Starting July 2025, several key benefits and pension rates in Canada are set to increase, providing financial relief to seniors, families, and individuals with disabilities.
These adjustments, influenced by inflation and policy changes, aim to support Canadians in maintaining their standard of living.
This article outlines the upcoming changes, eligibility criteria, and updated amounts for various programs.
1. Old Age Security (OAS) Pension
The Old Age Security pension is a monthly payment available to most Canadians aged 65 and older.
Key Updates:
- July 2025 Adjustment: OAS payments will increase by 1.0% for the July to September 2025 quarter, resulting in a 2.3% increase over the past year.
- Maximum Monthly Amounts:
- Aged 65 to 74: $727.67
- Aged 75 and over: $800.44
- Eligibility: Must be a Canadian citizen or permanent resident, aged 65 or older, and have resided in Canada for at least 10 years after turning 18.
2. Guaranteed Income Supplement (GIS)
The Guaranteed Income Supplement provides additional financial support to low-income seniors receiving the OAS pension.
Key Updates:
- July 2025 Adjustment: GIS amounts will increase in line with the 1.0% OAS adjustment.
- Maximum Monthly Amounts:
- Single, Widowed, or Divorced: $1,086.88
- Married/Common-Law (both receiving full OAS): $654.23
- Eligibility: Must be receiving the OAS pension and have a low income.
3. Canada Child Benefit (CCB)
The Canada Child Benefit is a tax-free monthly payment to eligible families to help with the cost of raising children.
Key Updates:
- 2025–26 Benefit Year: Maximum annual amounts are increasing to:
- Children under 6: $7,997 ($666.41/month)
- Children aged 6 to 17: $6,748 ($562.33/month)
- Eligibility: Families must meet income thresholds and file a tax return.
4. Child Disability Benefit (CDB)
The Child Disability Benefit is an additional payment to families caring for a child with a severe and prolonged disability.
Key Updates:
- 2025–26 Benefit Year: Maximum annual amount increases to $3,411 ($284.25/month).
- Eligibility: Must be approved for the Disability Tax Credit and meet income requirements.
5. Canada Disability Benefit (CDB)
The Canada Disability Benefit is a new program aimed at providing direct financial support to low-income working-age Canadians with disabilities.
Key Updates:
- Maximum Annual Amount: $2,400 ($200/month).
- Eligibility: Must be between 18 and 64 years old, approved for the Disability Tax Credit, and meet income requirements.
6. Canada Pension Plan (CPP)
The Canada Pension Plan provides retirement, disability, and survivor benefits to contributors and their families.
Key Updates:
- Maximum Monthly Amount at Age 65: $1,433.00.
- Contribution Rates:
- Employee/Employer: 5.95% on earnings between $3,500 and $71,300.
- Self-Employed: 11.90% on earnings between $3,500 and $71,300.
- Additional Contributions: 4.0% on earnings between $71,300 and $81,200.
- Eligibility: Must be over 18, work in Canada, and earn more than $3,500 annually.
7. Public Service Pensions
Public service pensions are adjusted annually to reflect changes in the cost of living.
Key Updates:
- 2025 Indexing Rate: 2.7% increase applied to pensions.
- Eligibility: Must be a retired public servant with a pension plan.
Summary
| Program | Maximum Monthly Amount | Eligibility Criteria |
|---|---|---|
| OAS (65–74) | $727.67 | Aged 65–74, Canadian citizen/permanent resident, 10+ years in Canada post-18 |
| OAS (75+) | $800.44 | Aged 75+, Canadian citizen/permanent resident, 10+ years in Canada post-18 |
| GIS | $1,086.88 | Receiving OAS, low income |
| CCB (Under 6) | $666.41 | Eligible families, income thresholds apply |
| CCB (6–17) | $562.33 | Eligible families, income thresholds apply |
| CDB | $284.25 | Approved for Disability Tax Credit, low income |
| Canada Disability Benefit | $200.00 | Aged 18–64, approved for Disability Tax Credit, low income |
| CPP (Age 65) | $1,433.00 | Over 18, working in Canada, earn >$3,500 annually |
| Public Service Pension | Varies | Retired public servant with pension plan |
The upcoming increases in Canadian benefits and pension rates for July 2025 are designed to support seniors, families, and individuals with disabilities in maintaining their financial well-being.
It’s essential to understand the eligibility criteria and application processes to ensure you receive the full benefits you’re entitled to. Stay informed and plan accordingly to make the most of these changes.
FAQs
How do I apply for the Canada Disability Benefit?
If you’re between 18 and 64, approved for the Disability Tax Credit, and meet income requirements, you can apply through your My Service Canada Account or by contacting Service Canada.
Will my OAS payments stop if I move abroad?
OAS payments may stop if you leave Canada for more than six months unless you have lived in Canada for at least 20 years after turning 18 or have a social security agreement with the country you’re moving to.
How can I maximize my CPP benefits?
To maximize your CPP benefits, aim to contribute for at least 39 years and consider delaying your retirement until age 70 to receive the maximum monthly amount.