How Much Can You Earn While Collecting CPP and OAS?

Working after you start receiving government pensions does not automatically mean losing your Canada Pension Plan (CPP) or Old Age Security (OAS). However, the two programs treat your income very differently. CPP has no earnings limit, while OAS can be reduced when your total income becomes high enough to trigger the recovery tax. There is no maximum amount you can earn from work while collecting CPP, and employment income does not reduce your CPP retirement pension. OAS also has no employment earnings limit, but your total net income matters. For income earned in 2026, the OAS recovery-tax threshold is $95,323. Income above that level can result in part of your OAS being repaid.

How Much Can You Earn While Collecting CPP?

You can earn any amount from employment or self-employment while receiving your CPP retirement pension. There is no CPP earnings limit and no rule that reduces your existing pension because your salary becomes too high. You also do not have to stop working to receive CPP.

Working can actually add to your CPP if you are under 70 and continue contributing. Eligible contributions made while receiving a CPP retirement pension can create a CPP Post-Retirement Benefit, which provides additional lifetime retirement income.

Your contribution obligations depend on age. From 60 to 64, CPP working beneficiaries generally continue contributing on pensionable employment or self-employment income. From 65 to 69, you can elect to stop making CPP contributions. Contributions stop at 70 even if you keep working.

The key point is that an earnings limit and a contribution limit are different things. You could earn $50,000, $100,000 or more from work without having your existing CPP retirement pension reduced because of those earnings. Your total income can still affect your income tax and other income-tested benefits.

How Much Can You Earn While Collecting OAS?

OAS works differently. You can continue working while receiving OAS, and there is no specific salary at which employment itself makes you ineligible. Instead, OAS is subject to an income-tested recovery tax, often called the OAS clawback.

For income earned in 2026, the recovery-tax threshold is $95,323 of net world income. If your applicable income exceeds that amount, the recovery tax is generally 15% of the amount above the threshold. The resulting adjustment affects the July 2027 to June 2028 OAS payment period.

For example, if the relevant calculation produced 2026 income of $100,000, that would be $4,677 above the $95,323 threshold. Applying the 15% recovery rate gives $701.55. That example is useful because it shows why the threshold should not be treated as an employment-income ceiling. Crossing it does not immediately eliminate your entire OAS pension.

There is also a timing issue worth watching. OAS recovery-tax deductions from July 2026 through June 2027 are based on 2025 income, when the threshold was $93,454. The current OAS recovery-tax table lists the income year and payment period separately, which helps avoid comparing earnings with the wrong threshold.

OAS Looks at More Than Your Employment Earnings

A common mistake is to read the $95,323 figure as meaning you can earn $95,323 from a job in 2026 before OAS is affected. The calculation is based on income for OAS recovery-tax purposes, not your salary alone.

Income can include employment and self-employment earnings as well as taxable retirement and investment income. CPP benefits are also taxable income, while registered retirement savings plan (RRSP) withdrawals can add to income. The OAS income rules therefore require you to look at your overall income rather than checking only your paycheques.

For someone collecting both pensions while still working, this means the same income can have very different consequences. Your job does not reduce CPP because CPP has no earnings test. However, employment income, CPP and other taxable income can push your total high enough for the OAS recovery tax to apply. CPP itself is taxable income, which is another reason to look at the full tax picture.

What Happens When Your Income Gets High Enough to Reduce OAS?

The recovery tax starts gradually rather than removing OAS all at once. For every dollar of applicable income above the annual threshold, 15 cents is subject to recovery until the pension is fully recovered.

For the 2026 income year, the estimated upper recovery threshold is $155,109 for someone aged 65 to 74 and $161,088 for someone aged 75 or older. At those levels, the OAS pension can be fully recovered. These 2026 upper thresholds are estimates until the applicable maximum OAS amounts are finalized.

The age difference exists because the maximum OAS pension is higher from age 75. The starting recovery threshold, however, is the same $95,323 for 2026. Your own OAS entitlement can also depend on factors such as how long you lived in Canada after age 18, so the exact point at which an individual pension is fully recovered can vary.

We would pay more attention to the starting threshold than the upper figure when planning work income. Once your projected income begins approaching the threshold, estimating your full-year income gives you time to understand the potential recovery tax rather than discovering it after filing your return.

What If You Also Receive the Guaranteed Income Supplement?

The Guaranteed Income Supplement (GIS) needs separate treatment because it is much more sensitive to income than the basic OAS pension. If you receive GIS and continue working, the GIS earnings exemption lets you earn up to $5,000 a year from employment or self-employment without those earnings reducing your GIS.

For employment or self-employment earnings between $5,000 and $15,000, 50% is exempt from the GIS income calculation. Other income rules still apply, and GIS eligibility depends on income and marital status. Therefore, someone receiving GIS should not use the OAS recovery-tax threshold to estimate how working will affect their benefits.

This is one of the more important differences in the public pension system. CPP has no earnings test, OAS has a relatively high recovery-tax threshold, and GIS is designed for lower-income seniors and has its own income rules. Treating all three programs as though they share one earnings limit can produce a very inaccurate estimate.

Working While Collecting Both CPP and OAS

There is no rule requiring you to choose between employment income and your public pensions. You can work while receiving CPP and OAS, and your CPP retirement pension will not be reduced because you keep working.

OAS requires more planning because total income matters. Someone expecting higher employment income should estimate salary, CPP, workplace pensions, RRSP withdrawals, taxable investment income and other relevant income together. That provides a much better picture of possible OAS recovery tax than looking for a single maximum salary.

You should also remember that CPP and OAS are separate programs. CPP and OAS work together as retirement income, but CPP is based largely on contributions and earnings history, while OAS is residence-based and subject to income recovery rules. That difference explains why working has no direct earnings penalty for CPP but can indirectly reduce OAS at higher income levels.

Other Questions About Earning Money While Collecting CPP and OAS

Does rental or investment income count toward the OAS threshold?

Yes. The OAS recovery calculation is not limited to employment income. Rental income and taxable investment income can contribute to the income used to determine whether OAS recovery tax applies.

Can RRSP withdrawals cause an OAS clawback?

Yes. Taxable RRSP withdrawals add to income and can help push your income above the OAS recovery threshold. A large withdrawal can therefore affect OAS even when your employment earnings are relatively modest.

Does your spouse’s income count toward your OAS clawback?

The OAS recovery tax is based on your individual income rather than your combined household income. GIS works differently because marital status and, in many cases, combined income affect its income thresholds.

Can you work after age 70 while receiving CPP and OAS?

Yes. There is no requirement to stop working at 70 to keep receiving CPP or OAS. CPP contributions stop at 70, however, so employment after that age no longer creates additional CPP Post-Retirement Benefits.

Where should you check whether your income could affect OAS?

Start with your projected total income rather than your employment earnings alone. The OAS recovery-tax thresholds show the applicable income year and payment period. If your income is approaching the threshold, estimating the full year’s taxable income before making large withdrawals or other income decisions can prevent surprises.