The Government of Canada continues to provide enhanced financial support for older seniors through a permanent increase in the Old Age Security (OAS) pension. For those reaching the age of 75, the “bonus” is not a one-time payment but a structural, automatic 10% raise to their monthly benefit. This measure aims to address the higher cost of living and increased health-related expenses typically faced by seniors as they age.
What is the 10% OAS Increase?
Initially launched in July 2022, this policy permanently increased the monthly OAS pension for seniors aged 75 and older. As of the January to March 2026 quarter, the maximum monthly payment for seniors aged 65 to 74 stands at $742.31. For those aged 75 and over, the maximum amount increases to $816.54.
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This difference represents a significant boost in annual income, helping seniors maintain their purchasing power in an evolving economy. Because the Old Age Security program is indexed to the Consumer Price Index (CPI), these amounts are reviewed every three months to ensure they keep pace with inflation.
Eligibility and Automatic Enrollment
One of the most beneficial aspects of this raise is its simplicity. If you are already receiving the OAS pension, you do not need to submit a new application to receive the 10% increase.
- Age Requirement: The increase applies the month following your 75th birthday.
- Automatic Trigger: Service Canada automatically adjusts the payment amount for existing beneficiaries.
- Residency: Eligibility is based on the same residency requirements as the standard OAS pension.
For those who have deferred their OAS pension until age 70, the 10% increase still applies once they reach age 75, calculated on top of their already increased deferred pension amount.
Financial Impact and Tax Considerations
The 10% increase is considered taxable income, similar to the base OAS payment. However, it is important to note how this raise interacts with other benefits:
- Guaranteed Income Supplement (GIS): The 10% increase in the OAS pension does not result in a reduction of GIS payments. The government has specifically excluded this bonus from the income calculation used to determine GIS eligibility.
- OAS Recovery Tax (Clawback): For higher-income seniors, the OAS recovery tax may apply if their annual world income exceeds the set threshold. For the 2026 tax year, the recovery tax typically begins if income exceeds approximately $95,323.
- Quarterly Adjustments: In January 2026, OAS benefits saw a 0.3% increase based on CPI data from the latter half of 2025. This ensures that the 10% bonus also grows as the cost of living rises.
Managing Your Pension Benefits
Seniors are encouraged to keep their personal information updated with Service Canada to ensure seamless delivery of benefits. Using a My Service Canada Account (MSCA) allows beneficiaries to view their payment history, update their address, and manage direct deposit settings.
While the 75+ bonus is automatic, new applicants approaching age 65 should still ensure they apply for the base OAS pension if they have not been naturally enrolled through the automatic selection process.
Frequently Asked Questions
Do I need to fill out a form to get the 10% OAS increase at age 75?
No. The 10% raise is applied automatically by Service Canada the month after you turn 75 if you are already receiving OAS.
Will the extra 10% pension reduce my Guaranteed Income Supplement (GIS)?
No. The 10% increase for seniors 75 and over is excluded from the income calculation for GIS, so your GIS amount will not decrease because of this raise.
How much is the maximum OAS payment for someone over 75 in 2026?
As of the January to March 2026 quarter, the maximum monthly OAS payment for seniors aged 75 and older is $816.54.
Ben Lee is a content writer specializing in government schemes and public benefit programs, delivering clear and up-to-date information to help readers understand eligibility, payments, and policy changes.