Solo Biz Soft Editorial Team Old Age Security just went up for the fourth quarter of 2026, and the payment lands October 28. If you’re employed in Canada this is a straightforward bit of good news for retirees in the family. If you’re self-employed, it’s also a good prompt to get clear on a mix-up that trips a lot of people up: OAS and CPP are not the same program, they don’t adjust on the same schedule, and only one of them is something you’re actively paying into right now.
What actually increased, and why
OAS uses a quarterly adjustment mechanism, which lets it respond to inflation faster than most other benefits. For October to December 2026 it rose 1.4%, bringing the year-over-year increase to roughly 3% and pushing the maximum monthly amount past $762 for people aged 65 to 74, and above $838 for those 75 and older. CPP, by contrast, only recalculates once a year in January — so despite showing up in the same news cycle, there’s no CPP increase happening this month.
Why this is a different conversation if you’re self-employed
OAS is funded from general government revenue, not from a payroll deduction, so there’s nothing about it you’re actively contributing to today. CPP works the opposite way: the CRA treats self-employed people as both the employer and the employee, so you pay both portions yourself — 11.9% combined on pensionable earnings between $3,500 and $74,600 for 2026, plus an additional CPP2 contribution of 8% combined on earnings between $74,600 and $85,000. An employee splits this with their employer; as a freelancer, the full amount comes straight out of your own net income. That’s the real planning conversation for the self-employed — not this month’s OAS news specifically, but making sure your CPP contributions are accounted for in what you set aside through the year.
Frequently asked questions
Did CPP increase this month too?
No. CPP only adjusts once a year, every January, regardless of what OAS does on its quarterly schedule.
Do self-employed Canadians pay into OAS?
No. OAS isn’t funded by individual payroll contributions the way CPP is — it comes from general government revenue, so there’s no self-employed OAS contribution to plan around.
What's CPP2?
An additional CPP contribution introduced on a second, higher band of earnings (between $74,600 and $85,000 for 2026), on top of the base CPP contribution. Self-employed people pay both portions of this too.
More free tools: All free tools
This article is general information, not financial or tax advice, and reflects Canadian federal benefit programs, not any other country’s system. Payment amounts and contribution rates can change — confirm current figures at canada.ca before relying on them.