Canada Pension Plan amounts and the Consumer price index
Canada Pension Plan (CPP) benefit increases are calculated once a year using the Consumer Price Index (CPI) All-Items Index. The new amounts come into effect each January. These increases are legislated under the Canada Pension Plan so that benefits keep up with the cost of living.
Next payment adjustment - January to December 2026
Based on changes in the CPI, CPP benefits paid in 2025 will increase by 2.0% for 2026.
Last payment adjustment - January to December 2025
Based on changes in the CPI, CPP benefits paid in 2024 increased by 2.6% for 2025.
Annual adjustment calculations
CPP amounts are adjusted once a year in January. The adjustment is the percentage change from one 12-month period to the previous 12-month period.
Calculation of the January to December 2025 adjustment
The calculation of the January to December 2025 adjustment is based on the change in the average CPI between the 2 following periods:
- from November 2023 to October 2024, and
- from November 2022 to October 2023
The average CPI for the period from November 2023 to October 2024 is 160.4.
The average CPI for the period from November 2022 to October 2023 is 156.3.
The CPI increased by 2.6% between these 2 periods. As a result, CPP benefit amounts increased by 2.6%.
| Most recent 12-month period at the time of calculation | CPI | Previous 12-month period | CPI |
|---|---|---|---|
| November 2023 | 158.8 | November 2022 | 154.0 |
| December 2023 | 158.3 | December 2022 | 153.1 |
| January 2024 | 158.3 | January 2023 | 153.9 |
| February 2024 | 158.8 | February 2023 | 154.5 |
| March 2024 | 159.8 | March 2023 | 155.3 |
| April 2024 | 160.6 | April 2023 | 156.4 |
| May 2024 | 161.5 | May 2023 | 157.0 |
| June 2024 | 161.4 | June 2023 | 157.2 |
| July 2024 | 162.1 | July 2023 | 158.1 |
| August 2024 | 161.8 | August 2023 | 158.7 |
| September 2024 | 161.1 | September 2023 | 158.5 |
| October 2024 | 161.8 | October 2023 | 158.6 |
| The average for the 12-month period | 160.4 | The average for the 12-month period | 156.3 |
If the cost of living decreased over the 12-month period, the calculation of the percentage increase would produce a negative amount. However, as prescribed under the Canada Pension Plan, if there is a decrease in the cost of living, benefit amounts do not decrease. Rather, benefits remain at the same level until the CPI increases again.