Big news is coming for Canadian seniors in June 2025: Old Age Security (OAS) payments are set to increase by 194%, jumping from just over $727 to $1,970 per month. That’s a dramatic boost—and one that could change the financial future of many retirees across the country. But not everyone will automatically qualify, so the big question remains: Are you eligible?
In this article, we’ll walk you through what OAS is, what the increase means, who qualifies, how to apply, and how additional support like the Guaranteed Income Supplement (GIS) can further help low-income seniors.
Overview
OAS is one of Canada’s key retirement income programs. It offers monthly support to seniors based on their age and residency in Canada, not their work history. That makes it different from the Canada Pension Plan (CPP), which is based on earnings and contributions.
In June 2025, eligible seniors will begin receiving $1,970 per month, compared to the current base of $727.67 (or $800.44 for those over 75). That’s an extra $1,242 in monthly income—enough to make a major difference in covering food, rent, bills, and more.
How it Works
OAS is paid monthly to seniors 65 and over who have lived in Canada for at least 10 years after turning 18. The full payment is typically available to those who have lived in Canada for 40 years. The payments are taxable, and there is a clawback for higher-income seniors, but for most retirees, it’s a foundational piece of income.
Unlike other programs, you don’t need to have worked or contributed to qualify. It’s based on your time spent living in Canada and your age.
Increase
This 194% boost to the OAS is the biggest increase in the program’s history. It’s part of the government’s response to rising costs of living, especially for retirees who are often on fixed incomes.
Here’s a comparison of the new and old OAS payments:
| Age Group | Current OAS (2024) | New OAS (June 2025) | Increase |
|---|---|---|---|
| Age 65–74 | $727.67 | $1,970 | +$1,242 |
| Age 75 and over | $800.44 | $1,970 | +$1,169 |
This increase brings much-needed relief to seniors struggling with rising rents, groceries, and medical expenses.
Eligibility
To qualify for OAS, here’s what you need:
- Age: Must be 65 years or older
- Residency: Must have lived in Canada for at least 10 years after turning 18
- Status: Must be a Canadian citizen or legal resident
If you’ve lived in Canada for 40+ years after age 18, you’ll likely receive the full amount. If you’ve lived here for less time, the amount is prorated.
GIS
The Guaranteed Income Supplement (GIS) is an additional, non-taxable benefit for low-income seniors. It’s paid on top of OAS and helps those with little or no other income.
Key GIS facts:
- Single seniors may qualify if their income is under approx. $21,456
- Couples may qualify with a combined income under approx. $28,320
- GIS amounts are recalculated every July based on your income tax return
Even with the OAS increase, low-income seniors can still qualify for GIS and boost their total monthly support.
Application
Applying for OAS isn’t complicated, but you need to be prepared. Here’s how:
Step-by-step to apply:
- Check eligibility: Visit Canada.ca and confirm you meet the age and residency requirements
- Gather documents: You’ll need proof of status in Canada and details of your address history
- Apply online or by mail: Use your My Service Canada Account (MSCA) for the fastest option, or mail in the paper application
- Get confirmation: Service Canada will mail you a letter confirming when your payments begin
If you’re already receiving CPP, you may be automatically enrolled—so check your account or contact Service Canada to confirm.
Myths
Let’s clear up a few misconceptions that confuse many seniors:
Myth 1
Not true. OAS is available to all eligible Canadians aged 65+, regardless of income. However, higher-income seniors may face a clawback (repayment) if their income exceeds a set threshold.
Myth 2
OAS is taxable. You must report it on your income tax return, and it could affect your tax bracket depending on your other income sources.
Myth 3
Not always. If you’re already receiving CPP, you may be automatically enrolled for OAS. But it’s still smart to check with Service Canada to ensure your application is complete.
This upcoming OAS increase in June 2025 is a game changer for millions of Canadian seniors. Whether you’re receiving OAS already or planning to apply soon, now’s the time to get your paperwork in order and ensure you’re eligible. Combined with other supports like GIS, this change could mean a more comfortable and financially secure retirement.
FAQs
How much will OAS be in June 2025?
OAS will rise to $1,970 per month for eligible seniors.
Who qualifies for the OAS increase?
Canadians aged 65+ who meet residency rules and status criteria.
Is GIS still available after the OAS increase?
Yes, low-income seniors can still receive GIS in addition to OAS.
Do I need to apply for the OAS increase?
If you’re already enrolled, no. New applicants must apply.
Is the new OAS amount taxable?
Yes, OAS payments are taxable based on your total annual income.
