Relief is on the way for thousands of Canada’s most financially vulnerable seniors. Starting July 2025, the federal government will increase the Guaranteed Income Supplement (GIS) by up to \$1,395 annually—equivalent to an additional \$116.25 per month for those who qualify.
The move comes at a time when many older Canadians are grappling with rising grocery bills, rent hikes, and healthcare costs. Officials say the increase is part of a broader effort to protect seniors’ purchasing power and ensure that no one who worked a lifetime is left struggling in retirement
What the GIS Means for Canadian Seniors
The Guaranteed Income Supplement is a monthly, non-taxable payment that provides additional financial support to low-income seniors who already receive Old Age Security (OAS). It is designed for those with little or no other income from pensions, savings, or investments.
Unlike other benefits, the GIS does not need to be repaid and is not considered taxable income. It is essentially a top-up to the OAS pension, aimed at helping seniors cover essentials like food, shelter, and transportation.
For many seniors—especially those who did not have access to private workplace pensions—the GIS can make the difference between stability and financial hardship.
Why This Increase Matters in 2025
The cost-of-living crisis has hit fixed-income households particularly hard. Over the past two years, inflation has driven up the price of everyday essentials, while rental rates and utility bills have also soared. Seniors living solely on OAS and GIS have been left with little financial flexibility.
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With the new increase, the government hopes to bridge the affordability gap. By adding \$1,395 annually, recipients will have extra room in their monthly budgets to cover rising expenses without sacrificing other necessities.
Details of the \$1,395 Increase
Beginning in July 2025, the GIS top-up will be automatically applied to payments for those who already qualify. The adjustment will add up to:
- \$116.25 per month
- \$1,395 per year
This is not a one-time payment—the increase is a permanent adjustment to the GIS rate, ensuring long-term benefits for eligible seniors.
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Government officials have confirmed that no additional application will be required for current recipients, as the payment will be processed automatically based on existing eligibility data.
Who Qualifies for the Higher GIS?
To be eligible for the GIS increase in 2025, seniors must meet three primary requirements:
- Be aged 65 or older
- Receive Old Age Security (OAS)
- Have annual income below the federal income thresholds
The income limits for 2025 are:
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| Recipient Type | Maximum Annual Income |
|---|---|
| Single senior | Less than \$21,648 |
| Married/common-law (both receive OAS) | Combined under \$28,560 |
| Married/common-law (one receives OAS, one not) | Combined under \$51,408 |
These thresholds are based on net income as calculated by the Canada Revenue Agency (CRA) from your most recent tax return.
How the Increase Will Be Paid
The first increased GIS payments will be deposited starting July 2025. For current GIS recipients with up-to-date tax records, no action is needed—Service Canada and the CRA will automatically adjust the payment amounts.
Payment methods include:
- Direct deposit (fastest option)
- Mailed cheque (may take longer to arrive)
If you’re not yet receiving GIS but believe you qualify, you can apply:
- Online via your My Service Canada Account (MSCA)
- By mail using the official paper application form
- In person at any Service Canada location
Why Keeping Tax Information Updated Is Critical
Your GIS amount is recalculated every year based on your most recent tax return. If your income rises—due to part-time work, investment income, or a new pension—your GIS could decrease or even stop.
To avoid payment disruptions or overpayments, seniors are urged to:
- File taxes on time every year
- Report any income changes to Service Canada promptly
- Keep banking details updated to avoid missed deposits
Real-World Impact for Seniors
The \$1,395 annual increase may seem modest to some, but for low-income seniors, it’s a significant boost.
For example:
- A single senior paying \$800 per month in rent could now have an extra \$116.25 monthly to put toward groceries, medication, or transportation.
- A couple receiving OAS and GIS could use the additional funds to help cover rising heating costs in winter or manage unexpected medical expenses.
This change is particularly impactful for women and older immigrants, who statistically have lower retirement savings and are more reliant on public pensions.
How GIS Fits into Canada’s Retirement Income System
Canada’s retirement income system is made up of three main pillars:
- Old Age Security (OAS) – A universal monthly pension for Canadians aged 65+ who meet residency requirements.
- Canada Pension Plan (CPP) – A contributory program based on earnings and work history.
- Guaranteed Income Supplement (GIS) – An income-tested benefit that supports the lowest-income seniors.
The GIS plays a critical role in reducing senior poverty rates, which remain higher among single seniors, Indigenous elders, and those with limited work histories.
Government’s Broader Senior Support Strategy
The GIS increase is part of a wider package of measures to support older Canadians in 2025, including:
- Ongoing indexation of OAS and GIS to inflation, adjusted quarterly.
- Increased funding for senior housing projects.
- Expanded access to community health programs.
Officials say the focus is on ensuring seniors can age in dignity without being forced to choose between basic needs.
What Seniors Should Do Now
If you’re already a GIS recipient, no action is required to receive the increase—provided your tax return for 2024 is filed and processed.
If you believe you may qualify for the first time in 2025:
- Review the income limits for your household.
- Gather necessary documents, including proof of age, income, and residency.
- Submit an application through Service Canada before June 2025 to ensure payment begins in July.
The Bottom Line
The \$1,395 annual GIS increase will provide much-needed financial relief to low-income seniors across Canada starting in July 2025. For many, it represents more than just extra dollars—it’s a lifeline that will help cover essentials in an era of persistent inflation and rising living costs.
By boosting the GIS, the government is reinforcing its commitment to protecting vulnerable seniors and ensuring that retirement years can be lived with greater security and dignity.
5 Key FAQs
1. What is the Guaranteed Income Supplement (GIS)?
The GIS is a monthly, non-taxable payment for low-income seniors receiving Old Age Security (OAS).
2. How much is the 2025 GIS increase?
Up to \$1,395 annually, or \$116.25 per month, starting July 2025.
3. Who qualifies for the higher GIS in 2025?
Canadians aged 65+ receiving OAS with annual income below government thresholds.
4. Do I need to apply for the increase?
No, current recipients will get it automatically if their tax information is up to date.
5. How do I apply if I’m not already receiving GIS?
Apply online via My Service Canada Account, by mail, or in person at a Service Canada office.