on the CPP scheduled dates.

Do You Get CPP If You Never Worked?

No, you cannot receive CPP benefits if you have never worked. To get CPP benefits on the CPP pension dates in Canada, you must have worked in Canada for a period of time and have made at least one qualifying contribution to the CPP/QPP.

Why did I Receive An Additional CPP Payment?

The Canada Revenue Agency (CRA) determines the increased benefit payment based on the amount and duration of your contributions to the CPP enhancement.

If you apply after January 1, 2019, the enhanced amount will be incorporated into your monthly CPP benefit. If you are eligible, this may also encompass a small retroactive amount from the disability drop-in provision and/or the child-rearing drop-in provision.

How Long Does It Take To Receive CPP After Applying?

For online applications, it typically takes about 7 to 28 days. If you submit your application by mail or in person to a Service Canada Centre, the processing time extends to approximately 120 days.

How Much Can I Earn While Collecting CPP And OAS?

As of 2024, new beneficiaries receiving CPP at 65 are eligible for a maximum monthly payout of $1,306.57.

For individuals aged 75 and over, the maximum monthly OAS payment is $778.45. If you fall within the age range of 64 to 74, the maximum monthly OAS payment is $707.68.

Why You Likely Won’t Get The Maximum CPP Retirement Benefit?

Not everyone qualifies for the full CPP maximum benefit amount. You can log in to MSCA Canada to review estimates of the CPP benefits you are entitled to.

The amount of CPP benefits you receive is determined by several factors, including the age at which you choose to start your pension, the duration and extent of your contributions to the CPP, and your average earnings over your working years.

How much CPP Will I Get at 60?

You can expect to get $770 per month from CPP if you retire this year at 60, having worked your entire adult life prior to this year.

Other CPP Benefits You May Qualify For

CPP provide additional benefits besides the monthly retirement pension. They have expanded to provide the following additional benefits:

1. Post-Retirement Pension

The CPP post-retirement pension benefits those who keep making CPP contributions under the age of 70 while working.

Every CPP contribution you make annually adds to your CPP post-retirement benefits.

2. CPP Disability Pension (CPP Disability Payments)

When you turn 65, the CRA will automatically change your CPP disability pension payments to CPP retirement pension.

This benefit is tailored to those suffering a severe and prolonged disability and has made enough contributions.

3. Children’s Benefit

This benefit is for dependent children who receive a CPP disability benefit and deceased CPP contributors. However, the children must be under 18 to 25 years and enrol in full-time school.

4. CPP Survivor’s Pension

This survivor’s pension offers crucial financial support to eligible spouses or partners after the death of the CPP contributor, ensuring their well-being and financial security during difficult times.

Currently, the maximum CPP survivor’s pension is $707.95 for those under 65 years and $783.94 for those aged 65 and older. On average, the monthly amounts received are $480.52 and $313.59, respectively.

5. Death Benefit

The CPP death benefit is a one-time payment provided to the estate or beneficiary of CPP contributors.

Note: The above additional CPP benefits are not automatic. You need to apply in most cases.

Final Thoughts on CPP Payment Dates 2024

Are you eligible for the Canada pension dates in 2024? If so, consider applying to commence receiving your payments.

While you have the option to start at any age above 60, it may be more advantageous to begin receiving your CPP at 65 or later. Doing so will result in a higher rate, translating to increased income.

Consistent CPP contributions can also unlock additional benefits for you. Keep in mind that CPP payment dates are not fixed; they are subject to change.

Stay informed about any adjustments to Canada pension payment dates by subscribing to our newsletter. This way, you’ll always be up-to-date with the latest information.

FAQs on CPP Payment Dates 2024

What Is The Best Age To Collect CPP Payments?

You can start collecting CPP at the age of 60. However, starting early would result in a permanent loss of up to 36% of your pension. If you start collecting CPP payments before age 65, it will attract a monthly deduction of 0.6%. That is a total annual deduction of 7.2%.

In contrast, if you wait until the age of 70 to begin collecting CPP, your payments will be permanently boosted by 0.7% monthly because every year after you turn 65, you have an annual  8.4% increase. 

When to start collecting the CPP payments depends on your situation and needs, but if your goal is to maximise your CCP payments, wait till 70. But in any case, try to wait till you are at least 65.

When is CPP Paid This Month?

CPP deposit dates usually fall on every month’s third to last business days. Watch out for your CPP payments, as you can expect to receive them within 1-2 business days

When Does CPP Get Deposited?

Canadian Seniors can expect to receive their CPP payments by mail or direct deposits from 1-2 business days after the scheduled CPP payment dates.

Can I Collect CPP and Other Sources of Retirement Funds?

Yes, CPP is just one of many retirement supplements you can get as a Canadian. As you meet the qualifications, there is no limit to how many retirement benefits you can receive.

Moreover, it’s always a good idea to supplement your CPP with other sources of retirement funds such as TFSA and RRSP. This will help you save more for your retirement.

What Happens to CPP After the Death of a Contributor?

When a CPP contributor dies, his/her dependent children (under 18 to 25 years) who are enrolled in full-time school will receive CPP children benefits, and the spouse of the deceased CPP contributor will receive the CPP survivor’s pension. 

The amount the surviving spouse gets depends on his/her age and the amount the deceased CPP contributor has contributed.

Can I Rely on the CPP For All My Retirement Expenses?

The CPP payment may not be enough to cover your retirement expenses. Consequently, you can’t rely on it as the only source of your retirement funds. Thus, it is important to supplement your CPP using retirement accounts such as TFSA and RRSP.

Can You Refuse to Pay CPP?

Before 65- No. But you can refuse to pay CPP when you reach age 65. But your contributions will end once you reach 70 years… even if you’re still working. However, you can revoke the election.

Does CPP Pay for Funeral Expenses?

Yes. The estate or beneficiary of a deceased CPP contributor may be eligible for a $2,500 death benefit. However the CPP contributor must make enough contributions before they pass away.

Can I Receive the CPP Payment for My Deceased Husband?

Yes, you can receive the CPP payment of your deceased husband by applying for the CPP survivor’s pension. Your age, the amount contributed, and your pension benefits will determine how much you get.

Is CPP Alone Enough for Retirement?

CPP is just a supplement to your primary income. Because it doesn’t replace your primary income, it may not be enough to cover your retirement expenses. Thus, you should consider diversifying your income and investing in retirement accounts such as tax-free savings accounts (TFSA) and registered retirement savings plans (RRSP). 

When Should I Apply for the CPP Payments?

You can apply for the CPP as early as age 60. But the standard age is 65. Applying at the age of 70 is considered late.

What is the Best Age to Collect CPP?

Sixty-five years and above is often considered the best age to collect the CPP. The idea is that the more you wait, the more CPP you receive. However, to make the best decision, consult a financial advisor who will guide you on the time that’s the best time to start.

What Happens to CPP When You Move Abroad?

Because of a social security agreement, you may still receive your CPP benefits when you move abroad. However, different countries have different social security agreements. You may need to confirm the agreement that applies to you. A government representative can assist you in confirming the social security agreement that applies to you.