Canada’s public retirement support just got a major boost in 2025. If you’re 60 or older and have contributed consistently to the Canada Pension Plan (CPP), you might qualify for monthly payments up to $1,560. With costs of living rising, this increase offers much‑needed relief to retirees and soon‑to‑be retirees. But what exactly does this number mean for you? In this article, we’ll walk through timing, eligibility, application process, and how you can maximize your benefit.
The CPP monthly increase refers to the new maximum payable amount of $1,560 per month in 2025 for those with long-term maximum contributions. We’ll cover who can expect this money, when it arrives, and what steps to take to claim it. You’ll find a clear overview table, section breakdowns from the reference, FAQs, and a friendly conclusion.
CPP monthly increase
The CPP monthly increase gives eligible seniors—aged 60–70—a chance to receive up to $1,560 each month. This rise reflects recent reforms aimed at improving retirement income. With contribution rates and pensionable earnings caps gradually raised since 2019, the CPP fund is better equipped to deliver higher payouts to those who’ve paid into the system for years.
Overview Table
| Feature | Details |
| Maximum Monthly Payment | Up to $1,560 (2025) |
| Eligible Age Range | 60 to 70 years |
| Contribution Requirement | Consistent contributions at or near maximum pensionable earnings |
| First Payment Schedule | Third‑last business day of each month |
| Application Method | Online via My Service Canada or paper form |
| Official Source | Canada Pension Plan portal via Canada.ca |
Overview
CPP is Canada’s main public retirement income source, funded through payroll deductions. Both employees and employers contribute. In 2025, the maximum monthly pension rises to $1,560, rewarding long-term contributors in retirement.
Definition
The Canada Pension Plan (CPP) is a government-administered program funded by mandatory contributions from workers and employers. Upon retirement, the CPP pays out a monthly pension based on your contribution history. Consistent maximum contributions translate into a higher eventual payout.
Increase
The increase to $1,560 per month is part of a long-term enhancement plan beginning in 2019. It includes:
- Higher contribution rates from both workers and employers
- Raised earnings cap—up to $68,500 for 2025
- Post-retirement contribution option to increase pension further
These targeted reforms aim to strengthen retirement income for senior Canadians now and in the future.
Dates
CPP payments are issued every month, on the third-last business day. In 2025, payment dates include:
- January 29
- February 26
- March 27
- April 26
- May 29
- June 27
- …and so on throughout the year
Set up direct deposit to guarantee you receive funds promptly each month.
Eligibility
Not all seniors will receive the full $1,560. Your payout depends on:
- Age: You must be between 60–70
- Contribution history: Maximum or close to maximum contributions, year after year
- Pensionable earnings: The closer you were to the $68,500 cap, the higher your benefit
If you began early, your payout may be lower unless you delayed retirement or contributed post-retirement.
Example
For instance, if someone:
- Turns 65 in 2025
- Has contributed at max levels for 39 out of 40 working years
They could qualify for the full $1,560 monthly pension. But if they start at age 60, expect a 36% reduction—bringing the monthly sum below $1,000.
Years of Contributions
CPP uses your “best‑earning years” to calculate benefits. To hit the $1,560 max, you must have consistent, high-level contributions across many years. Any gaps or lower-income years will bring the total down proportionally.
Application
To begin receiving your CPP:
Online: Create or log in to your My Service Canada account, complete the CPP form, and submit.
Paper: Download the form from the Service Canada website, fill it out, and mail it in.
Apply six months before you want payments to begin—delays can happen, so plan ahead to avoid income gaps.
FAQs
What is the max CPP payment in 2025?
Up to $1,560 monthly for qualified seniors.
When are CPP payments made?
On the third-last business day of each month.
How do I apply for CPP?
You can apply online via My Service Canada or by mailing a paper application.
Is CPP taxable income?
Yes, CPP monthly payments are considered taxable income.
Can I increase CPP after retirement?
Yes—if you continue working and contribute post-retirement, your pension can increase.
Final Thought
The CPP monthly increase to $1,560 is a significant gain for well-prepared retirees in 2025. By contributing consistently throughout your career and timing your application wisely, you can secure a stronger monthly retirement income. Have questions about eligibility or timing? Drop a comment below or share this with someone heading into retirement. Want more tips on maximizing your pension? Explore our finance and retirement planning guides today.
