Family allowance benefits will also increase by 2.85 per cent.
The increase concerns retirement, disability, surviving spouse’s, disabled contributor’s child and orphan’s pensions, affecting 2.2 million beneficiaries in total.
For example, the average retirement pension paid at age 65, which is currently $682 per month, will increase to $700 per month.
The average retirement pension paid at age 72, which is currently $1,083, will increase to $1,111 per month in 2025.
And those who claim their retirement pension from the age of 60 will see it increase from an average of $457 per month to $469.
Pensions paid by social security are indexed in January each year, according to the rate determined using the Consumer Price Index.
For workers contributing to the plan, the yearly maximum pensionable earnings will also increase to $71,300 from $68,500. Earnings beyond the maximum do not contribute more into the plan.
The basic exemption is unchanged — the first $3,500 of earnings in a year are not taxed — as is the maximum death benefit of $2,500.
Family allowance benefits will also increase in 2025, by 2.85 per cent to a minimum of $1,196 and maximum of $3,006 per child per year, not including bonuses for single-parent families.