Canada’s Old Age Security (OAS) pension received a modest 1% increase for the July–September 2025 quarter (a 2.3% rise over the prior year). As a result:
- Ages 65–74 now receive up to $734.95 per month.
- Ages 75 and up receive up to $808.45 per month.
Key Details at a Glance
| Detail | Information |
|---|---|
| Maximum OAS (65–74) | $734.95/month |
| Maximum OAS (75+) | $808.45/month |
| Quarterly Review | January, April, July, October (based on CPI changes) |
| August Payment Date | August 27, 2025 — direct deposit or mail delivery |
| Minimum Residency | 10 years in Canada after age 18 (20 years if living outside Canada) |
| Clawback Thresholds | $148,541 (65–74) and $154,196 (75+) |
| Payment Increase Basis | CPI-based — ensures payments don’t decrease with inflation drops |
Understanding the Increase
The 1% increase for July–September 2025 stems from Consumer Price Index adjustments . Over the past year (July 2024 to July 2025), cumulative increases reached 2.3%. These quarterly resets ensure OAS retains its value in the face of inflation.
Payment Schedule
OAS benefits are issued during the third business day from the end of each month. For August 2025, the scheduled deposit date is August 27.
Seniors using direct deposit will see funds on that day, while cheque recipients may experience slight mailing delays.
Eligibility & Clawback
To qualify for full OAS:
- Be 65 or older,
- Be a Canadian citizen or legal resident,
- Have lived in Canada for at least 10 years since age 18 (or 20 years if residing abroad).
High-income seniors might face the OAS “clawback” (OAS Recovery Tax) if their net annual income exceeds:
- $148,541 (ages 65–74),
- $154,196 (75+).
How to Apply & Tax Considerations
Most Canadians are automatically enrolled in OAS when close to age 65, but manual application remains possible via:
- My Service Canada Account,
- Paper application by mail,
- In-person at a Service Canada office .
OAS is taxable income, and no tax is withheld by default. Seniors can request voluntary withholding through online or paper forms to avoid unexpected tax bills.
Why This Matters
Amid rising living costs, even small increases matter. With the new OAS maximum reaching $808.45 for those 75+, and the potential for additional GIS (Guaranteed Income Supplement) support, this adjustment helps sustain seniors’ financial security and independence.
The August 2025 OAS adjustment, raising payments to $734.95 (65–74) and $808.45 (75+), reflects Canada’s commitment to senior support amidst inflation.
With eligibility, payment dates, and clawback clarity, seniors are empowered to better manage their finances. Ensure your enrollment, direct deposit, and account details are up to date—and plan ahead for supplemental benefits like GIS to optimize your retirement income.
FAQs
When will the August 2025 OAS be paid?
August 27, 2025, with timing depending on direct deposit or mail method.
Who qualifies for full OAS and when does clawback begin?
Qualification requires being 65+, meeting residency requirements (10/20 years), and having income below $148,541 (65–74) or $154,196 (75+).
Is OAS taxable and how can I manage taxes?
Yes, it’s taxable. You must request voluntary withholding via My Service Canada Account or use the federal form to avoid year-end tax burdens.