Canadian seniors are receiving encouraging news in 2025 with the announcement of an extra $742 Old Age Security (OAS) payment. This move aims to help retirees and older citizens manage the increasing cost of living. The Canada Revenue Agency (CRA) has designed this payment as additional support alongside the regular monthly OAS benefits.
This article will explain who qualifies, how much is being paid, when the payment will be delivered, and what seniors need to know.
What Is the OAS Payment?
The Old Age Security (OAS) pension is a monthly benefit paid to Canadians aged 65 or older. It is not based on employment history but rather on age and residency in Canada.
In 2025, the government has introduced an extra one-time payment of $742 for eligible OAS recipients. The goal is to provide direct relief to seniors who are most affected by inflation and rising household expenses.
Eligibility for the Extra $742 OAS Payment
Not every senior automatically qualifies for this additional payment. The CRA has outlined specific requirements:
- You must be 65 years or older in 2025.
- You must be a Canadian resident.
- You must already be receiving OAS benefits.
- Your annual net income must be under the set threshold for clawback (higher-income seniors may see a reduction or no payment).
Eligibility
| Requirement | Details |
|---|---|
| Age | 65 years or older |
| Residency | Must live in Canada |
| OAS Status | Must be receiving OAS in 2025 |
| Income Test | Must fall below the clawback threshold |
How Much Will You Get?
The extra OAS payment is a flat $742 one-time amount for eligible seniors. It will be paid on top of the regular OAS monthly pension.
Current OAS Monthly Rates (2025)
| Age Group | Maximum Monthly OAS | Extra Payment 2025 |
|---|---|---|
| 65–74 years | $734.95 | +$742 one-time |
| 75+ years | $808.45 | +$742 one-time |
This means a senior aged 65–74 could receive their normal monthly OAS plus the additional $742, while those aged 75 or older would also receive the same one-time top-up.
When Will the Payment Be Delivered?
The delivery of the $742 extra OAS payment is expected in mid-2025. It will be issued as part of the regular OAS payment cycle.
- If you receive OAS by direct deposit, the extra amount will be added automatically.
- If you receive OAS by mailed cheque, the payment will be included in the same delivery.
- No separate application is required — all eligible seniors will get it automatically.
Why an Extra OAS Payment in 2025?
Seniors in Canada have faced rising costs for food, housing, medicine, and utilities. While the regular OAS includes quarterly adjustments tied to inflation, the government recognized that additional help was necessary.
The extra $742 payment is designed to:
- Ease the burden of inflation for low and middle-income seniors.
- Support everyday expenses like groceries, heating, and rent.
- Provide stability for seniors living on fixed pensions.
Key Points at a Glance
| Topic | Details |
|---|---|
| Program | Old Age Security (OAS) Extra Payment |
| Year | 2025 |
| Amount | $742 one-time |
| Who Qualifies | Canadian seniors 65+, receiving OAS, below income threshold |
| Delivery | Added to regular OAS in mid-2025 |
| Application | Not required – automatic payment |
Common Misunderstandings
There has been confusion about this extra payment. Some people believe it is a permanent increase to OAS, but that is not true. The $742 is a one-time payment only. Regular OAS monthly amounts will continue to be adjusted quarterly for inflation, but the extra top-up is separate and temporary.
The CRA’s confirmation of the extra $742 OAS payment in 2025 is welcome news for millions of Canadian seniors.
This one-time relief measure will help offset inflation and provide much-needed support for those on fixed incomes. Seniors do not need to apply — if you are 65 or older, a Canadian resident, and already receiving OAS, you will automatically get the payment.
By mid-2025, eligible seniors can expect this additional support, giving them more security and peace of mind as living costs continue to rise.
FAQs
Do I need to apply for the extra $742 payment?
No, there is no need to apply. If you qualify, the amount will be added to your OAS payment automatically.
Will higher-income seniors also receive it?
Seniors with incomes above the clawback threshold may see their extra payment reduced or eliminated. Lower and middle-income seniors will receive the full $742.
Is this a permanent change to OAS?
No, this is a one-time payment in 2025 only. Regular OAS payments will continue as usual.