Many Canadian seniors are searching for information on the CPP OAS increase June 2025—and it’s easy to get confused. While there is news of an increase, it’s not across both programs. The reality is that OAS is going to increase in July 2025, but CPP will not increase in June. This difference in timing has led to questions and concerns, especially for retirees trying to budget amid rising living costs.
This article explains exactly what’s happening with the CPP OAS increase June 2025, why CPP isn’t rising this month, and what to expect from both programs going forward.
Table of Contents
If you’re noticing that OAS is going to increase in July 2025 but wondering why CPP won’t increase in June, you’re on the right track. The two programs use different indexation schedules, so while Old Age Security (OAS) gets a boost mid-summer, the Canada Pension Plan (CPP) does not. This article explores the mechanics of both—clearly breaking down their schedules, reasons behind them, and how this impacts your retirement income.
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OAS: Inflation-Linked Quarterly Adjustments
OAS benefits are reviewed four times a year—in January, April, July, and October—based on the Consumer Price Index (CPI).
- April–June 2025: No change (CPI had dipped)
- July–September 2025: A 1.0% increase, translating to a 2.3% rise from July 2024 levels.
That means seniors eligible for OAS will see higher payments beginning in July.
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CPP: Annual January Adjustment, No June Increase
Unlike OAS, CPP benefits are indexed annually in January only, tracking CPI growth over the previous year.
For the CPP OAS increase June 2025 topic, it’s important to note:
- January 2025 saw a 2.6% increase in CPP benefits, effective January–December 2025.
- June 2025 brings no change: the next adjustment won’t occur until January 2026.
So, while OAS changes mid-year, CPP remains steady through the calendar year.
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What’s Driving the Difference?
The key factor is indexation timing:
- OAS adjusts quarterly to better reflect short-term cost-of-living changes, ensuring more timely support.
- CPP adjusts annually, smoothing benefit updates over the year and simplifying administration.
Therefore:
- No CPP increase in June is normal.
- OAS increase in July ensures seniors’ income keeps pace with inflation.
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Estimated Benefit Changes
As of July 2025:
- OAS recipients will get the new, higher monthly amount—for example, those 75+ saw OAS rise to $808.44 in July.
- CPP beneficiaries saw a 2.6% boost in January 2025, and that rate holds through December.
What You Should Do
- Budget with awareness: Expect slightly higher OAS from July onward, but CPP stays unchanged until January.
- No need to reapply: Both increases are automatic if benefits are active.
- Check your statements: OAS amounts will reflect new rates as of July; CPP statements in January.
- Stay tax-ready: Ensure your 2024 return is filed to avoid repayment thresholds affecting OAS.
Summary Table
| Benefit | Increase Timing | Increase Amount | Payment Impact in June 2025 |
|---|---|---|---|
| OAS | July 2025 (quarterly) | ~1.0% CPI-based +2.3% YoY | Payment raised in July |
| CPP | January 2025 (annual) | 2.6% for 2025 | No June change |
Final Takeaway
To recap: OAS gets a 1% boost in July, reflecting mid-year CPI changes, while CPP holds steady until next January. Knowing when each benefit adjusts helps seniors manage finances and anticipate income. If you’d like help estimating your new OAS amount or understanding CPP’s annual schedule, I’m here to assist!