The CRA is going to implement OAS Increase 2025 soon and eligible recipients will be having increased Old Age Security Payment from the 1st of January 2025. Every year the Canada Revenue Agency increases OAS payments so that senior citizens can have inflation-adjusted benefits after quarterly increases. The existing beneficiaries will have OAS Increase Payment 2025 after back-to-back raises starting from January, then in April and July, and finally in October 2025 so that the recipients can have additional financial help to make up for the rising cost of living and inflation rates in the upcoming year. Check out the New OAS Increase 2025 Payment and How to Apply for OAS Payment in 2025.
OAS Increase 2025
The Old Age Security Beneficiaries will be getting New OAS Increase Payment from January 2025. As of now the exact payment amount for the upcoming year cannot be disclosed as the inflation rates in the last quarter of 2024 will determine the prospective increase. For 2024, the annual increase in OAS payment in all four quarters remains around 3.7% as per the official sources while for 2025, the base increase is going to remain around 3% to 3.5% from January to December period. The Annual Net World Income will also increase in 2025. From July 2024 to June 2025, the beneficiaries who have a net income of more than $86,912 will get reduced OAS Payments while from July 2025 to June 2026, the Annual Net World Income is going to be $90,997.
In case, your gross income is higher than net world income, the excess income will cause a reduction in the base OAS Payment amounts. The 15% of the excess income will be reduced from the annual OAS Payments and individuals have to repay the payment to the Canada Revenue Agency. Along with the OAS Payment Increase, the Maximum Income Recovery Threshold will also increase in 2025. As of now, the Recovery Threshold is $142,609 for those 65 and older and $148,179 for those older than 75 till June 2025. From June 2025 to July 2026, the threshold is going to be $148,065 for those 65 and older and $153,771 for those older than 75 or 75.
OAS Increase 2025 Quick Details
| Title | OAS Increase 2025 |
| Country Name | Canada |
| Administrative Authority | Canada Revenue Agency |
| Category | Old Age Security Payment |
| Percentage Increase 2025 | 3% to 3.5% |
| Expected Maximum Payment | $813.7 |
| Accessible to | Seniors above Age 65 or Older |
| Official Website | www.canada.ca |
OAS Increase 2025 Eligibility Criteria
- An individual must have a Social Insurance Number
- Have stayed in the country for more than 10 years that too after 18 years of age
- Have permanent residency status
- Completed the age of 65 on the 1st of the month availing of the benefits
- Have been a tax-purpose resident of the country
- If you have stayed in the country for less than 10 years, then you will receive partial OAS Payment in 2025
Employment history is not a determining factor as of now and the benefit will be determined by the age of the beneficiary. If the financial condition is quite critical and also has a disability, then the CRA will release the payment early so that individuals can meet their daily life needs. Beneficiaries can choose to work while getting the New OAS Increase Payment and can delay taking the benefit till the age of 70.
OAS Increase 2025 New Payment Amount
There will be around a 3% to 3.5% increase in the OAS payment from the 1st of January 2025 for all the beneficiaries. The maximum benefit amount after the new increase is $813.7 per month for those who have reached the age of 75 or older. Residents who are between the ages of 65 and 74 will be having $739.54 from the 1st of January 2025. Individuals must note that as of now, the official sources have not confirmed the exact increase, and only the expected increase can be reviewed for now.
Given the current inflation levels and cost of living in Canada, beneficiaries are expected to receive up to 3.5% of the increase in payments. The New OAS Payment will be distributed from 2025 and will remain the same for the first quarter of 2025. And in the whole of 2025 in all four quarters, the payment will increase by 3.5% as per the current data.
How to Apply for New OAS Payment 2025?
- Sing in to “My Service Canada Account”
- Apply for OAS
- Choose the time you want to start the payments
- Once the applicant has completed 64 years and one month of age, then they can apply
- Provide the essentials such as social insurance number, legal resident documents, and others
- Make sure all the provided details are accurate and updated
- Once the application is done, send it to the CRA
- The CRA will inform the applicants about the status of the application
- It usually takes around 120 days to get approval
- Then the New OAS Payment 2025 will start from the day, you have selected
- If the applicant does not receive any confirmation letter check out the email box if the CRA has sent an email regarding the delay in the process
For further updates regarding the OAS Increase 2025 News & Updates, please visit the official website of the CRA, applicants can also visit the offices to know more.
| SD News Home | Click Here |
Raul joined SD News team in 2021, bringing his experience as a editor-cum writer on global financial & trending topics. From a young age, Raul developed a keen interest in Finance, which propelled his to pursue an undergraduate degree in global and international studies. Raul skillfully combines his knowledge of political economy and finance to empower readers with crucial insights.