Posted by In April 2025, the Canadian government announced an annual increase of $3,900 to the Old Age Security (OAS) benefits, encompassing the Guaranteed Income Supplement (GIS), Allowance, and Survivor’s Allowance.
This enhancement aims to support seniors facing rising living costs due to inflation, increased housing expenses, and higher healthcare costs.
However, it’s important to note that this increase will not be applied in the first and second quarters of 2025.
OAS Benefit Overview
The OAS program provides monthly payments to Canadian citizens or legal residents aged 65 and over. The amount received depends on factors such as age, residency duration, and income level.
Eligibility Criteria
- Age Requirement: Individuals must be 65 years or older.
- Residency Requirement: Applicants should have resided in Canada for at least 10 years after turning 18.
- Income Consideration: OAS payments are subject to a recovery tax (clawback) if the individual’s net annual income exceeds a certain threshold. For 2025, the threshold is $86,912 for individuals aged 65–74 and $148,179 for those 75 and over.
READ MORE: CRA Announces Enhanced Benefits- Up To $3,800 Monthly For Qualified CPP And OAS Beneficiaries
2025 OAS Payment Schedule
OAS payments are typically made on the third-to-last business day of each month. For 2025, the payment dates are as follows:
| Month | Payment Date |
|---|---|
| January | January 29, 2025 |
| February | February 26, 2025 |
| March | March 27, 2025 |
| April | April 28, 2025 |
| May | May 28, 2025 |
| June | June 26, 2025 |
| July | July 29, 2025 |
| August | August 27, 2025 |
| September | September 25, 2025 |
| October | October 29, 2025 |
| November | November 26, 2025 |
| December | December 22, 2025 |
Details of the $3,900 Annual Increase
The $3,900 annual increase is intended to provide additional financial support to seniors. However, according to official communications from the Canada Revenue Agency (CRA), this increase will not be applied in the first and second quarters of 2025.
Therefore, seniors should anticipate the enhanced payments starting from the third quarter of 2025.
Guaranteed Income Supplement (GIS) and Other Benefits
In addition to the OAS pension, seniors with low income may be eligible for the GIS, Allowance, or Allowance for the Survivor.
These benefits are designed to provide extra financial assistance. Eligibility and payment amounts vary based on income and marital status.
Payment Amounts for April to June 2025
For the period of April to June 2025, the maximum monthly payment amounts are as follows:
- OAS Pension:
- Ages 65–74: Up to $727.67 per monthi
- Ages 75 and over: Up to $800.44 per month
- GIS:
- Single seniors: Up to $1,086.88 per month
- Married/common-law (both receiving OAS): Up to $654.23 per person per month
- Allowance:
- Up to $1,381.90 per month for individuals aged 60–64 with a spouse receiving GIS and full OAS
- Allowance for the Survivor:
- Up to $1,647.34 per month for widowed individuals aged 60–64
These amounts are subject to change based on annual income and are reviewed quarterly.
The $3,900 annual increase in OAS benefits reflects the government’s commitment to supporting seniors amid rising living costs.
However, with the delay of this increase until the third quarter of 2025, seniors should plan their finances accordingly.
Staying informed about payment schedules and eligibility criteria ensures that seniors can maximize their benefits and maintain financial stability.
FAQs
Will the $3,900 increase be applied retroactively for the first half of 2025?
No, the increase will not be applied retroactively. It will commence from the third quarter of 2025.
How can seniors ensure they receive their payments on time?
Setting up direct deposit with Service Canada ensures timely payments. It’s also important to keep personal and banking information updated.
Are OAS payments taxable?
Yes, OAS payments are considered taxable income and may be subject to a recovery tax if income thresholds are exceeded.