In 2024, Canadians will see several cost of living adjustments to key benefits such as the Canada Pension Plan (CPP), Old Age Security (OAS), the GST/HST credit, and the Canada Child Benefit (CCB). These changes are intended to help Canadians keep pace with inflation and rising costs of living.
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The Cost of Living Increase is a response to inflation, which has driven up the prices of essential goods like food, housing, and transportation across Canada. The federal government uses the Consumer Price Index (CPI) to adjust benefits to help citizens maintain their purchasing power despite rising prices.
Canada Pension Plan (CPP) Increase
The CPP benefits are indexed to inflation and adjusted annually based on the Consumer Price Index (CPI). For 2024, CPP payments will increase by 4%, reflecting the higher cost of living. The maximum pensionable earnings will rise from $66,600 to $68,500, meaning retirees and other beneficiaries will see a noticeable rise in their monthly CPP payments.
Old Age Security (OAS) Increase
OAS payments are adjusted quarterly based on the CPI. In 2024, OAS recipients can expect a higher monthly payment due to inflation. For the October to December 2024 quarter, OAS benefits will increase by 1.3%, contributing to a total annual increase of 2.8% over the past year. These adjustments ensure that seniors’ purchasing power remains stable despite rising costs.
GST/HST Credit Increase
The GST/HST credit, which provides tax-free quarterly payments to low- and modest-income individuals and families, is also indexed to inflation. In 2024, eligible Canadians will see an increase in their GST/HST credit payments. The maximum amount you can receive until the end of June 2024 is $519 if you’re single and $680 if you’re married or have a common-law partner.
$300 Canada Federal Payment 2024 – Are You Jobless? When will it be paid?
Canada Housing Benefit 2024: Who is Eligible for $500 & How to Apply?
$1,200 for Low-Income Seniors: Fact Check, Eligibility, and Payment Dates
Extra GST Payment 2024: When will it be paid & Who is Eligible?
Grocery Rebate Bill (C-46): What Is It & Who Is Eligible?
CPP Payment Dates 2024, Increase, Disability Benefit, CPP Amount & Limit
Canada Child Benefit (CCB) Increase
The CCB is adjusted every July to account for inflation. In 2024, families receiving the CCB will see a higher payment amount, reflecting the increased cost of raising children. For the 2024–25 benefit year, families can receive up to $7,787 per child under the age of 6 and $6,570 per child aged 6 through 17, representing an increase of 4.7% from the previous year.
The cost of living increases for 2024 in Canada are set to positively impact key benefits like CPP, OAS, GST/HST credits, and the CCB. These adjustments aim to help Canadians manage the financial pressures of inflation, ensuring that their benefits retain their value over time. Staying informed about these changes will allow recipients to better plan their finances for the year ahead.