Seniors across Canada who rely on the Old Age Security (OAS) program can expect a small but welcome OAS increase in 2025, beginning this summer. The Government of Canada has officially announced that OAS benefits will rise by 1.0% for the July to September 2025 quarter, offering modest relief as the cost of living continues to climb.
Here’s what you need to know about the OAS increase, why it’s happening, and how it may affect your monthly payments.
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How Much is the OAS Increase in 2025?
While there is no change to the current payment amounts for the April to June 2025 period, seniors will see their monthly benefit increase by 1.0% starting in July.
This adjustment reflects changes in the Consumer Price Index (CPI) — a measure used by the federal government to track inflation and cost of living changes. The latest data shows a 2.3% rise in the CPI from July 2024 to July 2025, with a 1.0% increase now applied for the upcoming quarter.
Group of these Canadian Retirees Got Early CPP Payment Cheques in May 2025
OAS Payment Update Schedule 2025
OAS benefits are reviewed and adjusted quarterly, in January, April, July, and October. These adjustments ensure that seniors maintain their purchasing power despite inflation.
- April–June 2025: No increase (CPI was flat)
- July–September 2025: +1.0% increase
- Next review: October 2025 (based on CPI from May–July 2025)
What Will Your OAS Payment Look Like After the Increase?
The exact dollar amounts for OAS payments for July–September 2025 will be officially published at the beginning of July on the federal government’s website. However, here are the current maximum payment amounts (before the July increase):
| Age Group | Monthly OAS (April–June 2025) |
|---|---|
| 65 to 74 | $727.67 |
| 75+ | $800.44 |
A 1.0% increase would raise payments to approximately:
- 65 to 74: ~$734.95/month
- 75+: ~$808.44/month
Note: These estimates are subject to confirmation in July.
How OAS Increases Are Calculated
The government uses the Consumer Price Index (CPI) to adjust OAS benefits. The process is simple:
- If the CPI increases, OAS payments go up
- If the CPI decreases, OAS payments remain the same
- Payments are never reduced, even if inflation falls
This ensures a safety net for Canadian seniors, particularly those on fixed incomes.
Why Your OAS Payment Might Not Have Changed Yet
Some seniors may be surprised to hear their April–June 2025 OAS payments haven’t changed. That’s because the CPI for the reference period (November 2024 to January 2025) decreased slightly, meaning no increase was warranted for that quarter.
Looking Ahead: Will There Be Another OAS Increase in 2025?
The next CPI review in October could result in another OAS increase in late 2025, especially if inflation continues to climb. Seniors are encouraged to monitor the federal government’s official updates or sign up for notifications via My Service Canada Account (MSCA).
Tips for Seniors: Make the Most of OAS in 2025
- Check Eligibility for GIS: Low-income seniors may qualify for the Guaranteed Income Supplement (GIS), which is added to OAS payments.
- File Taxes On Time: OAS and GIS eligibility is based on your income tax return. Late filing may delay your payments.
- Sign Up for Direct Deposit: Get your OAS payments faster and more securely by setting up direct deposit through your MSCA account.
Final Thoughts on the OAS Increase 2025
The OAS increase in 2025 may be modest, but it still provides some inflation protection for seniors coping with rising costs. As inflation stabilizes, these quarterly adjustments are key to maintaining seniors’ financial well-being.
Stay tuned for the official OAS payment rates in early July, and ensure your Service Canada information is up to date to receive the full benefit without interruption.