Canada OAS Increase 2024 – Payment Amount and Dates You Need to Know

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.

TitleCanada OAS Increase 2024
Year2024
MonthJuly – September
CountryCanada
Name of the AgencyCanada Revenue Agency
OAS Increase Amount0.7%
Frequency of OAS PaymentMonthly
BeneficiariesOld or Aged Citizens
Post CategoryFinance
Official Web Portalwww.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

AgeAnnual Net Income as of 2022Maximum Monthly OAS
65-74 Years$134,626$713.34
75 Years and above$137,331$784.67

July- September 2024

AgeAnnual Net Income as of 2023Maximum Monthly OAS
65-74 Years$142,609$718.33
75 Years and above$148,179$790.16

OAS Payment and Income Limit Increase 2024

AgeAnnual Net Income IncreaseMaximum 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 

StatusIncome LimitMaximum Monthly Amount
Single, Widow, DivorcedBelow $21,768$1,072.93
Spouse with Full OAS PensionBelow $28,752$645.84
Spouse with Allowance recipientBelow $40,272$645.84
Spouse without OAS and AllowanceBelow $52,176$1,072.93

Allowance 

StatusIncome Limit (You + Your Spouse)Maximum Monthly Amount
Couple with Full OAS and GISBelow $40,272$1364.17

Allowance For Survivors 

StatusIncome LimitMaximum Monthly Amount
Surviving SpouseBelow $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 MonthsCPI
February 2024158.8
March 2024159.8
April 2024160.6
Average CPI159.7
MonthCPI
August 2023158.7
September 2023158.5
October 2023158.6
Average CPI158.6

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.

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