In July 2025, eligible Canada Pension Plan (CPP) and Old Age Security (OAS) recipients are expected to receive up to $1,976 via direct deposit.
This combined payout provides essential income support to retired Canadians. Understanding who qualifies, the exact payment date, and how to access the funds is crucial for planning your monthly budget.
Let’s break down the details for this month’s important payment update.
Overview: Combined CPP and OAS Payment in July 2025
CPP and OAS are two major pillars of Canada’s retirement income system. While CPP is based on employment history and contributions, OAS is residency-based.
When combined, the maximum payment can reach $1,976 for certain recipients in July 2025.
Payment Breakdown – July 2025
| Benefit | Amount (Monthly) |
|---|---|
| CPP (Max at Age 65) | $1,306.57 |
| CPP (Max at Age 70) | $1,734.76 |
| OAS (Ages 65–74) | $727.67 |
| OAS (Ages 75+) | $800.44 |
| Total (CPP + OAS Max) | Up to $1,976 |
| Payment Date | July 26, 2025 |
The total of $1,976 is applicable for individuals who qualify for maximum benefits from both CPP and OAS.
CPP – Canada Pension Plan
CPP offers monthly retirement income to individuals who contributed during their working years. The payment amount depends on:
- How much you contributed
- How long you contributed
- When you choose to begin collecting
Most Canadians don’t receive the maximum and instead average around $772 per month from CPP.
OAS – Old Age Security
OAS is available to individuals aged 65 and over, based on years of residence in Canada. It’s not linked to employment, but higher-income seniors may face a clawback starting at $83,761 in net income.
Additional Notes:
- Full OAS benefits usually require 40 years of residency in Canada after age 18.
- Seniors aged 75 and older receive a higher monthly OAS amount.
Eligibility Requirements
CPP Eligibility:
- Must be 60 years or older
- Must have made at least one valid CPP contribution
- Amount depends on work history and age when benefits begin
OAS Eligibility:
- Must be 65 years or older
- Lived in Canada for at least 10 years after age 18
- For full OAS: 40 years of residence in Canada
- Must be a Canadian citizen or legal resident
Use the government’s online eligibility tool to check your personal status.
When Will You Receive the $1,976?
The official payment date for this combined deposit is:
➡ July 26, 2025
If you’re enrolled in direct deposit, the money should appear in your bank account that same day. Paper cheque recipients may experience delays of a few days.
Why Use Direct Deposit?
Enrolling in direct deposit ensures:
- Faster access to your funds
- Increased security (no lost cheques)
- Ease of planning with predictable payment arrival
To enroll or make changes, visit your My Service Canada Account or the CRA website.
Tax Considerations
Both CPP and OAS are taxable sources of income.
CPP Taxation:
- Considered regular income
- You can request tax withholding
- Rates depend on total taxable income
OAS Taxation:
- Subject to tax
- Clawback begins at $83,761
- Lose 15 cents per dollar above that threshold
To minimize taxes, consider splitting pension income with your spouse or using Tax-Free Savings Accounts (TFSA).
If you’re a retiree in Canada, July 2025 may bring a direct deposit of up to $1,976 from CPP and OAS combined.
The actual amount will vary depending on age, residency, income level, and past contributions. Staying updated and ensuring you’re enrolled in direct deposit will help you avoid delays and manage your finances with ease.
FAQs
What if I don’t receive the full $1,976?
Most retirees receive less than the maximum due to varying contribution histories or partial residency. Check your My Service Canada Account for your exact payment.
Can non-citizens receive OAS?
Yes, legal residents who have lived in Canada for at least 10 years after age 18 can receive partial or full OAS.
What happens if my income is above the clawback threshold?
If your net income exceeds $83,761, your OAS payment will be reduced by 15 cents for every dollar over that limit.