The Canadian government offers a pension benefit through the Canada Pension Plan to all workers who have been contributing to the retirement plan at the time of employment. This plan is dedicated to contributors, their families, survivors, and individuals with disabilities, ensuring that everyone receives the support they need to survive the rising inflation.
The monthly benefit under the CPP is a great support to all the people who contributed, except for the Quebec province as they have their own plan. The CPP beneficiaries are not anticipating their May 2025 payout, which is scheduled for 28 May 2025.
The CPP payout comes from the contributions made by self-employed individuals, the working class, and employers, and from the CPP investment profit. The government has made some changes to the CPP from January 2025 that will not impact the contribution rates.
| Pension Benefit | Canada Pension Plan |
| Who qualifies? | Canadians who have contributed while working in the plan and have reached the age of 60 years |
| Max. Payout | $1433 (retirement) |
| Other benefits | Post retirement, disability benefit, and survivor’s benefit |
| Contribution rate 2025 | 5.95% |
| Employee and employer maximum contribution | $4034.10 |
| Self-employed contribution | $8068.20 |
| Exemption amount | $3500 |
| Maxi. Pensionable Earnings | $71,300 |
| May Payment Date | 28 May 2025 |
| Official website | https://www.canada.ca/ |
Who can receive it?
The Canada Pension Plan is generally a program initiated to help people secure a retirement income, however, the plan offers many benefits. So, the Canadians who meet the following conditions can get the retirement pension under CPP:
- You should have reached the 60 years age of and made at least one valid contribution to the retirement plan.
- If you work or live in countries that have a social security agreement with Canada, you can avail yourself of the retirement plan benefit and receive the payment.
- If you have worked and resided in Quebec, you can qualify for the CPP if you fit certain criteria.
For other CPP benefits:
- Post-retirement benefit: If the contributor is working while receiving the CPP, they can be eligible for the post-retirement benefit till the age of 70, as they contribute to the CPP.
- Disability Benefit: If your age is under 65, contributed to CPP, and you are suffering from physical or mental disability for a long time, which may result in death or prevent you from working, you can get the disability benefit under CPP.
- Survivor benefit: People who were legally married to or a common-law partner of the CPP contributor may qualify for the CPP survivor’s benefit.
Payout Amount
The Canadian government has increased the CPP pension amount for retirees from January 2025 based on inflation, as they review it every three years. The CPP pensioner, survivors, or disabled people receive the payout based on the circumstances, contributions, and their earnings, which may vary the payout for every beneficiary.
Recipients can check the following CPP pension amount to calculate their payout based on the benefit they qualify for:
- The maximum retirement pension under CPP will be available to a pensioner at the age of 65 of up to $1433 per month.
- The contributors who qualify for the post-retirement benefit receive the post benefit, which is 2.5% of the retirement pension, so from January 2025, it is $47.83 for people at the age of 65.
- The CPP beneficiaries who qualify for the disability benefit can expect to receive the maximum payout of $1673.24, with a post-retirement benefit up to $598.49; for the children, it is $301.77.
- The Survivors CPP benefit payout depends on the age of the survivor and the contribution made by the contributor, and the period of contribution. For instance, a survivor aged 65 or above can receive 60% of the pension if they do not qualify for the retirement pension. People who have already received the CPP pension may get the survivor’s benefit in a single monthly payment.
Contribution Limit
The Canadian government has revamped the contribution rates for the Canada Pension Plan, which the contributors should know, such as:
- For the Canada Pension Plan (CPP), the highest amount that both employees and employers can contribute annually is $4,034.10 ($8068.20 for self-employed individuals). This is based on a contribution rate of 5.95% applied to pensionable earnings for both parties.
- You can contribute to the CPP if you are over 18 and earning above $3,500 annually, but you cannot contribute over the limit. The limit for each year is adjusted, and for 2025, it is increased to $71,300.
How to apply?
If you have reached the age of 60 years or above and wish to claim your retirement income or other benefits, you can apply online for CPP payout in the following steps:
- You can create an account on My Service Canada Account (MSCA) and log in using your provincial sign-in key or another one.
- Next, select the CPP apply link for the retirement pension or other benefit.
- Next, fill out the application, input all the details related to your income, contribution, and so all.
- Once you complete the CPP application, remember to save the application and expect the response from the agency in 28 days.
The CPP is one of the strongest parts of the Canadian retirement system that helps employees or employers, or self-employed people save money for retirement, so mark the payout date for the next payment.