CPP Payments Dates 2023: How much CPP Cheque will increase

CPP payment dates 2022

In this wonderful outline article, you get to know CPP payment dates for 2023, CPP increases 2023, CPP payment dates for 2023, CPP payments 2023 increase, Canadian pension payment dates for 2023, how much CPP will increase for 2023 as well as other information you need to know.

Introduction

Canada Pension Plan (CPP) retirement pension is a monthly, taxable benefit that replaces part of your income when you retire. If you qualify, you’ll receive the CPP retirement pension for the rest of your life. To qualify you must:

be at least 60 years old
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.

The Canada Pension Plan (CPP) is the most popular retirement plan in Canada. 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. To learn about the specific CPP payment dates, how much you can expect to receive and more, read on below.

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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.

CPP payment pates 2023 Schedules

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 payments also coincide with Old Age Security (OAS) pension payments, so if you’re receiving both, you’ll get both payments on the same day.

Here are the CPP payment dates for 2023:

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

On top of the CPP retirement pension, other CPP benefits include the post-retirement pension (if you both contribute to and receive CPP between the ages of 60-70), the disability benefit (if you have a serious disability), the survivor’s pension (paid to the spouses of deceased CPP contributors), the children’s benefit (paid to the children of deceased CPP contributors), and the death benefit (a one-time payment made to the estate of deceased CPP contributors). All of these benefits are paid on the dates above.

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. For 2022, 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 2022 is $61,400.

If you consistently earn around 60% of the YMPE, then, 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 2022, last updated by the government of Canada in mid-January:

Benefit Average amount for new beneficiaries (October 2021) Maximum monthly payment amount (2022)
Retirement pension (at age 65) $702.77 $1,253.59
Post-retirement benefit (at age 65) $11.56 $36.26
Disability benefit $1,050.29 $1,457.45
Post-retirement disability benefit $510.85 $524.64
Survivor’s pension (below 65) $461.51 $674.79
Survivor’s pension (65 and older) $307.55 $752.15
Children of disabled CPP contributors $257.58 $264.53
Children of deceased CPP contributors $257.58 $264.53
Death benefit (one-time payment) $2,495.36 $2,500.00
Combined survivor’s and retirement pension (at age 65) $895.43 $1,257.13
Combined survivor’s pension and disability benefit $1,121.66 $1,467.04

Here are some quick insights from the table above

Average CPP retirement pension benefit: $702.77/month
Maximum CPP retirement pension benefit: $1,253.59/month
Average disability benefit: $1,050.29/month
Maximum disability benefit: $1,457.45/month
Maximum death benefit: $2,500

As 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 2022
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). 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.

CPP Increases In 2023

In January 2022, CPP benefits were increased by 2.7%, calculated as an average of the preceding 12 months’ Consumer Price Index. This number may be higher for 2023, 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 (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%

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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 2022, 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.

CPP Payment Dates FAQs

What’s The Maximum CPP Benefit For 2022?

The maximum CPP benefit payment is $1,253.59/month for 2022, which is a yearly pension of $15,043. The 2021 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 2022, or $17,489.40 annually.

How Much Did CPP Benefits Increase In 2022?

CPP benefits are adjusted each January to account for inflation. At the start of January 2022, the amount was increased by 2.7%. This number may be 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 2022?

For recipients under the age of 65, the average CPP survivor’s benefit increased from $443.08 in 2021 to $461.51 in 2022, while the maximum CPP survivor’s benefit increased from $650.72 in 2021 to $674.79 in 2022.

For recipients 65 and older, the average CPP survivor’s benefit increased from $294.43 in 2021 to $307.55 in 2022, while the maximum CPP survivor’s benefit increased from $722.25 in 2021 to $752.15 in 2022.

When Does CPP Get Deposited?

CPP (and OAS) payments are made via direct deposit on the third-to-last business day of each month.