Canada’s low-income seniors are set to receive a meaningful financial boost beginning in July 2025. The federal government has officially confirmed a \$1,395 annual increase to the Guaranteed Income Supplement (GIS), translating to an additional \$116.25 every month for those who qualify.
With grocery bills climbing, rent and utilities rising, and inflation continuing to pressure fixed incomes, this measure aims to provide relief for seniors who rely heavily on government support. For many older Canadians, the GIS serves as a lifeline, supplementing Old Age Security (OAS) to cover daily expenses.
This report explores what the GIS increase means, who qualifies, and how payments will be distributed.
What is the Guaranteed Income Supplement?
The Guaranteed Income Supplement (GIS) is a monthly, non-taxable payment designed for low-income seniors already receiving Old Age Security (OAS). It is not something retirees must repay, nor does it reduce other benefits. Instead, it acts as a crucial top-up to ensure vulnerable seniors can afford necessities.
Unlike workplace pensions or RRSP savings, the GIS is funded entirely by the government and distributed automatically to those who meet income requirements. For decades, it has been one of the cornerstones of Canada’s retirement income system.
Details of the \$1,395 Annual Increase
Beginning in July 2025, GIS recipients will see their benefits rise by as much as \$1,395 per year, which equals \$116.25 per month.
Unlike one-time affordability payments, this is a permanent increase to the monthly supplement. Seniors who currently receive GIS will notice the extra money deposited directly into their bank accounts alongside their usual OAS and GIS payments.
Officials say the increase is timed to counter inflationary pressures that have left many seniors struggling with rising grocery, healthcare, and housing costs.
Who Qualifies for the New Increase?
Eligibility for GIS—and the new top-up—remains tied to income levels and OAS status. To qualify in 2025, you must:
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- Be 65 years of age or older.
- Be a recipient of Old Age Security (OAS).
- Have income below the government’s thresholds.
The confirmed income limits for 2025 are:
| Recipient Type | 2025 Income Limit |
|---|---|
| Single senior | Less than \$21,648 |
| Married/common-law (both on OAS) | Combined under \$28,560 |
| One spouse/partner on OAS, other not | Combined under \$51,408 |
These limits are based on net income, calculated using your 2024 tax return.
Automatic Payments – No Action Required
If you are already receiving GIS and your income information is current, the increase will be applied automatically starting July 2025. There is no need to reapply.
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For new applicants, however, you must:
- Apply online through your My Service Canada Account (MSCA).
- Submit a paper application by mail.
- Or apply in person at a Service Canada office.
Keeping your tax filings up to date is critical. Service Canada relies on the most recent tax return to determine your GIS eligibility and calculate your payment amounts.
Why This Increase Matters Now
The government’s decision to boost GIS by \$1,395 comes as seniors face record-high living expenses. Inflation has affected nearly every aspect of daily life, including:
- Food costs, with staples like bread, dairy, and produce up significantly.
- Housing and rent, especially for seniors who do not own their homes.
- Transportation and utilities, with fuel and heating prices remaining elevated.
For many low-income seniors, GIS represents the difference between managing bills and falling into deeper financial hardship. By permanently raising the supplement, Ottawa is aiming to strengthen seniors’ financial security in the long term.
Payment Breakdown – How Much You’ll Receive
Here’s how the increase will play out in practice:
- Single senior: Up to an additional \$116.25 per month on top of existing GIS amounts.
- Couples (both on OAS): Each partner could see an increase, depending on their combined income.
- Mixed households (one on OAS, one not): Eligibility remains based on total family income, with the increase factored in.
Since GIS is income-tested, the exact amount you receive may differ. Seniors with higher incomes (but still below the threshold) may receive a partial benefit, while those at the lowest income levels will get the full increase.
Application Reminders and Documentation
If you are applying for GIS for the first time, you’ll need:
- Proof of age and residency.
- Income documentation from your 2024 tax return.
- Details of your spouse’s income if applicable.
For ongoing recipients, the most important step is ensuring your tax return is filed on time. Without it, Service Canada cannot assess your eligibility for the increase.
Interaction With Other Benefits
The GIS increase does not reduce or impact other benefits such as:
- Old Age Security (OAS).
- Canada Pension Plan (CPP).
- Provincial or municipal supplements.
It also remains non-taxable, so seniors can rely on the extra \$1,395 without worrying about deductions at tax time.
Potential Challenges and Considerations
While the increase is welcomed, some challenges remain:
- The GIS is income-sensitive—extra income from part-time work or investments could reduce your benefit.
- Payment amounts may fluctuate annually depending on your income filings.
- Some seniors are unaware they qualify, particularly those who do not file taxes regularly.
Service Canada is urging all seniors to file their taxes, even if their income is low or non-existent, to ensure they don’t miss out.
Broader Government Strategy to Support Seniors
The GIS increase is part of a wider package of measures, including:
- OAS indexing, which adjusts benefits quarterly to reflect inflation.
- CPP enhancements, gradually increasing payouts for future retirees.
- Targeted affordability programs such as the Canada Carbon Rebate and housing top-ups.
Together, these measures form the backbone of Canada’s retirement income system, ensuring that seniors can maintain dignity and security in later life.
5 FAQs
Q1: How much is the GIS increase in 2025?
Eligible seniors will receive up to \$1,395 more per year, or \$116.25 per month, starting July 2025.
Q2: Do I need to apply for the increase?
No, if you already receive GIS and have filed your 2024 taxes, the increase will be added automatically.
Q3: Who qualifies for GIS?
Seniors aged 65 or older who receive OAS and whose incomes fall below the government’s income thresholds.
Q4: Is the GIS increase taxable?
No, GIS is non-taxable and will not affect other federal or provincial benefits.
Q5: When will payments begin?
The increased GIS payments will start in July 2025.