John Hughie
Old Age Security (OAS) continues to be a foundational support system for Canadian seniors. In a major announcement, the Government of Canada has officially confirmed an increase in OAS payments starting August 2025, with eligible recipients receiving $727 or $800, depending on their age group.
This boost comes at a critical time to help retirees manage rising living costs.
OAS Pension Increase: What’s Changing in August 2025?
Effective Monday, August 24, 2025, seniors aged 65 and above will see a noticeable jump in their monthly OAS payments. Here’s the breakdown:
| Age Group | New Monthly OAS Payment | Reason for Increase |
|---|---|---|
| 65 to 74 years | $727 | CPI-based inflation adjustment |
| 75 years and above | $800 | CPI + Additional 10% permanent top-up |
These increases are based on the Consumer Price Index (CPI), ensuring that pension payments keep up with the cost of living.
For those aged 75 and above, an additional 10% top-up has been implemented to better support their growing health and living expenses.
Understanding OAS: What Makes It Different from CPP?
The Old Age Security (OAS) program is a monthly taxable benefit paid to seniors aged 65 and older, regardless of work history.
Unlike the Canada Pension Plan (CPP), which is based on lifetime contributions through employment, OAS is not contribution-based. Here’s how they differ:
- CPP: Based on your employment contributions.
- OAS: Available to all eligible seniors, even if they never worked.
Four Key Components of the OAS Program
- Base OAS Pension – The standard monthly payment for all eligible seniors.
- Guaranteed Income Supplement (GIS) – For low-income OAS recipients.
- Allowance – For individuals aged 60-64 whose spouse receives OAS and GIS.
- Allowance for the Survivor – For widowed individuals aged 60-64.
Why Was the OAS Pension Increased in August 2025?
The government conducts quarterly reviews of OAS payments using the CPI, a metric tracking the price of essential goods and services like food, housing, and medical supplies.
Key reasons for the hike include:
- Increasing cost of living
- Need for stable income for elderly Canadians
- Combatting senior poverty
- Supporting health, rent, and basic needs
Who Is Eligible for the $727 or $800 OAS Payment?
To qualify for the increased OAS pension in August 2025:
- Minimum Age: Must be 65 years or older by August 30, 2025.
- Citizenship: Must be a Canadian citizen or permanent resident.
- Residency: Lived in Canada for at least 10 years after age 18.
- Higher Payment Eligibility: Must be 75+ years old for the $800 rate.
- Income Limit: If income exceeds $90,997 annually, benefits may be reduced (OAS clawback rule).
- Payment Method: Automatically deposited to your bank account (no reapplication needed if you’re already enrolled).
How to Ensure On-Time OAS Payments?
To avoid delays and receive your payment on the confirmed date, follow these tips:
- Update your banking information via the OAS portal.
- Check your My Service Canada Account for issues or updates.
- Contact Service Canada if you don’t receive payment by August 24, 2025.
The $727 and $800 OAS pension hikes coming in August 2025 signal the government’s ongoing effort to support senior citizens facing inflation and rising expenses.
These revised payments not only reflect current economic conditions but also ensure that Canadians aged 65 and above can live with dignity, stability, and independence.
Make sure you’re eligible, your details are up to date, and keep an eye on your account by August 24.
FAQs
Do I need to apply again to receive the increased OAS payment in August 2025?
No. If you’re already receiving OAS and meet the age and residency criteria, the increased amount will be deposited automatically.
Why do seniors over 75 receive more than those aged 65–74?
The additional 10% top-up is a permanent increase aimed at helping older seniors meet higher health and living expenses.
What happens if I earn more than $90,997 annually?
You may face a clawback, where your OAS amount is gradually reduced based on income level.
