Seniors receiving OAS benefits get a pay raise this month
By Gene Pereira, Local Journalism Initiative reporter
Markham and Stouffville seniors are getting a raise from the Canadian government this month to help pay for those rising bills.
Residents here and across the country will see a bump in pay in their Old Age Security checks as well as an increase to other benefits and credits beginning in July.
Those who receive OAS benefits will get a one per cent increase for the July to September quarter. Based on the Consumer Price Index, that means a 2.3 per cent annual increase over the year from June of 2024 to July of 2025.
The increase in benefits, along with a tax cut by the federal government this month, is aimed at helping Canadians keep pace with the rising cost of living.
“Bringing down costs for Canadians — helping make life more affordable — is a core priority for our government,” said Markham-Stouffville Member of Parliament Helena Jaczek. “That’s why one of Prime Minister (Mark) Carney’s first measures following the election was to deliver a tax cut for Canadians, and it took effect on July 1st.
“Increases to OAS and GIS (Guaranteed Income Supplement) are also important. They’re vital supports for many seniors —that’s why they’re indexed and increased quarterly to keep pace with inflation and the rising cost of living.”
To keep up with the cost of living, the OAS pension is reviewed by the Canadian government in the months of January, April, July, and October.
If the cost of living goes down, the payments won’t decrease.
Several benefits and credits are set to increase with the month of July marking the beginning of the new benefit year.
“To deal with the economic uncertainty imposed by U.S. tariffs, we’ve committed to temporarily increasing the GIS by 5 per cent to provide seniors with more income support,” said Jaczek. “This builds on work we’ve already done — like raising the GIS by 10 per cent, lowering the retirement age to 65, and increasing the earnings exemption.”
Other benefits and credits that are increasing this month include the GST/HST credit, Canada Child Benefit (CCB), the Advanced Canada Workers Benefit (ACWB), and the Canada Pension Plan (CPP).
The Goods and Services Tax/Harmonized Sales Tax will increase by 2.7 per cent. Canadians will receive $533 if they are single, $698 if they are married or have a common law partner, and $183 for each child under the age of 19.
Families will also receive a 2.7 boost from the CCB. The increase means a bump to $666 monthly per child under 6. Monthly payments for children aged six to 17 increase to $562.
Residents may also receive some financial help with the ACWB, a refundable credit that Canadians can claim on their tax return. The benefit helps families who have a lower income.
Those eligible for the benefit can visit the Canada Revenue Agency website to find out exactly how much more they will receive.
The federal government is also increasing Canada Pension Plan payments by 2.6 per cent beginning in July.