GIS, the pension supplement for low incomes – What you need to know

The Guaranteed Income Supplement (GIS) is a tax-free monthly benefit provided by the Government of Canada to low-income seniors who receive Old Age Security (OAS) pension. There are three main criteria you must meet to qualify for GIS:

1. Age: You must be at least 65 years old to receive GIS benefits.
2. OAS recipient: You must be receiving the OAS pension to be eligible for GIS.
3. Low income: Your income must be below a certain threshold to qualify for GIS.

The maximum monthly GIS benefit is $1,086.88 for a single person. If your income is above the minimum threshold but below the maximum threshold, you’ll receive a partial GIS benefit.

If you are eligible, Service Canada will contact you when you turn 64 to let you know when you can expect to receive your first GIS payment. If you don’t receive a letter within a month of your birthday, you may need to apply here. It is advisable to apply for GIS benefits at least six months before your 65th birthday to ensure that you receive them on time.

How GIS benefits are calculated:

1. The amount of the GIS benefit is based on your income, which includes your OAS pension, CPP/QPP benefits and other sources of income. Certain deductions, such as income tax, are subtracted from your income to determine your net income. A GIS rate is applied to your net income to determine your benefit amount.

GIS and other benefits:

1. Allowance: If you’re eligible for GIS, you may also be eligible for the Allowance, a monthly benefit for low-income seniors aged 60-64 whose spouse or common-law partner receives OAS.
2. Provincial benefits: Some provinces offer additional benefits to low-income seniors, such as the Ontario Guaranteed Annual Income System (GAINS) or the Quebec Supplement for Low-Income Seniors.