Canadian seniors are set to receive a welcome boost in July 2025 as the federal government adjusts the Old Age Security (OAS) pension to reflect inflation and the rising cost of living. For some retirees, the total monthly payment — including OAS and other federal supplements — could reach up to \$1,860.
While the figure has generated excitement, not every senior will see that maximum amount. The top tier applies to specific groups — mostly older, low-income Canadians aged 75 and over who also qualify for other government supplements like the Guaranteed Income Supplement (GIS) or Allowance programs.
With Canada’s aging population facing higher grocery, housing, and healthcare costs, the quarterly OAS adjustment offers a timely, albeit modest, financial cushion. Here’s a complete breakdown of what’s changing, who qualifies, and when you can expect your July 2025 payment.
Quarterly OAS Increase Matches Inflation Pressures
The Employment and Social Development Canada (ESDC) conducts an OAS review every quarter to ensure payments keep pace with inflation. The July 2025 increase represents:
- A 1% rise compared to April–June 2025
- A 2.3% increase compared to July–September 2024
This automatic adjustment is tied to the Consumer Price Index (CPI), which measures changes in the cost of essential goods and services. Over the past year, Canadian seniors have faced notable price increases in food, fuel, prescription drugs, and utilities, prompting the latest upward revision.
The aim is simple: ensure that seniors do not lose purchasing power in a rising-cost environment.
Understanding the \$1,860 Figure
Many headlines highlight the \$1,860 monthly amount, but it’s important to understand what’s included in that figure.
The OAS pension alone — for seniors aged 65–74 — maxes out at \$734.95 per month. For those 75 and older, the maximum OAS is \$808.45 per month, reflecting a permanent 10% increase introduced in 2022 for this age group.
The \$1,860 figure is reached only when OAS is combined with one or more supplemental programs, such as:
- Guaranteed Income Supplement (GIS) – For low-income seniors
- Allowance – For low-income spouses or common-law partners
- Allowance for the Survivor – For widowed low-income seniors
For example:
| Age Group | OAS Payment | Extra Government Support | Total Monthly Payment |
|---|---|---|---|
| 65–74 | Up to \$734.95 | N/A | Up to \$734.95 |
| 75+ | Up to \$808.45 | GIS / Allowance / Survivor Allowance | Up to \$1,860 |
OAS Eligibility – The Basics
To receive any OAS payment, you must meet basic eligibility criteria:
- Be 65 years or older
- Be a legal resident of Canada at the time of approval
- Have lived in Canada for at least 10 years after turning 18
Full OAS Pension
To receive the full OAS pension, you must have lived in Canada for at least 40 years after the age of 18.
Partial OAS Pension
If you have lived in Canada for between 10 and 39 years after turning 18, you will receive a partial pension calculated as:
Years lived in Canada ÷ 40 × Maximum OAS amountInternational Agreements
Canada has social security agreements with several countries. These agreements allow certain seniors who have lived or worked abroad to still qualify for full or partial OAS, provided they meet specific residency or contribution requirements.
Who Qualifies for the Maximum \$1,860?
The top combined monthly payment applies to seniors who:
- Are aged 75 or older
- Have lived in Canada for at least 10 years (for OAS)
- Meet the low-income threshold
- Are receiving full OAS pension
- Qualify for GIS or Allowance programs
For most Canadians aged 65–74, the monthly payment will remain closer to \$734, unless supplemented by other programs.
OAS Supplements Explained
Guaranteed Income Supplement (GIS)
- Max Monthly Amount: Up to \$1,086 for a single senior
- Who Qualifies: Low-income OAS recipients
- Calculation: Based on your income and marital status
Allowance
- Max Monthly Amount: Up to \$654.23
- Who Qualifies: Low-income seniors aged 60–64 who are spouses/common-law partners of OAS and GIS recipients
Allowance for the Survivor
- Max Monthly Amount: Up to \$1,647
- Who Qualifies: Low-income widowed seniors aged 60–64 who are not remarried or in a new common-law relationship
Payment Timeline – When You’ll Get Your Money
The July 2025 OAS payment is scheduled to be deposited on July 29, 2025 (subject to official confirmation). Seniors enrolled in direct deposit will see the funds in their bank accounts on that date.
Those receiving paper cheques should allow additional time for Canada Post delivery.
How to Apply for OAS and Supplements
If you have not yet applied for OAS, you can:
- Apply Online – Via your My Service Canada Account (MSCA).
- Apply by Mail – Using the paper application form available from Service Canada.
- Automatic Enrollment – Some seniors are automatically enrolled based on their tax records.
For GIS and other supplements, separate applications may be required — though many can be initiated online through MSCA.
How the Quarterly Review Works
The ESDC reviews OAS amounts four times per year — in January, April, July, and October. Adjustments are based on the average CPI for the previous quarter.
If the CPI rises, OAS payments are increased accordingly. If inflation falls, OAS amounts remain the same — they never decrease.
Why This Matters for Canadian Seniors
With Canadian inflation still above pre-pandemic norms, the cost of essentials like housing, groceries, and medication continues to strain fixed-income households. The OAS adjustment, along with GIS and other allowances, plays a vital role in helping seniors maintain a basic standard of living.
For some, the extra few dollars per month might mean:
- Covering rising utility bills
- Affording healthier food options
- Filling prescription medications without skipping doses
- Managing transportation costs more easily
Planning Ahead – Maximizing Your Benefits
Seniors can take several steps to ensure they receive the maximum available OAS and supplements:
- File taxes on time every year, even with no income
- Report changes in marital status promptly to Service Canada
- Maintain updated banking information for direct deposits
- Check eligibility for provincial/territorial benefits that can be combined with OAS
Recap – Key Takeaways
- Maximum OAS Alone: \$734.95 (65–74) / \$808.45 (75+)
- Maximum Combined Payment: \$1,860 (OAS + GIS/Allowance)
- July 2025 Payment Date: Expected July 29, 2025
- Eligibility: Age 65+, Canadian residency requirements, income-tested for supplements
- Quarterly Adjustment: July 2025 payments up 1% from April–June 2025