Established in 1965, the Canada Pension Plan (CPP) provides the monthly pension income to the contributors and their families of the country. The Canada Pension Plan payments are received by the eligible candidates who are retired or have any disability. It is received in all parts of the country except for the Quebec. The province of Quebec has its own pension plan named as Quebec Pension Plan (QPP).
The citizens of Canada contribute to the CPP based on their earnings. As of 2024, the 4% increase in CPP is expected but the Canada Revenue Agency has not confirmed it yet. Through this post, I will cover all the details regarding the CPP payment increase July 2024, whether it is coming or not including its eligibility criteria, maximum payment amount and when can you expect it.
Note: Beneficiaries can expect their monthly CPP benefits on the scheduled payment amount. However, a 4% increment in the CPP payments are not confirmed by the revenue department and the Canadian government.
CPP Payment Increase July 2024
The payment of CPP depends on the percent of your earnings and the time of your employment you have contributed to the CPP. The employment age in Canada can be counted from 18 to 65 and then you will start receiving the CPP benefits. Due to rise in inflation, the citizens of the country are facing difficulties in affording even the basic household requirements with their constant income source. To avoid it, the Canadian government may increase the CPP by 4%. Though, there is no confirmation by the CRA on this news yet. According to January 1, 2019, being a part of the CPP enhancement, majority of Canadian employees, employers and self-employed have started to contribute additionally to CPP. Anyone who have contributed additionally to CPP after January 1, 2019 is all set to receive additional benefits of increased income offered by the CPP.
From January 1, 2024, the second additional CPP contributions (CPP2) will be introduced. These additional CPP contributions are introduced for the employees who earn higher income. These incomes can be understood by First Earnings Ceiling and Second Earnings Ceiling. So, what are the First Earnings Ceiling and Second Earnings Ceiling? Let’s dive deeper into it. The First Earnings Ceiling, also known as Year’s Maximum Pensionable Earnings (YMPE) can be understood as an eligible income on which you have to make contributions to CPP. In 2024, the YMPE will be $68,500. On the other hand, the Second Earnings Ceiling can also be known as Year’s Additional Maximum Pensionable Earnings (YAMPE). The Second Earnings Ceiling will be based on the First Earnings Ceiling. It will be 7% higher than the YMPE in 2024 and 14% higher in 2025 and the following years. In 2024, the Second Earnings Ceiling will be $73,200.
CPP Payment Increase July 2024 Overview
| Post name | CPP Payment Increase July 2024 |
| Department | Canada Revenue Agency |
| Country | Canada |
| Applicable for | Eligible citizens of India |
| Expected increase | Around 4% |
Eligibility for CPP Payment Increase
The CPP is beneficial for the citizens of Canada who are retired and the persons who cannot work due to any disability. But before applying for the CPP, it is must that you meet all the eligibilities set by the Canadian government to receive the benefits of Canada Pension Plan (CPP). Take a look at the following points listed below to know about your eligibility for the CPP benefits:
- You must be a citizen of Canada to claim the CPP benefits.
- The retirement age is set 65 by the Canadian government. So, to be eligible to claim the CPP benefits, you must be of 65 years or more.
- At the starting of your employment, it is necessary that you must have contributed for at least 10 years to CPP to claim the CPP benefits.
- The contribution to should be less than the CPP to receive the benefits.
CPP Payment Increase Benefits
The main aim of the CPP is to benefit those who contributed to CPP through their earnings and their time after the employment. The CPP benefits the retirees after the retirement to assist in affording the basic household requirements as per their living standards. The CPP is also responsible to benefit those who have any disability or cannot work due to the same. Apart from providing retirement pensions, you can also get benefits of Canada Pension Plan (CPP) if you have any disability post your retirement. Apart from these, CPP also includes the child disability benefits and the benefits in case of the death. However, beneficiaries are advised to wait for the official confirmation by the CRA regarding in increment in the pension.
CPP Payment Increase Payment Amount 2024
To claim the Canada Pension Plan, you should be a citizen of Canada and of 65 years and more. The CPP is divided into two categories: first is the retirement pension and the second is disability benefits. To check for the latest update on the payment amounts of different categories of CPP Payment 2024, take a look at the table mentioned below:
| Type | Amount |
| Retirees pension | CAD 1307 |
| Disability benefits | CAD 1440 |
| Post retirement disability benefits | CAD 559 |
| Child disability | CAD 282 |
| Death (One time) | CAD 2500 |
CPP Payment Increase July 2024 Deposit Date
The amount you receive under the CPP depends on the amount you have contributed and the time you have contributed after your employment. Usually, the payment amount of the CPP is deposited via cheque or to your bank accounts directly at the end of each month. As of July 2024, the confirmed date to receive the payment amount of CPP is 29th July, 2024. You should note that the citizens who have met all the essential eligibilities that are required will be able to receive the payment amount. To check the annual deposit dates, check out the table mentioned below:
| Month | Date |
| June | 26th June, 2024 |
| July | 29th July, 2024 |
| August | 28th August, 2024 |
| September | 25th September, 2024 |
| October | 29th October, 2024 |
| November | 27th November, 2024 |
| December | 20th December, 2024 |
CPP Payment Increase 2024 Fact Checks
It is to notify to the eligible CPP recipients that there will be no increment in the monthly aid unless the CRA intend to do so. The news regarding the 4% CPP payment increase are mere rumours circulating on several websites and social media platforms. It is advised to be in touch with the CRA to gain the credible news regarding your CPP payment. For more information, you can also visit the official website of CRA.
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