This guide will talk about the CPP Payment Dates or CPP Payment Schedules. We will talk about the CPP payment dates 2023, CPP payment dates 2022, CPP payment increase 2023 and more.
Table of Contents
CPP Payment Dates
What is CPP in Canada?
The Canada Pension Plan (CPP) stands as one of the fundamental pillars of retirement security for Canadian citizens. This government-sponsored pension program is accessible to all residents of Canada, with the exception of Quebec, which operates its own Quebec Pension Plan (QPP).
The CPP serves as a financial safety net, offering contributors and their families a portion of their earnings in times of income loss due to retirement, disability, or unfortunate circumstances like death.
Remarkably, enrollment in the CPP begins automatically once an individual turns 18 and secures employment, ensuring that Canadians start building their retirement nest egg from an early age. In Quebec, employees are covered by the Quebec Pension Plan instead.
|What is CPP||Monthly benefits given to a Canadian citizen (who has contributed to the CPP) and its family members a part of their earnings in the event of income loss due to retirement, death and disability.|
|Eligibility||Must be at least 60 years of age.|
Have made at least one valid contribution to the CPP
Valid contributions can be either from work you did in Canada, or as the result of receiving credits from a former spouse or former common-law partner at the end of the relationship.
|Issuing body||Government of Canada|
|Minimum age to attain the benefits||At least 60 years of age|
|How is the CPP paid||Starting from the age of 18, a portion of an individual’s income is withheld as taxes by the Canada Pension Plan Investment Board (CPPIB). These funds are then astutely invested in a diversified portfolio comprising stocks, bonds, real estate, and other assets. Over time, the returns generated from these investments serve as a reliable source of retirement income, becoming accessible once the individual reaches 65 years of age. Notably, these contributions continue until the age of 69, further solidifying the financial security of retirees.|
In essence, the Canada Pension Plan epitomizes a prudent approach to safeguarding the economic well-being of Canadians in their retirement years. With its inclusive scope, thoughtful provisions, and astute investment strategies, the CPP stands as a testament to Canada’s commitment to the financial security and welfare of its citizens.
CPP Payment Dates
The CPP payments include the retirement pension and disability, children’s and survivor benefits. CPP benefit payments are made monthly. CPP payments are made usually around the last business day of the month.
You can check the CPP Payment Dates here on the Government of Canada website.
CPP Payment Dates 2023 or CPP payments 2023
The CPP Payment dates for 2023 are given below.
January 27, 2023
February 24, 2023
March 29, 2023
April 26, 2023
May 29, 2023
June 28, 2023
July 27, 2023
August 29, 2023
September 27, 2023
October 27, 2023
November 28, 2023
December 20, 2023
Source: Government of Canada website
CPP Max 2023
The dollar amount of the CPP payment you will receive depends on three things:
- The year in which you started receiving your CPP payments. For example, the CPP payment you receive when you start at age 60 will be lower than the CPP payment you would have gotten if you started your payments at age 65 (because the corpus would have been greater then).
- The contributions you have made to the CPP all through your working career.
- Your average earnings through your entire career.
For 2023, the maximum monthly amount you could receive if you start your pension at age 65 is $1,306.57.
To receive the maximum possible CPP payments after you retire, you must have made the maximum CPP contributions for at least 39 years out of the 47 years you are allowed to contribute to CPP from the age of 18 until age 70.
The maximum CPP contributions allowed in a year depend on the Yearly Maximum Pensionable Earnings (YMPE).
The average monthly amount paid for a new retirement pension (at age 65) in June 2023 was $772.71. Your situation will determine how much you’ll receive up to the maximum.
You can get an estimate of your monthly CPP retirement pension payments by signing in to your My Service Canada Account.
CPP maximum pensionable earnings
The Maximum Annual Pensionable Earnings (YMPE) is the highest level of income on which contributions to the Canada Pension Plan (CPP) are calculated. It is essentially the income threshold beyond which individuals do not need to make CPP contributions.
For instance, the YMPE for that year 2023 was $63,100. This means that any income an individual earns beyond this amount is not subject to CPP contributions.
It’s important to note that the YMPE can change annually, as it is adjusted to account for inflation and changes in average earnings. Therefore, it’s a good idea to check with official sources for the most up-to-date information.
CPP maximum pensionable earnings 2024
The maximum pensionable earnings under the Canada Pension Plan for 2024 will be $68,500, up from $66,600 in 2023, according to the Canada Revenue Agency.
And beginning next year, a second earnings ceiling of $73,200 will be used to determine additional CPP contributions, known officially as the year’s additional maximum pensionable earnings. As a result, earnings between $68,500 and $73,200 will subject to a second tranche of CPP contributions as part of the plan’s expansion that began in 2019. The basic exemption amount for 2024 remains at $3,500.
Employee and employer CPP contribution rates for 2024 remain at 5.95%, and the maximum contribution will be $3,867.50 each — up from $3,754.45 in 2023. The self-employed CPP contribution rate is double.
Employee and employer contribution rates for the second earnings tranche will be 4.00% in 2024, and the maximum contribution will be $188.00 each, with the self-employed rate double that.