The Old Age Security Pension is provided to senior citizens in Canada. The payments from the Old Age Security Pension are determined by factors such as income, age, and residency status. The Canada OAS Payment Amount for 2024 is revised quarterly by the Canada Revenue Agency (CRA). Specifically, these amounts are reviewed in January, April, July, and October. In July 2024, the CRA adjusted these OAS amounts based on the consumer price index, which reflects changes in the cost of living due to inflation. Let’s explore the Canada OAS Increase 2024, including its calculation and the changes to other OAS benefits such as the Guaranteed Income Supplement (GIS), the Allowance, and the Allowance for Survivors.
Canada OAS Increase 2024
The Canada Revenue Agency adjusts the benefit payment amounts based on changes in the Consumer Price Index (CPI). The CPI reflects fluctuations in the cost of living, which can result from both inflation and deflation. Typically, OAS payment amounts increase when the cost of living rises, while these amounts remain unchanged during periods of declining costs. The Canada OAS Increase 2024 is directly tied to the CPI. Additionally, other OAS benefits, such as the Guaranteed Income Supplement, Allowance, and Allowance for Survivors, are also adjusted accordingly. In this post, we will examine the changes or increases in the Canada OAS Payment Amount for 2024 and discuss how to calculate the OAS amount effectively.
| Title | Canada OAS Increase 2024 |
|---|---|
| Year | 2024 |
| Month | July – September |
| Country | Canada |
| Name of the Agency | Canada Revenue Agency |
| OAS Increase Amount | 0.7% |
| Frequency of OAS Payment | Monthly |
| Beneficiaries | Old or Aged Citizens |
| Post Category | Finance |
| Official Web Portal | www.canada.ca |
Canada OAS Payment Amount 2024
Here we present the latest payment adjustments made by the Canada Revenue Agency for OAS Payments. At the beginning of each quarter, the CRA revises payment amounts based on the Consumer Price Index. For the current quarter (July to September), the payment for the Old Age Security pension has increased by 0.7%. Additionally, the income limit has also been raised in line with the Monthly Canada OAS Increase 2024. Let’s examine the Canada OAS Amount and Income Limit Increase for July 2024, along with the maximum Old Age Security amounts and income limits from April to June 2024. We’ll compare these figures to highlight the changes in OAS amounts and income limits.
April- June 2024
| Age | Annual Net Income as of 2022 | Maximum Monthly OAS |
|---|---|---|
| 65-74 Years | $134,626 | $713.34 |
| 75 Years and above | $137,331 | $784.67 |
Also Read- $2150 Old Age Security Payment Coming for Seniors? Everything You Need to Know!
July- September 2024
| Age | Annual Net Income as of 2023 | Maximum Monthly OAS |
|---|---|---|
| 65-74 Years | $142,609 | $718.33 |
| 75 Years and above | $148,179 | $790.16 |
OAS Payment and Income Limit Increase 2024
| Age | Annual Net Income Increase | Maximum Monthly OAS Increase |
|---|---|---|
| 65-74 Years | $7,983 | $4.99 |
| 75 Years and above | $10,848 | $5.49 |
Other OAS Benefits Increase July 2024
Guaranteed Income Supplement
| Status | Income Limit | Maximum Monthly Amount |
|---|---|---|
| Single, Widow, Divorced | Below $21,768 | $1,072.93 |
| Spouse with Full OAS Pension | Below $28,752 | $645.84 |
| Spouse with Allowance recipient | Below $40,272 | $645.84 |
| Spouse without OAS and Allowance | Below $52,176 | $1,072.93 |
Allowance
| Status | Income Limit (You + Your Spouse) | Maximum Monthly Amount |
|---|---|---|
| Couple with Full OAS and GIS | Below $40,272 | $1364.17 |
Allowance For Survivors
| Status | Income Limit | Maximum Monthly Amount |
|---|---|---|
| Surviving Spouse | Below $29,328 | $1,626.20 |
Computation of July- September OAS Amount 2024
The OAS Amount for the period from July to September 2024 is calculated using the average Consumer Price Index (CPI) from the most recent three months and the average CPI from the prior three months when the OAS increase occurred. By identifying these specific months, we can compute the CPI for that time frame. To understand the calculations better, please refer to the table provided, which details the Average CPI for the relevant months. This will give you a clearer picture of how the OAS amounts are determined based on CPI changes.
| Recent CPI for 3 Months | CPI |
|---|---|
| February 2024 | 158.8 |
| March 2024 | 159.8 |
| April 2024 | 160.6 |
| Average CPI | 159.7 |
| Month | CPI |
|---|---|
| August 2023 | 158.7 |
| September 2023 | 158.5 |
| October 2023 | 158.6 |
| Average CPI | 158.6 |
How To Calculate OAS Payment Increase July 2024
Now that we have the Average CPI, we can apply it to the formula for calculating the OAS monthly amounts. The formula is: subtract the Average CPI from the recent three months when OAS increased from the Average CPI of the most recent three months, and then divide the result by the Average CPI from the previous increase period.
Here’s the calculation: 159.7 – 158.6 = 1.1.
Next, divide 1.1 by 158.6 to get 0.006935.
When we multiply this result by 100, we obtain 0.6935%, which rounds to approximately 0.7%. Therefore, the benefits for the Old Age Security Pension will rise by 0.7% for the months of July, August, and September.
FAQs
How is the OAS payment amount determined?
The Old Age Security (OAS) payment amount is determined by factors such as age, income, and residency status. The Canada Revenue Agency adjusts payments quarterly based on the Consumer Price Index (CPI) reflecting the cost of living.
What is the OAS increase for July to September 2024?
For the period from July to September 2024, the OAS payment amount has increased by 0.7%. This adjustment reflects changes in the Consumer Price Index (CPI) and is part of the quarterly review by the Canada Revenue Agency.
What are the income limits for OAS in 2024?
For those aged 65-74, the income limit is $142,609, while for individuals 75 and older, it is $148,179. Exceeding these limits may reduce the amount of OAS benefits received.