In Canada, the elderly and retired individuals receive an Old Age Security Pension. The Old Age Security Pension payments are mostly affected by the age of the aged citizen, residential status, and income. Every quarter the Canada Revenue Agency updates their OAS payment amounts. The Canada Revenue Agency reviews or alter these amounts in January, April, July, and October. The recent increase made by the CRA for OAS amounts is in July 2024. These payout amounts are determined by the consumer price index which shows the changes in living expenses which came with the high inflation. Discover the Canada OAS Increase August 2024, also you may see how these changes will affect other OAS benefits like GIS, Allowance, and Survivor Allowance.
OAS Increase August 2024
The benefit payment amount for OAS is adjusted by Canada Revenue Agency in response to CPI adjustments. The changes in the cost of living are reflected in the Consumer Price Index and are caused by both inflation and deflation. When the cost of living rises, OAS payment amounts typically increase and when it falls OAS payment amounts generally remain the same. The Consumer Price Index will determine the OAS Increase August 2024. This also affects the other OAS payments, such as the Allowance, Survivor Allowance, and Guaranteed Income Supplement. This article will show the adjustments to the Old Age Security Payment and explain how to calculate it.
Overview- OAS Increase August 2024
| Title | OAS Increase August 2024 |
| Year | 2024 |
| Month | August |
| Country | Canada |
| Name of the Managing Agency | Canada Revenue Agency |
| OAS Increase Payout | 0.7% |
| Frequency of OAS Payment | Monthly |
| Objective | Financial Status |
| Beneficiaries | Old or Aged Citizens |
| Taxability | Taxable |
| Post Category | Finance |
| Official Web portal | www.canada.ca |
OAS Amount & Income Raised 2024
The most recent payment adjustment for the OAS payments made by the Canada Revenue Agency is available here. Every quarter, the Consumer Price Index is used by CRA to modify the payment amounts in the first month. During this quarter (July to September), the Old Age Security pension payment increased by 0.7%. Together with the monthly payment levels, the income ceiling is also raised. Let’s examine the increase in the Canada Old Age Security amount and income limit for August 2024 as well as the April–June 2024 maximum old age security amount and income limit. Let’s see how the OAS amounts and Income Limits have changed by comparing them.
Increase in Income Limit:
| Age | Annual Net Income as on 2022 | Annual Net Income as on 2023 | Annual Net Income Increase |
| 65-74 Years | $134,626 | $142,609 | $7,983 |
| 75 Years and above | $137,331 | $148,179 | $10,848 |
Increase in Payment Amount:
| Age | Maximum Monthly OAS for June 2024 | Maximum Monthly OAS August 2024 | Maximum Monthly OAS Increase |
| 65-74 Years | $713.34 | $718.33 | $4.99 |
| 75 Years and above | $784.67 | $790.16 | $5.49 |
OAS Increase August 2024- Computation
The Average CPI of the previous three months and the Average CPI of the previous three months when OAS rise are used to calculate the OAS Amount for August 2024. We identify these months and determine their respective CPIs. To find out the average CPI, look at the provided table.
| Latest 3 Months CPI | CPI | OAS Rise Latest 3 Months CPI | CPI |
| February 2024 | 158.8 | August 2023 | 158.7 |
| March 2024 | 159.8 | September 2023 | 158.5 |
| April 2024 | 160.6 | October 2023 | 158.6 |
| Average CPI | 159.7 | Average CPI | 158.6 |
The calculation for the OAS Increase is as follows:
- Firstly deduct the Average CPI of 159.7 from Average CPI of 158.6.
- Then divide the outcome of 1.1 by 158.6.
- This has a result of 0.0069356.
- Multiply the result with hundred to convert them into percentages.
- 0.0069356* 100 = 0.6935% which is approximately 0.7%.
- The OAS Pension Benefits are raised by 0.7% in August 2024.
OAS Benefit Increase 2024
As the various other benefits are made to old age security recipients and these benefits are GIS, Allowance and allowance that is provided to survivors. For August 2024, these amounts are also get increased and we will check these OAS Benefit 2024:
Guaranteed Income Supplement:
| Status | Income Limit | Maximum Monthly Amount |
| Single, Widow, Divorced | Below $21,768 | $1072.93 |
| 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 | $1072.93 |
Allowance:
| Status | Income Limit (You + Your Spouse) | Maximum Monthly Amount |
| Couple with Full OAS and GIS | Below $40,272 | $1364.17 |
Survivor’s Allowance:
| Status | Income Limit | Maximum Monthly Amount |
| Surviving Spouse | Below $29,328 | $1626.20 |
FAQ Related To OAS Increase August 2024
The OAS increase is the rise in the payment amounts so that the citizens can stay up with the inflation and high living costs.
Due to inflation and growing expenditures the CRA increases the OAS Payments in 2024.
More data for this increase can be found on the CRA Official portal.
John Wick is a Media and Finance editor, passionate about writing and editing content related to finance and taxes. He has achieved dual degree in Mass Media and Finance From one of the top universities in the World. He is keen to learn new things and changes which take place in the world of Finance and stocks.