The Canadian government is introducing a $2,250 boost for eligible seniors under the Old Age Security (OAS) program in May 2025.
This one-time payment, scheduled to be directly deposited on May 29, 2025, is designed to support seniors aged 75 and older, as they continue to face financial strain due to rising living costs.
Overview of the May 2025 OAS Top-Up
The $2,250 increase is part of the federal government’s ongoing initiative to provide relief to seniors affected by inflation. Unlike regular OAS payments, this one-time deposit does not require an application.
Eligible seniors will automatically receive the payment, either through direct deposit or, if they are not set up for direct deposit, via a cheque.
Key Facts about the OAS Boost
- Payment Amount: $2,250
- Eligibility: Seniors aged 75+ as of May 2025
- Payment Date: May 29, 2025
- Taxable: Yes, this payment is considered taxable income
Eligibility Criteria for the OAS Boost
To qualify for the May 2025 OAS top-up, seniors must meet the following conditions:
- Be 75 years or older as of May 2025
- Be a Canadian citizen or legal resident
- Have lived in Canada for at least 10 years after turning 18
- Currently receive OAS benefits
Seniors who are registered for direct deposit will receive the payment on May 29, 2025. Those who are not enrolled in direct deposit will receive a cheque by mail, but delivery may take longer.
It is advisable for seniors to update their banking information through their My Service Canada Account (MSCA) or by contacting Service Canada directly.
How the OAS Boost Will Impact Seniors
The $2,250 OAS boost is a timely financial relief for seniors, especially considering the rise in the cost of living. For example, Margaret, a 79-year-old widow in Vancouver, spends more than half of her income on rent. This one-time payment will allow her to:
- Clear overdue utility bills
- Book a delayed dental appointment
- Purchase a mobility aid for better safety at home
This payment provides much-needed stability for many seniors, offering financial breathing room and enhancing their quality of life.
Will the OAS Boost Be Taxed?
Yes, the $2,250 payment is considered taxable income. Seniors must report it on their 2025 tax return. If your total annual income exceeds $90,997, the OAS Recovery Tax (also known as the “clawback”) may apply. To minimize the tax impact, consider strategies such as:
- Transferring savings to a Tax-Free Savings Account (TFSA)
- Splitting pension income with a spouse
- Delaying OAS to increase monthly benefits (until age 70)
Understanding OAS in 2025: What Seniors Can Expect
The Old Age Security (OAS) program provides monthly pension benefits to Canadian seniors aged 65 and older, based on their residency in Canada, rather than their work history. Here’s a breakdown of the regular OAS rates for April to June 2025:
| Age Group | Monthly OAS Payment |
|---|---|
| Ages 65–74 | $727.67 |
| Ages 75 and older | $800.44 |
These payments are supplemented by other government programs, such as the Guaranteed Income Supplement (GIS), Canada Pension Plan (CPP), and Survivor Allowance. Many of these additional benefits are non-taxable and depend on income or marital status.
How to Ensure Your Direct Deposit is Set Up
To ensure timely receipt of the Canada seniors direct deposit 2025, make sure your banking information and mailing address are up to date. There are three ways to manage your details:
- My Service Canada Account (MSCA)
- In person at a Service Canada office
- Calling Service Canada at 1-800-277-9914
The $2,250 OAS boost is a significant step toward easing the financial burden on Canadian seniors. With the increasing costs of essentials like food, healthcare, and housing, this one-time payment will help many seniors meet their needs and regain a sense of security.
Seniors aged 75 and over who are already receiving OAS benefits will receive the payment automatically, either through direct deposit or by cheque.
Seniors are encouraged to ensure their direct deposit details are up-to-date to avoid delays in receiving the payment. For further information, seniors can visit the official Service Canada website or log into their MSCA to check the status of their payment.
FAQs
When will the OAS payment be made?
The OAS $2,250 top-up will be paid on May 29, 2025.
Do I need to apply for this payment?
No, eligible seniors will receive the payment automatically if they are already receiving OAS benefits.
Will this payment affect my taxes?
Yes, the payment is taxable income and must be reported on your 2025 tax return.