Canadian seniors living on fixed incomes will soon see a much-needed financial lift. Starting July 2025, the federal government will increase the Guaranteed Income Supplement (GIS) by up to \$1395 per year, giving qualifying seniors an extra \$116.25 each month.
This move comes at a crucial time, with inflation driving up the price of groceries, rent, utilities, and basic necessities. For seniors who rely almost entirely on government pensions, the increase will provide stability, dignity, and greater security in retirement.
What the GIS Is and Why It Matters
Bridging the Gap for Seniors Without Other Income
The Guaranteed Income Supplement (GIS) is a non-taxable monthly payment offered to low-income Canadians who already receive Old Age Security (OAS). Unlike some benefits, GIS does not have to be repaid and is not subject to tax deductions.
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It was designed to fill a gap for seniors who do not have other income sources such as workplace pensions, RRSP savings, or investments. For many, it is the only way they can afford essentials like rent, utilities, and food.
The increase announced for 2025 is not a temporary measure or one-time payment—it is a permanent boost to the monthly supplement, providing seniors with consistent, reliable income support year after year.
Details of the 2025 Increase
How Much More Seniors Will Receive
From July 2025 onward, eligible seniors will automatically receive an extra \$1,395 annually on top of their existing GIS payments. Broken down, this equals:
- \$116.25 more each month for those who qualify.
- Payments added directly to the GIS, without requiring a new application.
- An increase that continues into following years, subject to annual income reviews.
For seniors living on extremely tight budgets, this boost can mean affording healthier groceries, keeping up with heating bills, or covering rising rent costs.
Eligibility Criteria for the Increase
Who Qualifies for the New GIS Top-Up
Not every senior automatically qualifies. To receive the GIS increase, you must meet three main requirements:
- Be 65 years of age or older.
- Be receiving the Old Age Security (OAS) pension.
- Have an income below the government’s annual limits.
For 2025, the income thresholds have been set as follows:
| Recipient Type | Maximum Annual Income (2025) |
|---|---|
| Single senior | Less than \$21,648 |
| Married/common-law (both on OAS) | Combined under \$28,560 |
| One spouse on OAS, other not | Combined under \$51,408 |
These limits are based on net income, calculated by the Canada Revenue Agency (CRA) from your most recent tax return.
Payment Schedule and Process
When and How Seniors Will Be Paid
The new GIS amounts begin in July 2025, timed with the mid-year benefit adjustment. For those already receiving GIS, the additional money will simply appear as part of their monthly direct deposit or cheque.
No reapplication is necessary if your income information is up to date. The CRA and Service Canada will handle the adjustments automatically.
For seniors applying for the first time, there are three ways to apply:
- Online through your My Service Canada Account.
- By mail using the paper application form.
- In person at a local Service Canada office.
Applicants will need to provide proof of income and personal details. Processing times vary, but applying early ensures you won’t miss the July 2025 adjustment.
Why This Increase Is So Important
Helping Seniors Cope with Rising Costs
Canada’s seniors have been among the hardest hit by the rising cost of living. Fixed incomes often fail to keep up with inflation, leaving many struggling to cover the basics.
This GIS increase addresses:
- Rising grocery bills: Food prices have surged in recent years, leaving many older Canadians relying on food banks or cutting back on essentials.
- Higher rent and housing costs: Seniors living in cities face skyrocketing rental rates and property taxes.
- Heating and utilities: With energy prices climbing, many older Canadians face difficult choices between paying bills and buying necessities.
The extra \$116.25 per month may seem small to some, but for those living on less than \$21,648 a year, it makes a significant difference.
Income Thresholds and Fluctuations
Why Payments May Change from Year to Year
It’s important to understand that GIS amounts are income-tested. This means payments can increase or decrease depending on your income levels.
For example:
- If you take on part-time work or receive additional pension income, your GIS may be reduced.
- If your income goes up significantly, you may no longer qualify.
- If your income drops, you could qualify for higher payments the following year.
Keeping your tax filings accurate and up to date is the best way to ensure you continue to receive the correct GIS amount.
Automatic Adjustments and Indexing
How the Program Keeps Pace with Inflation
Like OAS, the GIS is adjusted quarterly to keep up with inflation, based on the Consumer Price Index (CPI). This ensures that payments don’t lose value over time, even if the cost of living rises.
The \$1,395 increase in 2025 is separate from these routine adjustments. It represents a new policy decision aimed specifically at giving low-income seniors more financial security.
Wider Impact of the GIS Increase
Beyond Individual Seniors—A National Effect
The increase to GIS does more than just help individuals—it strengthens Canada’s overall social safety net. By ensuring low-income seniors can afford basic necessities, the government:
- Reduces reliance on emergency aid programs.
- Prevents seniors from falling into homelessness or poverty.
- Provides a more stable retirement for those without other savings.
- Supports local economies, as seniors spend this money on essentials like food and housing.
Advocacy groups for seniors have applauded the change, calling it an important step in recognizing the challenges faced by older Canadians in today’s economy.
What Seniors Should Remember
Key Takeaways Before July 2025
- The GIS increase begins July 2025 and adds \$1,395 annually.
- You don’t need to reapply if you already receive GIS and your tax return is filed.
- Eligibility depends on income, so keep your tax filings current.
- Payments are non-taxable and will be deposited monthly.
- Any change in your income may affect your future GIS amounts.
Final Outlook
The GIS increase for 2025 represents a meaningful change in how Canada supports its most vulnerable seniors. With an additional \$116.25 per month, thousands of older Canadians will gain a financial lifeline that helps them live with dignity and security.
For seniors living paycheck to paycheck, the new payments may mean the difference between struggling to afford basic needs and having enough to live more comfortably. As the July rollout approaches, seniors and their families are encouraged to check their eligibility and ensure tax filings are current.
5 Relevant FAQs
Q1: How much will the GIS increase in 2025?
A1: Starting July 2025, GIS payments will rise by up to \$1,395 annually, or about \$116.25 per month.
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Q2: Do I need to apply for the new GIS increase?
A2: No, if you already receive GIS and your income information is up to date, the increase will be applied automatically.
Q3: What are the income limits to qualify in 2025?
A3: Single seniors must earn less than \$21,648. Couples must earn below \$28,560 combined, or below \$51,408 if only one spouse receives OAS.
Q4: Are GIS payments taxable?
A4: No, GIS payments are non-taxable and do not need to be repaid.
Q5: When will seniors receive the increased payments?
A5: The new GIS amounts will begin in July 2025, appearing in regular monthly payments.