2024 OAS and CPP Increase: What to Expect?
Understanding how Old Age Security (OAS) and the Canada Pension Plan (CPP) function is crucial for many Canadians relying on these government benefits for their retirement expenses. Common questions include the average CPP and OAS payments, CPP and OAS eligibility, and the anticipated 2024 increase. This article addresses these queries and more, covering topics like CPP and OAS eligibility, application procedures, and the use of a CPP and OAS calculator. Both CPP and OAS payments are adjusted annually using the Consumer Price Index (CPI) to account for inflation, with CPP reviewed every January and OAS modified quarterly as part of an ongoing improvement process.
2024 OAS Increment
Canada’s primary pension program, Old Age Security (OAS), provides a taxable monthly payment to eligible residents and citizens once they reach 65, funded by government tax revenues. Unlike the Canada Pension Plan (CPP) and employee pension plans, personal contributions are not required. You can receive OAS payments irrespective of your career history.
For Canadians, the Old Age Security may see an increase from 86,912 CAD to 90,997 CAD. According to the CRA, the maximum pensionable earnings under the Canada Pension Plan will rise to 68,500 CAD from the current 66,600 CAD. This article covers the anticipated OAS and CPP increases in 2024, so take a look for more details.
CPP and OAS 2024 Increase: What to Expect?
In 2024, the maximum pensionable earnings for CPP will rise from CAD 66,600 to CAD 68,500. Both employers and employees will maintain their rates at 5.95% and 11.9%, respectively, while self-employed individuals’ rates remain unchanged. Starting 2024, an additional maximum pensionable earnings amount of CAD 73,200 will incur extra CPP contributions (4% for employers and employees, 8% for self-employed individuals) on earnings falling between this new amount and the annual maximum pensionable earnings limit of CAD 68,500.
Do CPP and OAS Increase with Inflation?