What Is CPP? CPP Payment Dates for 2021 and 2022

You might be wondering what is the eligibility for Canada Pension Plan? Or what are the CPP payment dates for 2021 and 2022?

Canada Pension Plan, or CPP, is a defined contribution state pension plan administered by the Federal government in Canada. It is paid monthly to the beneficiary. Note that Quebec has its own scheme (QPP).

How Do You Contribute to CPP?

CPP employee contributions are deducted from your paycheque by your employer, or submitted with your taxes if you’re self-employed. Contributions start when you hit earnings of $3500/year.

Your employer also pays a CPP contribution, and the self-employed pay the equivalent of both the employee and employer contribution combined. Until recently, the employee and employer contribution was 4.95% (and doubel that for self-employed).

Starting in 2019, CPP is has started being revamped under the heading of “enhanced contributions”. Employee, employer, and self-employed contributions will be increased:

YearEmployee/employer increaseSelf-employed increaseEmployer/Employee rateSelf-employed rate
20190.15%0.3%5.10%10.2%
20200.15%0.3%5.25%10.5%
20210.2%0.4%5.45%10.9%
20220.25%0.5%5.70%11.4%
20230.25% 0.5%5.95%11.9%
CPP contribution increases 2019 – 2023

Additionally, starting in 2024, the maximum insurable earnings limit will be increased. This will effectively make more of your earnings if you’re a high earner subject to CPP contribution deductions.

How Much Do You Get?

The maximum CPP monthly payment for 2021 is $1203.75.

How Do I Estimate What I Will Get?

Create a My Service Canada account and there’s a function within the website to estimate your CPP payment at various retirement ages.

How Do I Get It?

You must apply for CPP — it is not an automatic benefit. You can apply as early as 60-years old, or as late as 70. Applying early permanently reduces your pension rate; applying late permanently increases it.

As long as you’ve contributed to the system and qualify for payments, you can receive CPP whether or not you’re resident in Canada at the time of payment. A bonus for those wanting to retire abroad.

CPP Disability

If you have contributed to CPP, are under retirement age, and have a severe and prolonged disability, you may qualify for the CPP Disability benefit. This is a monthly payment that must be applied for with medical proof of your disability.

Is CPP Sustainable – Will There Be Anything Left for Me?

CPP Investments is a crown corporation that currently invests the excess CPP contributions to enable the system to be sustainable.

CPP Investments currently manages over $500bn for the fund on behalf of Canadians.

CPP Payment Dates for 2021 and 2022

  • August 27, 2021
  • September 28, 2021
  • October 27, 2021
  • November 26, 2021
  • December 22, 2021
  • January 27, 2022
  • February 24, 2022
  • March 29, 2022
  • April 27, 2022
  • May 27, 2022
  • June 28, 2022
  • July 27, 2022
  • August 29, 2022
  • September 27, 2022
  • October 27, 2022
  • November 28, 2022
  • December 21, 2022

Final Words

While many people grumble about the relatively small payments CPP provides (they’re proportional to your contributions, though), it does provide an important safety net for many Canadians.


The content on this site is for informational and educational purposes only and is not intended as a substitute for professional financial advice. Always consult with a licensed financial or tax advisor before making any decisions based on the information you read on this blog.

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