Starting July 2025, millions of Canadian retirees will enjoy an increase in their monthly retirement income due to automatic cost-of-living adjustments made to three major federal programs: the Canada Pension Plan (CPP), Old Age Security (OAS), and the Guaranteed Income Supplement (GIS). These updates are designed to help seniors better manage the rising cost of living.
With the CPP retirement pension now reaching a maximum of $1,433/month and a 1.0% increase in OAS payments, seniors can expect more robust support as the year progresses. In addition, GIS payments have also risen, providing extra financial relief to low-income seniors.
Why Are Federal Retirement Benefits Increasing?
These increases are part of a broader plan that includes both program enhancements and inflation-based adjustments using the Consumer Price Index (CPI) as a benchmark.
CPP Enhancement Reaches Full Implementation
As of 2025, the CPP enhancement program has been fully rolled out, improving the income replacement rate from 25% to 33.33% for Canadians with a full contribution record. This results in:
- A maximum monthly CPP benefit of $1,433
- Expanded contribution requirements to cover higher income levels
- A two-tiered contribution structure to increase future pension income
Quarterly OAS and GIS Adjustments Based on CPI
The OAS program is updated every quarter based on the CPI. For July to September 2025, recipients will receive a 1.0% increase, bringing the annual adjustment to 2.3%. Since GIS is linked to OAS, its rates have also gone up.
Updated OAS and GIS Payment Rates (Effective July 2025)
| Age Group | Monthly OAS Payment |
|---|---|
| 65 to 74 years | $734.95 |
| 75 years and older | $808.45 |
For GIS (available to low-income seniors):
- Single recipients: Up to $1,097.75/month
These increases are automatic and do not require any action from eligible individuals.
Who Qualifies for the CPP, OAS, and GIS Increases?
Canada Pension Plan (CPP)
To receive the maximum CPP amount, individuals must:
- Have made maximum contributions consistently
- Contributed for 39–40 years after 2019 under the enhanced program
Most Canadians receive an average monthly CPP of around $900, depending on their work and contribution history.
Old Age Security (OAS)
Canadians aged 65 or older who have lived in Canada for at least 10 years after turning 18 are eligible for partial OAS. A full benefit requires 40 years of Canadian residency post-age 18.
Guaranteed Income Supplement (GIS)
The GIS is available to seniors with little or no other income aside from OAS. In July 2025, the maximum for singles is $1,097.75/month. Couples may receive slightly lower individual payments but higher combined benefits.
Combined Federal Retirement Benefits – 2025 Maximum Estimates
| Benefit Type | Estimated Monthly Amount (Max) |
|---|---|
| CPP | $1,433 |
| OAS (75+) | $808.45 |
| GIS (Single) | $1,097.75 |
| Total | $2,241–$2,403 |
Note: Actual payments may vary based on age, contribution history, and income eligibility.
Payment Dates for July to December 2025
| Month | CPP Payment Date | OAS + GIS Payment Date |
|---|---|---|
| July | July 29, 2025 | July 27, 2025 |
| August | August 27, 2025 | August 27, 2025 |
| September | September 25, 2025 | September 25, 2025 |
| October | October 29, 2025 | October 29, 2025 |
| November | November 26, 2025 | November 26, 2025 |
| December | December 22, 2025 | December 22, 2025 |
All payments are automatically deposited into the recipient’s registered bank account.
Do You Need to Reapply for These Adjustments?
No action is required. The increases are applied automatically for eligible CPP, OAS, and GIS recipients. However, seniors should:
- Check bank statements or their online Service Canada account
- Call Service Canada at 1‑800‑277‑9914 if payment issues occur
How to Ensure You Receive the Right Amount
To avoid missing out on your full entitlements:
- Keep your Service Canada profile up to date
- File your income tax each year—even with low income
- Maintain updated residency records
- Apply for GIS if eligible based on income thresholds
Why These Mid-Year Adjustments Matter
With the cost of living, housing, and healthcare continuing to rise, these mid-year adjustments ensure that older Canadians have the financial support needed to live with dignity and security. They reflect the Canadian government’s ongoing commitment to protecting retirees against economic volatility through indexed and predictable benefit systems.
Conclusion
The July 2025 increases in CPP, OAS, and GIS provide a much-needed financial uplift for Canadian seniors, especially amid persistent inflation and rising expenses. These adjustments enhance retirees’ ability to cover basic living costs and promote long-term stability. With automatic implementation, the process is seamless—requiring no additional action from recipients—making it easier for seniors to focus on what matters most: living well in retirement.
Frequently Asked Questions
What is the new maximum CPP pension amount in 2025?
The maximum CPP retirement pension for 2025 is $1,433 per month, available to those with a complete contribution history under the enhancement rules.
Do I need to apply for the updated OAS and GIS amounts?
No. All OAS and GIS increases are applied automatically. There’s no need to reapply if you’re already receiving these benefits.
When will the next CPP, OAS, and GIS payments be made?
The next round of payments begins in July 2025, with deposits made toward the end of each month as per the official schedule.
Who qualifies for the GIS top-up in 2025?
Low-income seniors who already receive OAS and have minimal additional income may qualify for the GIS, which now pays up to $1,097.75/month for single individuals.
How do I check if I’m receiving the correct benefit amount?
You can review your payments through your bank statements or by logging into your My Service Canada Account. Contact Service Canada if discrepancies occur.