New CPP Payments To Be Sent Canada-Wide On December 22

Last Updated On 20 December 2025, 9:55 AM EST (Toronto Time)

The Government of Canada has confirmed the distribution of the final Old Age Security and Canada Pension Plan – OAS and CPP payments on December 22, closing out the calendar year for millions of Canadians.

This payment is particularly important because it represents the last CPP and OAS deposits before new indexed benefit increases take effect on January 1, 2026, resetting monthly payment amounts for the year ahead.

CPP and OAS together form the backbone of Canada’s public retirement income system, supporting retirees, people with disabilities, surviving spouses, and long-term contributors.

Newcomers, temporary workers, international students transitioning to permanent residence, and young workers entering the Canadian labour market often underestimate the long-term importance of pension contributions.

Understanding how CPP works, when payments are made, and how benefits grow over time is a key part of financial literacy for anyone building a future in Canada.

This guide explains everything Canadians need to know about the last CPP and OAS payments of December and the 2026 CPP payment dates and increase.

What Is the Canada Pension Plan

The Canada Pension Plan is a national social insurance program designed to provide monthly income during retirement, as well as financial support in cases of disability or death.

CPP is mandatory for most employed and self-employed individuals in Canada, except residents of Quebec, who contribute to the Quebec Pension Plan instead.

Contributions are deducted automatically from employment income, with employers matching employee contributions.

Self-employed individuals contribute both the employee and employer portions through their tax filings.

CPP provides several types of benefits:

Retirement pensions

Disability benefits

Survivor pensions

Children’s benefits

Death benefits

These benefits are earned through contributions and are not dependent on Canadian citizenship status.

What Is Old Age Security and How It Differs From CPP

Old Age Security is a separate federal benefit funded through general tax revenues rather than payroll contributions.

Unlike CPP, OAS eligibility is based on age and residency, not employment history.

Individuals may qualify for full or partial OAS depending on how long they have lived in Canada after age 18.

OAS payments are taxable and may be subject to the recovery tax, commonly known as the OAS clawback, for higher-income seniors.

CPP and OAS are paid on the same monthly schedule, including the December 22 payment.

The final CPP and OAS payments of the year often arrive during a period of increased household spending, including housing costs, utilities, food inflation, and seasonal expenses.

December CPP and OAS Payment Date Confirmed

The final CPP and OAS payments for 2025 will be deposited on December 22.

Payments are issued by Service Canada and deposited directly into recipients’ bank accounts.

If you receive payments by cheque, delivery times may vary depending on postal service schedules.

January 28, 2026

February 25, 2026

March 27, 2026

April 28, 2026

May 27, 2026

June 26, 2026

July 29, 2026

August 27, 2026

September 25, 2026

October 28, 2026

November 26, 2026

December 22, 2026

CPP Eligibility Rules Explained

To qualify to apply for CPP retirement benefits, you must:

Be at least 60 years old

Have made at least 1 valid CPP contribution

CPP eligibility is not affected by citizenship. Anyone who works and contributes in Canada builds CPP entitlement.

Additional CPP credits may be available through pension sharing after divorce or separation.

Canada also maintains international social security agreements with several countries, which can help individuals qualify for CPP if they worked part of their careers abroad.

CPP Payment Amounts in 2025

CPP payment amounts vary significantly based on contribution history and retirement timing.

The maximum monthly CPP retirement benefit at age 65 in 2025 is $1,433.00.

However, most recipients receive less. The average monthly CPP retirement payment is approximately $899.67.

CPP disability benefits and survivor benefits follow different formulas and are calculated separately from retirement pensions.

CPP Increase Effective January 1, 2026

CPP benefits are indexed annually to inflation.

As of January 1, 2026, CPP payments will increase based on Consumer Price Index data from the previous year.

This means the December 22 payment is the final CPP deposit calculated at 2025 rates, with higher payments beginning in January 2026.

Annual indexation helps protect purchasing power amid rising living costs.

OAS benefits are also indexed, but adjustments occur quarterly rather than annually.

OAS rates are reviewed in January, April, July, and October to reflect inflation trends.

OAS increases in early 2026 will reflect price changes from the second half of 2025.

CPP calculations are based on multiple factors:

Career Earnings

Your lifetime earnings determine how much you contribute and how much CPP you earn.

The program excludes your lowest-earning 17% of years to reduce the impact of career interruptions.

Contribution Limits

Contributions are calculated on pensionable earnings up to the annual maximum.

For 2025, the maximum pensionable earnings limit is $66,600.

Age Adjustments

The age at which you start CPP has a permanent impact on monthly payments.

When Should You Start Receiving CPP

CPP can be started anytime between ages 60 and 70.

Starting at age 60 reduces payments by 0.6% per month

Starting at age 65 provides the standard benefit

Deferring up to age 70 increases payments by 0.7% per month

Delaying CPP until age 70 results in up to 42% higher monthly payments compared to starting at 65.

There is no benefit to delaying CPP beyond age 70.

CPP Post-Retirement Benefits

Individuals who continue working while receiving CPP and are under age 70 can keep contributing and earn Post-Retirement Benefits.

These benefits permanently increase CPP income and are paid on top of the base pension.

Post-Retirement Benefits are particularly relevant for Canadians who transition gradually into retirement or work part-time later in life.

CPP Disability Benefits

CPP disability benefits provide monthly income support to contributors who can no longer work due to a severe and prolonged disability.

Eligibility depends on:

Recent CPP contribution history

Medical certification

Severity and duration of the disability

CPP disability payments continue until age 65, when they convert to CPP retirement benefits.

CPP Survivor and Death Benefits

CPP also provides financial support to families after the death of a contributor.

Survivor benefits may include:

Monthly survivor pensions for spouses or common-law partners

Benefits for dependent children

A one-time death benefit

These benefits help stabilize household income during periods of loss.

Tax Treatment of CPP and OAS

Both CPP and OAS are taxable income.

Recipients receive T4A(P) slips for CPP and T4A(OAS) slips for OAS, which must be reported on annual tax returns.

CPP and OAS income may affect eligibility for income-tested benefits, including the Guaranteed Income Supplement.

CPP Administration and Payment Processing

CPP benefits are administered by Service Canada, while tax reporting and benefit coordination are handled by the Canada Revenue Agency (CRA).

Recipients can manage their CPP accounts, update banking information, and access benefit estimates through online government portals.

Ensuring accurate records helps prevent payment delays.

Understanding CPP early allows individuals to:

Plan retirement income more accurately

Decide when to start benefits strategically

Supplement CPP with private savings if needed

CPP works best as part of a broader retirement income strategy.

The last CPP and OAS payments of 2025 will be issued on December 22, closing the year and setting the stage for higher CPP payments starting January 1, 2026.

For current beneficiaries, this payment provides year-end stability.

For contributors, it highlights the long-term value of consistent participation in Canada’s public pension system.

CPP and OAS remain central pillars of financial security, providing predictable income and inflation protection for millions of Canadians.

Staying informed about payment dates, benefit calculations, and upcoming increases helps ensure financial plans remain on track.

Frequently Asked Questions (FAQs)

What should I do if my CPP payment is late or missing?

If your CPP payment does not arrive on the scheduled date, you should wait 2 to 3 business days before taking action. If the payment is still missing, contact Service Canada to check for banking issues, address errors, or account holds. Most delays are caused by outdated direct deposit information.

Can I receive CPP payments if I live outside Canada?

Yes. CPP payments can be received outside Canada in most countries. Payments are deposited directly into foreign bank accounts or issued by international cheque, depending on the country. Residency outside Canada does not cancel CPP, but taxes and banking timelines may differ.

How do CPP payments work for self-employed workers?

Self-employed individuals must pay both the employee and employer portions of CPP contributions through their tax return. CPP payments in retirement are calculated the same way as for employees, but missed or inconsistent contributions during self-employment can significantly reduce future CPP income.

Does CPP stop automatically if I keep working after retirement?

No. CPP does not stop if you continue working. If you are under age 70, you will keep contributing to CPP and earn Post-Retirement Benefits, which permanently increase your monthly CPP payments. Contributions stop automatically at age 70, even if you are still working.

How can I increase my future CPP payments?

You can increase future CPP payments by delaying the start of benefits, continuing to work and contribute after starting CPP to earn Post-Retirement Benefits, or correcting missing contribution years in your CPP record.

Can I stop, restart, or change my CPP payment start date?

Yes. You can cancel your CPP application within 6 months of starting payments or request a voluntary suspension after age 65 to increase future payments. Changes must be requested directly through Service Canada.

Gagandeep Kaur Sekhon moved to Canada in 2010 on a study visa. She navigated through the ups and downs of her student life and gained her permanent residency in 2015. Today, she is a proud Canadian citizen residing in Calgary, Alberta. She is mother of 2 beautiful daughters and making her difference through writing and guidance at INC – Immigration News Canada.