Cost of Living Increase in Canada 2024 – Check Eligibility & Payment Date

The cost of living in Canada continues to rise, driven by factors like inflation and increasing prices for housing, food, and transportation. To help Canadians keep up, the federal government adjusts key social benefits like the Canada Pension Plan (CPP) and Old Age Security (OAS). In 2024, Canadians can expect an increase in these benefits to help alleviate some of the financial strain. Here’s everything you need to know about the Cost of Living Increase in 2024, including eligibility criteria and payment dates.

Cost of Living Increase in Canada 2024

Understanding the Cost of Living Increase

The Cost of Living Increase is an annual adjustment made to federal benefits based on the Consumer Price Index (CPI). In simple terms, the government tracks the prices of everyday items, like groceries and rent, to ensure that payments from programs such as CPP and OAS keep up with inflation.

In 2024, the increase is expected to be approximately 4%, meaning that those receiving government benefits will see a slight bump in their monthly payments. This is particularly important for retirees, low-income families, and individuals who rely heavily on these payments to meet their daily needs.

Benefits Impacted by the Cost of Living Increase

1. Canada Pension Plan (CPP):
   • Recipients aged 60 and above who have contributed to CPP during their working years will see an increase in their payments. For example, if you currently receive $1,000 per month, after the 4% increase, you’ll get $1,040.
   • The maximum pensionable earnings for CPP in 2024 have also risen from $66,600 to $68,500.
2. Old Age Security (OAS):
   • OAS, a benefit for Canadians aged 65 and older, will see a smaller but steady increase. Payments are based on your income and years of residency in Canada. The average monthly benefit will increase in line with inflation.
3. Guaranteed Income Supplement (GIS):
   • GIS, which provides additional income to low-income seniors, will also be adjusted to account for the rising cost of living.
4. GST/HST Credit:
   • Low- and middle-income families will continue to receive quarterly payments, with the next scheduled adjustment taking place in July 2024.
5. Canada Child Benefit (CCB):
   • Families with children under 18 can expect their CCB payments to increase. These payments are adjusted annually based on household income and inflation.

Payment Dates for 2024

The increased payments will begin in June 2024 for CPP and OAS recipients. Here’s a list of the upcoming payment dates:

• CPP and OAS: Payments will be issued on the 26th of each month.
• GST/HST Credit: Payments are made quarterly, with the next one scheduled for July 2024.
• Canada Child Benefit (CCB): Payments occur monthly, with the increase reflected from June 2024.

It’s important to track these dates, especially if you depend on these payments to cover essential living expenses.

Eligibility Criteria

1. Canada Pension Plan (CPP):
   • Must be a Canadian citizen or resident.
   • Must be 60 or older and already receiving CPP payments.
   • Contributions to CPP during your working years are required for eligibility.
2. Old Age Security (OAS):
   • Must be 65 or older.
   • Canadian citizens or legal residents who have lived in Canada for at least 10 years since turning 18 are eligible.
3. Guaranteed Income Supplement (GIS):
   • You must already be receiving OAS and meet the income thresholds set by the government.
4. GST/HST Credit:
   • Eligibility is determined by household income, and you must file a tax return to qualify.
5. Canada Child Benefit (CCB):
   • Eligibility is based on household income and the number of children under 18. You must file your taxes to continue receiving this benefit.

Practical Tips for Canadians

1. Plan for Retirement:
   If you’re approaching retirement age, consider applying for CPP and OAS benefits a few months before you turn 65 to avoid delays. You can apply through the Service Canada portal.
2. Review and Update Your Information:
   Ensure that your personal information is up to date with Service Canada and the Canada Revenue Agency. Incorrect or outdated information could delay your benefit payments.
3. Track Payment Dates:
   Mark the payment dates on your calendar, particularly if you rely on these benefits for your monthly budget. Knowing when the funds will arrive will help you manage expenses effectively.

Frequently Asked Questions (FAQs)

1. What is the Cost of Living Increase in 2024?

The Cost of Living Increase is an annual adjustment to government benefits to account for inflation. In 2024, this increase is set at 4%, which will be applied to CPP, OAS, and other benefits.

2. How much will I receive?

The amount varies depending on the benefit. For example, if you receive $1,000 per month from CPP, you will receive an additional $40 per month after the increase.

3. Do I need to apply for the increase?

No, the increases will be applied automatically if you are already receiving CPP, OAS, or other eligible benefits.

4. When will the payments start?

The increased payments will begin in June 2024, following the regular payment schedule.

5. What other benefits are affected by the Cost of Living Increase?

In addition to CPP and OAS, the GST/HST Credit and Canada Child Benefit are also impacted by the cost of living adjustments.