CPP increase for January 2027
On the CPI published so far, the January 2027 increase works out to 2.6% Running · 11 of 12 months
Every CPP pension and benefit in pay rises each January by a cost-of-living percentage written into the Canada Pension Plan Act. This page runs that exact formula on Statistics Canada's CPI as each month is published, and switches to Service Canada's official figure the day it appears. Nothing here is a forecast.
The 2027 figure, and where it stands
January 2027 increase
2.6%
running, 11 of 12 months published
CPI average so far, November 2025 to October 2026
167.7
against 163.4 for the same 11 months a year earlier
Final after
Nov 16
October 2026 CPI, 8:30 a.m. ET; Service Canada posts the figure in late December
Source: Canada Pension Plan Act s.43 (each 12-month average rounded to one decimal, as Service Canada publishes them); Statistics Canada table 18-10-0004-01, all-items CPI, read daily, latest month September 2026. Our arithmetic reproduces the published increases for 2023 to 2026 exactly; the official figure governs. See the inflation page for the monthly CPI behind it.
What the increase means in dollars
The percentage applies to whatever you receive now. The average new CPP retirement pension at 65 is $858.34 a month (July 2026) and the maximum $1,507.65 (January 2026). For scale, the 2026 increase of 2.0% on those amounts is worth about $17.17 and $30.15 a month respectively; the 2027 figure is applied the same way once it is final.
The same percentage is applied to the survivor's pension (maximum $904.59 at 65 and over in 2026), the disability benefit (maximum $1,741.20), the post-retirement benefit and the children's benefits. Service Canada applies it automatically; the January deposit simply arrives larger, and your first 2027 T4A(P) reflects it.
How the formula works
The Canada Pension Plan Act indexes benefits once a year, in January, by the ratio of two 12-month CPI averages: November of two years ago to October of last year, over the same 12 months a year earlier. Each average is rounded to one decimal before dividing. If the ratio is below 1 the increase is zero, never negative. Because it is a 12-month average, it lags the monthly inflation headlines: a spike in the autumn shows up mostly in the following January.
This is different from how the maximum for new pensions is set. That depends on the year's maximum pensionable earnings (YMPE), which follows average wages, not prices ($74,600 in 2026). Two people can therefore see different headline numbers in January: an existing pension rises by the CPI percentage, while the ceiling for a brand-new pension rises with wages. Our 2027 limits tracker follows the YMPE and the other announced figures.
Past January increases
| January | CPP increase |
|---|---|
| 2026 | 2.0% |
| 2025 | 2.6% |
| 2024 | 4.4% |
| 2023 | 6.5% |
| 2022 | 2.7% |
| 2021 | 1.0% |
| 2020 | 1.9% |
| 2019 | 2.3% |
Source: Service Canada, CPP and the Consumer Price Index, checked October 22, 2026.
What to do with it
- Nothing to apply for. The increase is automatic. If your January deposit is not larger, check your My Service Canada Account for a tax-withholding change before calling.
- Tax withholding: CPP is taxable. If you have tax deducted at source, the increase raises the gross and the deduction together; if you do not, a larger pension can mean a larger balance owing in April.
- GIS and other income-tested benefits: CPP counts as income for the GIS and the OAS clawback, so an increase can shave a little off those. The thresholds are indexed too, which usually offsets it.
- Not started CPP yet? Delaying still earns 0.7% a month after 65, on top of indexation. The CPP calculator compares start ages with inflation included.
First 2027 payment
Service Canada publishes the 2027 payment calendar in late autumn; the dates appear on the CPP payment dates page and in the calendar feed the day they are posted. The last 2026 payment is Tuesday, December 22, 2026.
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Frequently asked questions
How much will CPP go up in January 2027?
It is not announced yet. The increase is the average CPI for November 2025 to October 2026 over the average for November 2024 to October 2025, under the Canada Pension Plan Act. On the 11 months Statistics Canada has published so far, that works out to 2.6%. The last month in the formula (October 2026) is released November 16, 2026, and Service Canada posts the official figure in late December.
When does the increase show up in my deposit?
With the first CPP payment of 2027, which Service Canada deposits in late January (the 2027 dates are added to our CPP payment dates page the day Service Canada publishes them). The new rate is applied automatically; there is nothing to apply for. The last 2026 payment is Tuesday, December 22, 2026.
Does the increase apply to the CPP I have not started yet?
Not this one. The January cost-of-living increase applies to benefits already in pay. A pension that starts in 2027 is calculated from your own earnings record and the 2027 year's maximum pensionable earnings (YMPE), which rises with average wages rather than prices ($74,600 in 2026; CRA publishes the 2027 figure in early November). That is why the maximum for new pensions and the increase for existing pensions are different numbers.
Can CPP go down if inflation is negative?
No. The Canada Pension Plan Act does not reduce benefits when the CPI average falls; the increase is simply zero and the next positive year starts from the higher base. The same protection applies to OAS.
Why is my increase different from the headline inflation rate?
Because the formula uses a 12-month average of the CPI (November to October) against the previous 12-month average, not the latest year-over-year figure. The latest monthly inflation reading is 3.1% for September 2026, but the average over the formula window moves more slowly. A year in which inflation accelerated late shows up mostly in the following January's increase.
Is OAS increased at the same time?
OAS is adjusted every quarter (January, April, July and October) on a three-month CPI average, so it catches up with prices faster but in smaller steps. The January OAS adjustment has its own page. The GIS, Allowance and Allowance for the Survivor follow the OAS schedule.
What was the increase in 2026 and before?
2026: 2.0%; 2025: 2.6%; 2024: 4.4%; 2023: 6.5%; 2022: 2.7%; 2021: 1.0%; 2020: 1.9%; 2019: 2.3%. The 2023 figure was the largest since the early 1990s, reflecting the 2022 inflation peak.
Running and final figures are RetireSmarter calculations from Statistics Canada's published CPI using the statutory formula; they are not forecasts and not government announcements. Service Canada's published increase replaces them the day it appears. Information only, not advice.
Live from the source, refreshed daily
Read every morning from Service Canada, Statistics Canada, the Bank of Canada and the CRA, and again at 11 a.m. ET on weekdays. Published figures only, no estimates.
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