The Canada Pension Plan (CPP) is the most popular retirement plan in Canada, and is available to both public and private sector workers as well as self-employed individuals who pay into the plan. CPP payments are made via direct deposit on the third-to-last business day of each month.
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What Is CPP In Canada?
The Canada Pension Plan (CPP) is one of two primary social insurance programs in Canada, the other being Old Age Security (OAS). Established in 1965, the CPP has offered financial support to tens of millions of Canadian seniors over the years.
Today, the investment board that oversees the fund's holdings (the CPPIB) controls more than $500 billion in assets, making it one of the largest pension funds in the world. They've achieved a return of 11.7% over the past 5 years, which is impressive.
To be eligible to receive CPP, you must be at least 60 years old and have made at least one payment to the program during your working life. If you live in Quebec, you'll pay into the Quebec Pension Plan (QPP), not the CPP.
Most of this article is accurate for both the CPP and the QPP, though, so for the sake of brevity, I’ll only mention CPP.
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2023 CPP Payment Dates Schedule
The calendar day for CPP payments varies from month to month, but they generally fall on the third-to-last business day of each month. CPP payment dates also coincide with OAS payment dates, so if you're receiving both, you'll get both payments on the same day.
The CPP payment dates for 2023 are:
- September 27, 2023
- October 27, 2023
- November 28, 2023
- December 20, 2023
On top of the CPP retirement pension, other CPP benefits include:
- Post-retirement pension (if you both contribute to and receive CPP between the ages of 60-70)
- Disability benefit (if you have a serious disability)
- Survivor's pension (paid to the spouses of deceased CPP contributors)
- Children's benefit (paid to the children of deceased CPP contributors)
- Death benefit (a one-time payment made to the estate of deceased CPP contributors)
All of these benefits are paid on the dates above.
Note that the GST/HST credit is not paid out on the same dates as CPP and OAS.
When Is CPP Paid In September 2023?
CPP payments will be made on September 27, 2023. If you haven't received your CPP payment within 1 or 2 business days of September 27, contact your bank and/or Service Canada.
How Much CPP Will I Receive?
The formula for calculating exactly how much CPP you will get is complex and requires knowing exactly how much you earned every year that you contributed to the program.
Here’s a simpler way to think about it: in percentage terms, you’ll receive back approximately what you contributed.
Here’s what I mean. Every year the government of Canada defines a Yearly Maximum Pensionable Earnings (YMPE), which is the maximum amount of income a person needs to make CPP contributions on.
For 2023, the YMPE is $64,900, but back in 2000 it was just $37,600 (see the full list of YMPE amounts here).
$3,500 gets deducted from the YMPE every year as an exemption, which means the maximum contributory earnings for 2023 is $61,400.
- If you consistently earn around 60% of the YMPE, you can expect to receive about 60% of the maximum CPP down the road.
- If you consistently earn 90% of the YMPE, you can expect to receive about 90% of the maximum CPP.
Here's a table showing the average and maximum annual CPP benefits for 2023, last updated by the government of Canada in January 2023:
Here are some quick insights from the table above
- Average CPP retirement pension benefit: $779.32/month
- Maximum CPP retirement pension benefit: $1,253.59/month
- Average CPP disability benefit: $1,064.80/month
- Maximum CPP disability benefit: $1,457.45/month
- Maximum CPP death benefit: $2,500
As I mentioned above, you can get a more specific estimate of your future CPP earnings by using your average salary over your CPP contributing years as a proxy.
I’ve shown that in the table below, though keep in mind that these are just approximations since every person receives a different amount.
| Average Salary During CPP Contributing Years (Unadjusted For Inflation) | Approximate Monthly CPP Income In 2023 |
| Less than $20,000 | $417 or less |
| $20,000 – $30,000 | $522 |
| $30,000 – $40,000 | $731 |
| $40,000 – $50,000 | $941 |
| $50,000 – $60,000 | $1,149 |
| More than $60,000 | $1,253.59 |
Note that this table assumes you contributed to CPP for a full 39 years (the maximum contribution length).
For example, if you contributed for fewer years, divide the number of years you contributed by 39 (e.g. 30/39) and multiply that by the amount in the second column.
How To Maximize Your CPP
That’s why we’ve developed How To Maximize Your CPP: A Practical Guide For Canadians. In this in-depth, hands-on guide, you’ll learn:
-
A proven step-by-step process for maximizing your CPP earnings today and in the future, no matter your situation.
-
The exact steps you must take to maximize your CPP if you’re an immigrant, widowed, disabled, or in any other unique situation.
-
The 3 major mistakes Canadians make that cost them thousands of dollars in CPP (and how to avoid them once and for all).
CPP Increases In 2023
In January 2023, CPP benefits were increased by 6.5%, calculated as an average of the preceding 12 months' Consumer Price Index. This number may be higher for 2024, given the high rate of inflation we've been experiencing since 2021.
On the contribution side, the federal government decided several years ago that every year from 2018 until 2023, CPP rates would slowly increase both on the employer and on the employee side.
This table (taken from midway down this page) shows the exact increases each year:
| Year | Contribution Rate (Employers & Employees) | Combined Contribution Rate |
| 2018 | 4.95% | 9.90% |
| 2019 | 5.10% | 10.20% |
| 2020 | 5.25% | 10.50% |
| 2021 | 5.45% | 10.90% |
| 2022 | 5.70% | 11.40% |
| 2023 and beyond | 5.95% | 11.90% |
As you can see, in 2018 both employers and employees were paying 5.25% (10.50% collectively), but in 2023 and beyond, they will be paying 5.95% apiece (11.90% collectively). In 2023, that figure is 5.70% each (11.40% collectively).
It's worth noting that the Quebec Pension Plan went through a similar rate increase between 2012-2018, raising contribution rates from 9.9% to 10.8% over that span.
These higher contribution rates will be balanced by greater CPP payouts down the road as the government of Canada seeks to offer greater financial support for our aging population.
The Bottom Line
The Canada Pension Plan (CPP) is Canada's most popular retirement plan. It's available to both public and private sector workers as well as self-employed individuals who pay into the plan. CPP payments are made via direct deposit on the third-to-last business day of each month.
That said, CPP payments aren't usually enough to cover all of a Canadian retiree's living expenses. If you live in Canada and want to earn some extra money, check out Canada's best signup bonuses to learn how to earn $60/hour or more. Here are the top three bonuses available today, all of which take 15 minutes or less to secure:
CPP Payment Dates FAQs
What's the maximum CPP benefit for 2023?
The maximum CPP benefit payment is $1,253.59/month for 2023, which is a yearly pension of $15,043. The 2022 maximum monthly CPP was $1,203.75/month, for a yearly pension of $14,445.
The maximum disability benefit payment is $1,457.45/month for 2023, or $17,489.40 annually.
How much did CPP benefits increase in 2023?
CPP benefits are adjusted each January to account for inflation, which is closely tied to CPI (the Consumer Price Index). At the start of January 2023, the amount was increased by 6.5%.
This increase will likely be quite a bit higher for 2023, given the high rate of inflation we've been experiencing since 2021.
How much did the CPP Survivor's Benefit increase in 2023?
For recipients under the age of 65, the average CPP survivor's benefit increased from $443.08 in 2022 to $463.40 in 2023, while the maximum survivor's benefit increased from $650.72 in 2022 to $674.79 in 2023.
For recipients 65 and older, the average CPP survivor's benefit increased from $294.43 in 2022 to $315.48 in 2023, while the maximum survivor's benefit increased from $722.25 in 2022 to $752.15 in 2023.
When does CPP get deposited?
CPP (and OAS) payments are made via direct deposit on the third-to-last business day of each month. It will normally show up in your bank account under the name “Canada Fed” or something similar.
What are the CPP Disability payment dates in 2023?
The CPP Disability Benefit is paid on the same dates as all other CPP benefits, which you can see at the top of this post.
What is the maximum CPP Benefit for 2023 at age 60?
The maximum CPP benefit at age 60 is $1,253.59/month for 2023, which is a yearly pension of $15,043. In order to qualify for this, you must have contributed to CPP for at least 39 years by the age of 60, which means you've been contributing from the age of 21 or younger.
What's the best age to collect CPP?
The best age to collect CPP depends on a host of things, including how much you've saved, your current and future monthly expenditures, you and your partner's life expectancy, and more.
With that said, there's no best age at which everyone should collect CPP. The right age all depends on you.
Is it better to take CPP at age 60 or 65?
The best age to take CPP depends on your individual financial situation: age 60 is the earliest you can start receiving CPP payments, but if you choose to do so, you'll receive reduced benefits.
If you wait until your 65th birthday, you'll receive full CPP benefits, and if you choose to delay your benefits until you turn 70, you'll earn increased CPP benefits that are even greater than those you receive at 65.
What age do most people take CPP?
Most people take their CPP benefits at age 65, since that's the default age to start receiving it, but that doesn't mean 65 is necessarily the best age for you. The choice of when to start accepting CPP is one you should make consciously after considering things like your future income (if any), family support, and how long beyond 65 you can reasonably expect to live.
Can you start and stop CPP?
Yes, you can cancel your Canada Pension Plan payments if you send a written request to Service Canada within 12 months after you begin receiving CPP. You'll also need to pay back all of the CPP benefits you've received to date.
On the contribution side, it's not possible to stop contributing to CPP until you're 65 years of age.
What is considered low income for seniors in Canada?
Seniors earning less than $29,285 individually or $47,545 per couple are considered low-income seniors in Canada. This makes them eligible for the Old Age Security pension.
How much is CPP per month at 65?
The average monthly CPP payment at age 65 is $779.32 as of 2023. This amount will be different for everyone since it's based on the amount you contributed to CPP over your lifetime.
To get an estimate of your monthly CPP pension payments, log in to your My Service Canada account.
Is CPP taxable income?
Yes, CPP pension payments are counted as taxable income in the eyes of the Canada Revenue Agency, and those taxes are not automatically deducted from your payments.
If you wish to have your federal taxes automatically deducted from your CPP payments before you receive them, you can request that in your My Service Canada account.
How many years do you have to work to get maximum CPP?
Canadian citizens must work (and contribute to Canada Pension Plan) for at least 39 years to receive the maximum CPP benefit payments. The maximum CPP benefit is currently $1,253.59/month ($15,043/year).
You also need to contribute the maximum amount for each of those 39 years, making it quite difficult to get the maximum pension payment.
However, if you earned a good salary throughout your working career, it's very possible to come close to the maximum payment amount.
What's the maximum CPP contribution in 2023?
The maximum CPP contribution in 2023 for employees and employers is $3,499.80. The maximum CPP contribution in 2023 for self-employed individuals is $6,999.60.
Can I work while collecting CPP?
Yes, you can work while receiving CPP, and the amount you receive each month will not be reduced.
On the contrary, if you're still earning while collecting CPP, you can actually increase the amount you receive through the CPP post-retirement benefit.
You can still make contributions to CPP until you reach the age of 70, which may increase the amount you receive from CPP for the rest of your life.
Should I collect CPP while working?
If you haven't already worked for 39 years (to get the maximum CPP benefits), you may want to continue working while you start collecting your Canada Pension Plan payments. This will increase the total amount of CPP you receive, since you'll be contributing a larger amount to the plan, too.
How does retiring early (at age 55) affect CPP?
Retiring early (e.g. at age 55) will reduce the CPP payments you receive later in life, since you're not contributing as much to the plan.
To receive the maximum CPP pension payment, you need to contribute to the plan for 39 years, so if you haven't contributed for 39 years yet, you won't be getting as much as you could.
With that said, you will still receive age-adjusted increases every year to account for an increased cost of living, just like everyone else.
In the rare years that the cost of living declines, CPP payments are not reduced.
Should I stop contributing to CPP after 65?
Once you reach 65 years of age, you can choose whether to continue contributing to CPP or stop contributing. You'll have this choice until you're 70 years old, at which point you will no longer be able to contribute to CPP.
You may want to keep contributing to CPP after 65 if you a) haven't yet contributed to CPP for the maximum of 39 years, and b) expect to still live for a long time, which will make your entire stock of future CPP payments more valuable.
Can CPP benefits be clawed back?
No, CPP payments cannot be clawed back by the Canadian government, even if you have a very high income or a large amount of savings when you start receiving CPP (with a few exceptions). This is different from Old Age Security payments, which are subject to the OAS clawback depending on how much you individually earn.
What happens to my CPP if I leave Canada?
If you leave Canada to live abroad, you still maintain the full right to your CPP payments. That's because CPP is a member-contributed plan, which means you'll always have the right to it regardless of which country you live in.
Of course, just like in Canada, you need to make at least one CPP contribution over your working lifetime to qualify for CPP pension payments.
Depending on the country you live in, your CPP payments may be made in the local currency instead of in Canadian dollars.
How much is GIS in 2023?
The maximum Guaranteed Income Supplement (GIS) monthly payment from April to June 2023 is $968.86. This applies if you’re single, divorced, or widowed.
If your spouse or common-law partner also receives GIS or the Old Age Security pension (OAS), the maximum GIS payment is $583.20 per month.
The Guaranteed Income Supplement is paid on the same dates as CPP.
When are CPP T4s mailed out?
T4A/NR4 tax slips for CPP recipients are made available in your My Service Canada account each year on February 1, assuming you've registered to receive your tax slips online. From your account, you can view and print your T4A/NR4 slips for the current year along with the past 6 years.
If you've registered for online tax slips but prefer to receive a physical copy in the mail as well, you can reactivate the mail option by selecting Tax slip mailing options in your My Service Canada account. Keep in mind that if you change your tax slip preference after the first week of January, the change won't take effect until the following year.
Whether you receive physical copies in the mail or not, you can still access these tax slips online, too.
How To Maximize Your CPP
That’s why we’ve developed How To Maximize Your CPP: A Practical Guide For Canadians. In this in-depth, hands-on guide, you’ll learn:
-
A proven step-by-step process for maximizing your CPP earnings today and in the future, no matter your situation.
-
The exact steps you must take to maximize your CPP if you’re an immigrant, widowed, disabled, or in any other unique situation.
-
The 3 major mistakes Canadians make that cost them thousands of dollars in CPP (and how to avoid them once and for all).
