Old Age Security payments are reviewed four times a year — in January, April, July, and October — and adjusted to match increases in the Consumer Price Index. That’s why OAS amounts can change every three months while Canada Pension Plan amounts change only once a year, each January. For the July to September 2026 quarter, OAS rose 1.2%, bringing the maximum monthly payment to $751.97 for seniors aged 65 to 74 and $827.17 for those 75 and over.
Understanding the quarterly mechanism helps you predict your income — and explains why some quarters bring almost nothing (April–June 2026 rose just 0.1%) while others deliver a noticeable bump.
How Is the Quarterly OAS Adjustment Calculated?
Service Canada compares the average Consumer Price Index over the most recent three-month period with the average over the previous adjustment period. If prices rose, OAS rises by the same percentage the following quarter. Two rules matter:
- Payments never go down. If the CPI falls, OAS stays flat until prices recover.
- Adjustments compound. Each quarterly increase builds on the last, so small bumps add up across a year.
The 1.2% increase for July–September 2026 was the largest quarterly adjustment of the year to that point — more than ten times April’s 0.1% — reflecting the acceleration in gasoline and food prices through the spring.
What Are the OAS Amounts for July to September 2026?
| Age group | Maximum monthly OAS (Jul–Sep 2026) |
|---|---|
| 65 to 74 | $751.97 |
| 75 and over | $827.17 |
The 75+ amount is permanently 10% higher, a boost introduced in July 2022. Your individual payment can be lower if you haven’t lived in Canada for 40 years after age 18 (partial pension), or higher if you also receive the Guaranteed Income Supplement, which is adjusted on the same quarterly schedule.
We covered when the money actually lands in Canada Benefit Payment Dates for August 2026 — OAS is paid in the last week of each month.
Why Does CPP Work Differently From OAS?
CPP is indexed once a year, every January, based on the CPI increase over the prior 12 months. OAS is indexed quarterly. The practical effect: in a year when inflation accelerates mid-year, OAS recipients see relief within months, while CPP recipients wait until the next January. In a year when inflation cools, CPP’s annual adjustment can end up larger than the sum of that year’s OAS bumps. Neither is systematically more generous — they just track prices on different clocks.
Does the Increase Affect the OAS Clawback?
The OAS recovery tax ("clawback") is based on your annual net income against a threshold that is indexed annually — not quarterly. Quarterly payment increases don’t change your clawback exposure by themselves, but higher total OAS income does count toward your net income for the year. If your 2026 income is near the recovery threshold, check your latest Notice of Assessment or the figures at canada.ca — we’re not quoting the threshold here because it’s set annually and should be verified against the official page for your tax year.
When Is the Next OAS Adjustment?
The next review takes effect with the October 2026 payment, based on summer CPI data. Service Canada publishes updated amounts a few weeks before each quarter begins on the OAS payment amounts page. If inflation stays flat through the summer, October’s change could be minimal — that is the system working as designed, since July’s 1.2% already captured the spring price increases.
FAQ
Do I need to apply for the quarterly increase?
No. Adjustments are automatic for everyone already receiving OAS.
Does the quarterly increase apply to GIS too?
Yes. The Guaranteed Income Supplement and the Allowance are adjusted on the same quarterly CPI schedule.
I receive a partial OAS pension. Do I get the increase?
Yes, proportionally. A 1.2% increase applies to your partial amount the same way it applies to the maximum.
Is OAS taxable?
Yes. OAS is taxable income, and unlike CPP, it is also subject to the recovery tax if your net income exceeds the annual threshold.