If you’re counting on CPP to hit your account on January 28, I’ve got good news: it’s going to be bigger than last month.
Not life-changing bigger, but noticeable. We’re talking about a 2.0% bump across the board—the annual inflation adjustment that resets every January. And once it kicks in, that becomes your new baseline for the entire year.
I know what you’re thinking: “2% doesn’t sound like much.” You’re right, it’s not flashy. But here’s why it matters more than you might think.
Why This January Payment Matters
That 2.0% increase isn’t just a one-time bonus. It permanently resets your monthly CPP amount for 2026. Next year, when they calculate the 2027 increase, they’ll apply it to this new higher amount. That’s how you protect your income from getting eaten alive by inflation over time.
Think of it like this: if you’re getting $1,000 a month right now, you’re jumping to $1,020 in January. That’s $20 more every single month, or $240 extra over the year. Not enough to book a vacation, maybe, but enough to cover a few grocery trips or utility bills without stress.
The Numbers That Actually Matter to You
Let me break this down without the bureaucratic nonsense. Here’s what a 2.0% increase looks like in real money:
If you currently get $500/month: You’re moving to $510 (that’s $120 more over the year)
Getting $750? Expect $765 starting January 28 ($180 annually)
At $1,000? You’ll see $1,020 ($240 yearly bump)
Sitting at $1,200? That becomes $1,224 ($288 extra for 2026)
Lucky enough to get $1,400? You’re jumping to $1,428 ($336 more over twelve months)
The formula is dead simple: take your current monthly amount, multiply by 1.02, and that’s your new number.
Your actual deposit might be a few cents off due to rounding or tax withholding, but this gets you in the ballpark.
Who’s Getting This Increase?
Pretty much everyone already receiving CPP. The increase applies automatically—you don’t need to fill out forms or call anyone.
CPP Retirement: Whether you started getting CPP at 60, 65, or waited until 70, you’re getting the increase. The 2.0% applies to whatever your current amount is.
CPP Disability (CPP-D): If you’re on disability, your payment goes up too. For many families relying on CPP-D as a primary income source, this adjustment helps keep pace with rising costs.
Survivor Benefits: Widows, widowers, and families receiving survivor benefits will see the increase applied to their monthly amounts as well.
Post-Retirement Benefit: Still working while getting CPP? Your post-retirement contributions might be building additional benefits on top of the regular indexation.
Why Your Increase Might Look Different Than Your Friend’s
Here’s something that confuses people: you and your neighbor both get “CPP,” but on January 28, one of you sees a $15 increase and the other sees $28.
Same percentage, different dollars. Why?
Your starting baseline is different. If you started CPP early (say, at 60), your baseline is lower because of the early-start reduction. A 2.0% increase on $600 is $12. But if you waited until 70, your baseline is much higher—maybe $1,400. A 2.0% increase there is $28.
Same inflation protection, different dollar amounts. It’s not unfair; it’s just math working on different starting points.
Benefit type matters too. Someone on CPP disability has a different calculation than someone on retirement. Survivor benefits follow different rules. And if you have tax withheld from your CPP, your net deposit will look different than someone who doesn’t.
The Full 2026 CPP Payment Schedule (Save This)
Mark these dates in your calendar now. If you’re budgeting month to month, these are the days that matter:
- January 28, 2026
- February 25, 2026
- March 27, 2026
- April 28, 2026
- May 27, 2026
- June 26, 2026
- July 29, 2026
- August 27, 2026
- September 25, 2026
- October 28, 2026
- November 26, 2026
- December 22, 2026
Most people also get Old Age Security on these same dates, so this becomes your financial calendar for the year. Print it out. Stick it on the fridge. Plan your bigger expenses around it.
What About the “Maximum CPP” You Keep Hearing About?
Every year, headlines scream about the maximum CPP payment. Let me save you some frustration: most people don’t get the maximum.
The maximum is for people who contributed near the yearly earnings ceiling for most of their working life—usually 39+ years—and started CPP at 65 or later. That’s a pretty specific situation.
Most of us have real-life gaps: years in school, time off for caregiving, periods of part-time work, career changes, or coming to Canada later in life. All of that affects your CPP baseline.
The 2.0% increase applies to everyone equally, but the dollar impact depends entirely on your personal contribution history.
Stop comparing yourself to the maximum. Compare yourself to your own situation last year.
If You’re Just Starting CPP in Early 2026
Thinking about starting your CPP payments in January or February? Here’s what you need to know.
Your baseline is already the 2026 amount. If your first payment happens in 2026, the calculation uses the indexed rates automatically. You’re not “missing out” on anything—the increase is baked into your starting point.
Your first payment might look weird. Some people see a larger initial deposit that includes retroactive amounts based on when they applied versus when they became eligible. After that first payment, things normalize to your regular monthly amount.
CPP doesn’t start by itself. You have to apply. Don’t assume Service Canada will just start sending you money when you turn 65. If you want CPP to begin in January, apply well in advance—ideally a few months early—to avoid processing delays.
How to Confirm Your New Amount Before January 28
Want to see the increase before it hits your bank account? Log into your My Service Canada Account.
Here’s the quick check:
- Look at your CPP entitlement amount for December 2025
- Check your CPP entitlement for January 2026
- Compare the gross amounts (before any tax withholding)
The difference should be about 2.0%. If it’s not, the most common reasons are:
- Tax withholding changed
- There’s a file adjustment you weren’t aware of
- Rounding is affecting the final number
- You’re looking at the net deposit instead of the gross entitlement
If something looks really off, call Service Canada. But in most cases, the numbers will line up once you’re comparing apples to apples.
What This Means for Your 2026 Budget
A 2.0% increase isn’t going to change your lifestyle, but it does matter for budgeting.
If you’re living on a fixed income, every dollar counts. That extra $20 or $30 a month might not sound like much to someone working full-time, but it’s gas money. It’s a prescription refill. It’s breathing room.
And here’s the thing people don’t always realize: this increase stays with you. It doesn’t disappear next month. This is your new baseline, and next year’s increase will be calculated on top of this one.
Over a decade, these annual adjustments add up to real money. Without indexation, your CPP would lose about 20-30% of its purchasing power over ten years (depending on inflation). With it, you’re at least treading water.
For Younger Workers and Newcomers: Why This Still Matters to You
If you’re decades away from retirement, you might be wondering why you should care about CPP indexation.
Here’s why: CPP is built on contributions over time. Every paycheque where you see that CPP deduction is building toward your future monthly payment.
For newcomers to Canada: CPP isn’t a flat benefit you automatically get after living here long enough. It’s based on your contribution history. The longer you work in Canada and contribute, the stronger your eventual CPP payment becomes.
For students and first-job workers: Those CPP deductions might feel annoying now, but they’re literally buying you future income. And unlike savings you might spend, CPP can’t be touched until retirement.
For self-employed workers: You’re paying both the employee and employer portion through your tax return. It hurts more upfront, but the same rules apply—consistent contributions build stronger future benefits.
The pattern matters more than any single year. Work a full career in Canada with decent earnings, and you’ll end up with a CPP payment that actually helps. Work sporadically or at lower earnings, and your payment will reflect that.
What If Your Payment Doesn’t Show Up on January 28?
Direct deposit usually posts on the payment date, but banks process things differently. If January 28 comes and goes without your CPP showing up, here’s what to do:
First 24 hours: Wait. Sometimes bank processing runs a day behind, especially if the 28th falls on certain days of the week.
After 24 hours: Log into My Service Canada Account and confirm your banking information is correct. One wrong digit in your account number means your payment went nowhere.
If banking info is correct: Call Service Canada’s general inquiry line. Have your SIN ready. They can see if the payment was issued and where it went.
If you get paper cheques: Mail timing varies wildly depending on where you live. Urban areas might see cheques within 3-5 days; rural or remote areas can take longer.
The Bottom Line
Your January 28 CPP payment is going up by 2.0%. For most people, that means an extra $10 to $30 per month, depending on your current baseline.
It’s not dramatic. It won’t make headlines in your household. But it’s protection against inflation, and it becomes your permanent baseline for 2026.
If you want to see the exact increase before the money hits, check My Service Canada Account and compare your December versus January gross entitlement.
Otherwise, just watch your bank account on the 28th. The money will show up, and it’ll be a little bigger than last time.
And that’s worth something.
