CPP Disability Eligibility 2020: 3-Step Checklist to See if You Qualify

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Last updated Mar 2, 2020

If you’re unable to work due to a disability, you might qualify for the Canada Pension Plan (CPP) disability pension. 

CPP disability eligibility

If you answer yes to this checklist:

  1. Are suffering from a severe and prolonged disability.
  2. Made enough contributions to the CPP.
  3. Are under the age of 65.

You might qualify for the CPP disability benefit. Eligibility depends on if you had contributed either of the following to the CPP:

  • Four of the last six years
  • Three of the last six years if you had been contributing for at least 25 years.

That is the minimum you must have contributed to being eligible for this disability benefit.

CPP disability benefits amount

For 2018, you could receive between the following amount:

  • Minimum of $485.20 per month
  • Maximum of $1,335.83 per month

Depending on how much you’ve contributed to CPP, you would receive between those two amounts. The average amount received is $917.13 per month.

CPP disability increase 2019

The federal government is increasing the amount of CPP owed by employees and employers starting in 2019. Because of this, the disability benefits amount you could receive will increase also. This only applies if you start receiving the payments after 2019. 

CPP disability lump sum payment tax

You might find yourself in a situation where you are receiving Long Term Disability (LTD) payments from an insurance company, and you also qualify for the CPP disability benefits amount. You might be surprised to find you could have to pay a CPP disability lump sum payment tax. If you’re faced with this tax bill, don’t panic. 

If you’ve been paying your taxes towards your LTD payments properly, there’s a good chance you will be ok. Contact Canada Revenue Agency (CRA), and find out if you could do the following:

  1. Receive a tax credit for the amount you’ve already paid for LTD payments.
  2. If they can spread out the CPP disability payments over several years to minimize your taxes owed.

You can contact the CRA at 1-800-959-8281


The CPP disability program is a fantastic supplement if you’re in need and qualify for it. If you think you qualify, apply for it today. If you had any other CPP questions, check out this link here for answers.

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<a href="https://wealthawesome.com/author/christopher-liew/" target="_self">Christopher Liew, CFA</a>

Christopher Liew, CFA

Creator of Wealth Awesome

A Canadian CFA Charterholder with 11 years of finance experience and the creator of Wealthawesome.com. Read about how he quit his 6-figure salary career to travel the world here.

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