Canadian seniors struggling with the rising cost of living are about to get a much-needed financial cushion. Starting July 2025, the federal government has confirmed a significant increase to the Guaranteed Income Supplement (GIS), adding \$1395 annually—or approximately \$116.25 per month—to the benefits of low-income retirees.
This enhancement comes as part of Ottawa’s ongoing commitment to ensuring that seniors who rely on Old Age Security (OAS) and GIS can live with dignity despite inflationary pressures and the steady climb in housing, groceries, and medical expenses.
But what does this increase mean for seniors across the country? Who qualifies, how will payments work, and what steps are necessary to access this benefit? Here’s everything you need to know.
What is the Guaranteed Income Supplement (GIS)?
The Guaranteed Income Supplement (GIS) is a non-taxable monthly payment available to low-income seniors already receiving Old Age Security (OAS). Unlike CPP or RRSP withdrawals, it is not based on lifetime contributions but on financial need.
For thousands of Canadians—especially those without private pensions, workplace retirement plans, or significant savings—GIS is a lifeline. It ensures that seniors don’t fall below the poverty line, covering essentials like rent, food, utilities, and prescription drugs.
With this new increase in 2025, the program is being bolstered at a critical time, offering real relief to some of the most financially vulnerable Canadians.
Details of the \$1395 Annual Increase
The 2025 adjustment is straightforward but significant:
- Monthly increase: \$116.25
- Annual total boost: \$1395
The increase will be automatic for current GIS recipients. If you already qualify and your personal and financial details are up to date with Service Canada, you do not need to reapply. Payments will adjust seamlessly in July 2025.
This enhancement is part of a series of measures introduced to respond to inflationary concerns and rising public demand for stronger senior supports.
Eligibility Rules for GIS in 2025
Not every Canadian senior is eligible for the GIS, and the criteria remain unchanged. To qualify in 2025, applicants must:
- Be 65 years of age or older
- Be a current recipient of Old Age Security (OAS)
- Have an annual income below government-set thresholds
The income cut-offs for 2025 are:
| Living Status | Maximum Annual Income Allowed |
|---|---|
| Single senior | Less than \$21,648 |
| Couple (both receive OAS) | Less than \$28,560 combined |
| Couple (one receives OAS, other does not) | Less than \$51,408 combined |
Eligibility is recalculated annually, based on your most recent tax return. This ensures that those with changing circumstances—such as reduced income after retirement—can gain access to GIS.
How Payments Will Be Distributed
GIS payments, like OAS, are distributed monthly. Starting July 2025, the new increase will be reflected in deposits or cheques.
- Current recipients: No action required if your information is current. Payments automatically increase.
- New applicants: You can apply through Service Canada online, by mail, or in person.
To ensure smooth processing, make sure you:
- Have filed your latest income tax return
- Keep your banking information updated in My Service Canada Account (MSCA)
- Review eligibility annually
This means that seniors who have not previously qualified may now become eligible due to the expanded financial cushion.
Why the GIS Increase Matters
This increase arrives at a critical time for seniors across Canada. Inflation and economic uncertainty have hit those on fixed incomes the hardest. With rising costs for housing, energy, and healthcare, many seniors have found their monthly OAS and GIS benefits stretched too thin.
An additional \$116.25 per month may seem modest, but for a senior living on the edge, it can make the difference between paying rent on time, affording nutritious groceries, or covering prescription medications.
Moreover, because GIS is non-taxable, the full increase goes directly into the hands of seniors—unlike other forms of income support that may reduce after-tax benefits.
Broader Federal Support for Seniors
The GIS increase is one of several policy adjustments targeting seniors in recent years. Others include:
- Enhanced CPP benefits through contribution-based reforms
- Adjustments to OAS for seniors aged 75+
- Temporary top-ups during the COVID-19 pandemic to help offset economic disruptions
Together, these measures reflect Ottawa’s strategy to reinforce Canada’s retirement safety net, ensuring older Canadians do not slip into poverty after decades of work.
How Seniors Can Apply if Newly Eligible
For those who were not previously receiving GIS but may now qualify, the process involves:
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- Filing your 2024 income tax return (eligibility is based on this).
- Applying online via your My Service Canada Account (MSCA).
- Mailing a paper application to Service Canada, or applying in person at a local office.
Tip: Even if you were previously denied, it may be worth reapplying in 2025, as thresholds and amounts have changed.
Long-Term Impact of the Increase
By boosting the GIS, the government is addressing both immediate and structural challenges:
- Short-term relief: Helping seniors manage inflation and affordability concerns.
- Long-term stability: Reinforcing confidence in Canada’s retirement income system.
- Equity: Supporting the most vulnerable seniors who often lack private pensions or substantial savings.
The measure also highlights the importance of integrating GIS, OAS, and CPP into a coordinated framework that can withstand demographic pressures, as Canada’s senior population is projected to double over the next two decades.
For those relying on every dollar, this increase could be life-changing.
FAQs
Q1: What is the GIS increase in 2025?
Starting in July 2025, GIS payments will rise by \$1,395 annually, or about \$116.25 per month.
Q2: Do seniors need to apply for the new increase?
If you already receive GIS and your information with Service Canada is current, the increase is automatic.
Q3: Who qualifies for GIS in 2025?
Eligibility requires being 65+, receiving OAS, and having income below the government thresholds (e.g., less than \$21,648 annually for single seniors).
Q4: How are GIS payments distributed?
Payments are deposited monthly, starting July 2025, through direct deposit or cheque.
Q5: Is GIS taxable income?
No, GIS is non-taxable, meaning recipients keep the full amount without tax deductions.
