$1,970 OAS Payment Coming in June 2025 After Massive 194% Rise

If you live in Canada and are 65 years of age or older, then there is a big and relieving news for you. From June 2025, the Government of Canada is going to increase the Old Age Security (OAS) payment by 194%. Till now, where OAS payment is about $727.67 per month, now it will become $1,970 directly. That is, every month you will get about $1,242 more.

This change is a huge step towards making the lives of millions of elderly people financially secure. But not everyone will get the benefit of this increased amount. There are some important conditions for this. In this article, we will know in detail what OAS is, how it works, who is eligible for it, how to apply, and what other benefits you can get from GIS (Guaranteed Income Supplement).

What is OAS and how does it work?

Old Age Security i.e. OAS is a main pension scheme of Canada, which provides financial assistance every month to citizens aged 65 years or above. Its most special aspect is that it is not based on your job or income. Meaning, even if you have not worked, if you have been living in Canada for a long time, then you can be eligible for it.

Conditions to get OAS:

• You must be at least 65 years of age
• You must have spent at least 10 years in Canada after the age of 18
• You are a Canadian citizen or a permanent resident

If you have spent 40 years or more in Canada after the age of 18, then you will get full payment of OAS. If you have spent less time, then you will get partial (pro-rated) payment of OAS.

This amount is taxable, that is, you have to show it in your income tax return. If your total annual income exceeds a certain limit, you may have to return some part of it, which is called ‘OAS clawback’.

Historic increase of 194% in OAS – why and how much difference will it make?

In view of inflation and rising cost of living, the Canadian government has decided to make the biggest increase in OAS till date. After this increase, which will come into effect from June 2025, OAS payment will directly increase from $727.67 to $1,970 per month.

Let’s take a look at who will benefit from this increase:

Age group	Current OAS (2024)	New OAS (June 2025)	Increase
65 to 74 years	$727.67	$1,970	+$1,242
Above 75 years	$800.44	$1,970	+$1,169

With this increased amount, senior citizens will be able to easily manage their daily needs such as rent, food, medicines, transport and other expenses.

For example:

Mrs. Rama, who lives in Toronto and is single, has a rent of $900, and spends $400 on food and medicines. Earlier it was difficult to survive on her OAS. Now with the increased OAS, her situation will be much better.

Mr. Baljit Singh, who has no income other than pension, will now be able to manage his expenses without depending on his children.

GIS (Guaranteed Income Supplement) – more support for low-income earners

If you have a very low income, you may be eligible to receive GIS alongside OAS. GIS is an additional non-taxable allowance that is only available to low-income seniors.

Eligibility for GIS:

• If you live alone and your combined annual income is less than about $21,456
• If you live with your partner and your combined income is less than about $28,320

The amount of GIS is reset each year in July based on your previous year’s income tax report.

It is worth noting that despite receiving an increased amount of OAS, many seniors will remain eligible for GIS. This means that both schemes combined could provide them with even more monthly support.

How to apply? (Process to Apply OAS)

If you are 64 years or older, now is the time to apply.

Easy Application Process:

• Check eligibility – Visit the Canada.ca website to see if you are eligible.
• Have the necessary documents ready – such as your citizenship or PR card, address history, etc.
• Apply online – The fastest way to apply is to apply through My Service Canada Account (MSCA).
• Apply by mail – If you are unable to apply online, you can also fill out the form and send it by mail.
• Get a confirmation letter – You will receive a letter from Service Canada telling you when your payments will start.

If you are already receiving CPP (Canada Pension Plan), you may have been automatically registered for OAS. Still, make sure to log in to MSCA and check once.

Read more: CRA Confirms $2,600 Direct Deposit for June – Are You Eligible?

Some common misconceptions to clear up

Myth 1: OAS is not available to everyone

Fact: OAS is available to everyone who is 65 years or older and has lived in Canada for at least 10 years. It is not based on income, but those with higher incomes may have to repay some of it.

Myth 2: OAS is tax-free

Fact: No. OAS is taxable income. You have to show it on your annual income tax return. This can affect your tax bracket.

Myth 3: If you are receiving CPP, you will automatically receive OAS

Fact: In some cases, it may be so, but not necessarily. So contact Service Canada yourself to make sure that your OAS application is active.

Read more: 2025 Old Age Security Boost in Canada: Who Qualifies for $2,350?

Time to come – A ray of hope for seniors

This decision of the government clearly shows that it is working towards ensuring financial security for senior citizens. is serious about this. Especially for those who have no other income and are completely dependent on the government.

Now that the amount of OAS will be $1,970 per month and supports like GIS will also be available, there is hope for a secure and self-reliant retirement life for the elderly.

Frequently Asked Questions (FAQs)

Conclusion

The 194% increase in OAS payments in June 2025 is a huge relief for Canadian seniors. It will not only strengthen their financial position but also increase their sense of self-reliance.

If you are eligible for OAS or GIS, learn about the application process today and keep the necessary documents ready. This increased assistance can make your life even easier in the future.

Now you too can take advantage of this change and move towards a better, secure retirement.