Janice Lozano
The Canada Pension Plan (CPP) is a pension system that provides contributors and their families with partial earnings replacement in the case of retirement, disability or death. Generally, every person over the age of 18 who works in Canada outside of Quebec and earns more than $3,500 per year must contribute to the CPP. For students under 18, the CPP children's benefits provide monthly payments to the dependent children of disabled or deceased CPP contributors. Children under 18 receive a flat rate, while those aged 18-25 and enrolled in a recognised school or university receive either the full or half flat rate, depending on whether they are enrolled full-time or part-time.
| Characteristics | Values |
|---|---|
| Who contributes to CPP | Anyone above the age of 18 employed in Canada (outside of Quebec) contributes. |
| Contribution method | Employers deduct contributions from the first pay in the month after the employee turns 18. |
| Contribution amount | Calculated as a percentage of yearly earnings up to a maximum contribution amount for the year. |
| Children's benefits | Monthly payments to the dependent children of disabled or deceased CPP contributors. |
| Eligibility for children's benefits | Children under 18 receive a flat rate. Children aged 18-25 and in full-time attendance at a recognized school receive a flat rate. Children aged 18-25 in part-time attendance receive half of the flat rate. |
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What You'll Learn
Students under 18 don't pay CPP
Students under 18 do not pay CPP. The Canada Pension Plan (CPP) is a retirement savings plan for employed people over the age of 18 in Canada (excluding Quebec, where the Quebec Pension Plan, or QPP, applies).
The CPP is a joint federal and provincial retirement program that employees and employers pay into through regular paycheque contributions. Self-employed people contribute both the employee and employer rates. The CPP provides contributors and their families with partial earnings replacement in the case of retirement, disability, or death.
Children under 18 can receive CPP children's benefits, which provide monthly payments to the dependent children of disabled or deceased CPP contributors. Children aged 18-25 can also receive CPP children's benefits if they are in full-time or part-time attendance at a recognised school or university.
While students under 18 do not pay into the CPP, they may still receive benefits from it as dependent children of contributors.
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Students 18+ pay CPP via payroll deductions
The Canada Pension Plan (CPP) is a joint federal and provincial retirement program that provides contributors and their families with partial earnings replacement in the case of retirement, disability or death. The CPP is not only for Canadian citizens but is available to anyone working in Canada, except in Quebec, where the Quebec Pension Plan (QPP) is in place.
If you are employed and over the age of 18, you are automatically part of the CPP or QPP and contribute through payroll deductions. Contributions are calculated as a percentage of yearly earnings up to a maximum contribution amount for the year. For 2024, the contribution rate is 5.95% for both employee and employer, according to the Government of Canada.
Students over the age of 18 who are employed and therefore earning an income will contribute to the CPP or QPP through payroll deductions, as long as their employment income is not tax-exempt. Students under 18 do not contribute to the CPP.
Students aged 18-25 can also receive CPP children's benefits if they are in full-time or part-time attendance at a recognised school or university. These benefits provide monthly payments to the dependent children of disabled or deceased CPP contributors.
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Students 18+ can access CPP children's benefits
Students aged 18 and above can access Canada Pension Plan (CPP) children's benefits, but only if they are enrolled in a recognised educational institution full-time or part-time. These benefits are typically monthly payments made to the dependent children of disabled or deceased CPP contributors. The deceased contributor must have made sufficient contributions to the CPP for the benefit to be paid. A maximum of two children's benefits can be paid out per child.
If you are a student over 18 years of age, you must complete the Canada Pension Plan Child's Benefit Application and Declaration for a student over 18 years of age in Attendance at School or University (ISP1402) when you first apply for the benefit. You will need to complete this form at the beginning of every school year and when you return to school after a break from your studies.
If you are a dependent child between the ages of 18 and 25, you must be enrolled in a recognised school or university full-time or part-time to receive the children's benefit. The amount and duration of classes determine full-time or part-time school attendance, not whether the classes are taken during the day or evening. Evening classes and daytime classes have the same value when determining school attendance. If you are taking courses at more than one educational institution, the course hours may add up to full-time attendance. Each situation is considered, and you can contact Service Canada for details.
If you are a dependent child over the age of 18, the monthly payment will be disbursed directly to you. If you are eligible for CPP disability child benefits, you can expect to commence receiving benefits approximately eight weeks after submitting your application. If more than eight weeks have passed and you have not received any updates, you should contact CPP directly.
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Students 18+ can access survivor's benefits
In Canada, the Canada Pension Plan (CPP) children's benefits provide monthly payments to the dependent children of disabled or deceased CPP contributors. Children under the age of 18 receive a flat rate. Children aged 18 to 25 who are in full-time attendance at a recognized school or university also receive the flat rate, while those in part-time attendance receive half of the flat rate. The institution must be recognized by the province in which it is located and by the CPP. The amount and duration of classes determine full-time or part-time school attendance, not whether the classes are taken during the day or evening.
In the case of survivor benefits for children in the US, Social Security will usually only pay benefits for eligible children until age 18, unless the student is disabled or attending secondary school. Benefits typically end at age 18 but can last longer in some cases. Children of a late worker who had qualified for Social Security retirement benefits before passing away may receive survivor benefits if they are younger than 18, up to age 19 and 2 months and a full-time student up to grade 12, or any age if they have a disability that began before they reached age 22.
In the US, the Survivors' and Dependents' Educational Assistance (DEA) program, also called Chapter 35, may be able to help eligible individuals pay for school or cover expenses while training for a job. If eligibility was established before August 1, 2023, certain conditions must be met to use these benefits. Generally, individuals have up to 8 years to use their benefits before turning 26 years old. In some cases, individuals may still be able to use DEA benefits after turning 26, such as if they became eligible for DEA when they were between 18 and 26 years old or if their parent died during that time frame.
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Students 18+ can access disability benefits
In Canada, the Canada Pension Plan (CPP) children's benefits provide monthly payments to the dependent children of disabled or deceased CPP contributors. Children under the age of 18 receive a flat rate. Those aged 18 to 25 who are full-time students at a recognised school or university also receive the flat rate, while those in part-time attendance receive half of the flat rate.
In the US, the Social Security Administration (SSA) offers childhood benefits to claimants under the age of 18. When a beneficiary reaches 18, they must undergo an age-18 redetermination to continue receiving SSI. However, if the claimant is a full-time elementary or secondary school student, they can continue receiving benefits as normal.
In the UK, students with a learning difficulty, health problem, or disability can apply for the Disabled Students' Allowance (DSA). This provides support to cover study-related costs, which can be in addition to any student finance received. The allowance can be up to £27,783 a year for undergraduate and postgraduate students.
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Frequently asked questions
No, only those over 18 pay into the CPP.
CPP stands for Canada Pension Plan. It provides contributors and their families with partial earnings replacement in the case of retirement, disability or death.
Contributions are calculated as a percentage of your yearly earnings up to a maximum contribution amount. For 2024, the contribution rate is 5.95% for both employee and employer.
If you are over 18 and work in Canada (outside of Quebec), you automatically pay into the CPP through your paycheque. If you are under 18, you don't need to worry about it.
If your earnings are below $3,500 per year, you don't need to contribute to the CPP.
