Calculating your Guaranteed Income Supplement, Allowance, or Allowance for the Survivor Increase

On June 6, 2011, the Government of Canada introduced a new measure in the budget to increase the Guaranteed Income Supplement (GIS), the Allowance (ALW), and the Allowance for the Survivor (ALWS) for seniors with little or no income other than the Old Age Security (OAS) pension and the GIS.

The increase is based on the beneficiary’s marital status and 2010 income.

What do you consider to be income?

To calculate your increase, please refer to the steps below:

If you are a single, widowed, divorced, or separated senior and you:

• make $2,000 or less of annual income (not including OAS benefits), you will receive the maximum increase of $50.40 per month.
• make between $2,001 and $4,448 of annual income (not including OAS benefits), you will receive a portion of the maximum amount. For every $48 of annual income above the $2,000 threshold, subtract $1 from the maximum increase, which is $50.40.
• make $4,448 or more of annual income (not including OAS benefits), you are not eligible for the increase.

For example: If you made $2,048 of annual income (not including OAS benefits), you would start with your income of $2,048 and subtract the $2,000 threshold. You would then divide the remainder by 48 (the rate by which the increase is reduced), which equals $1.

Then, subtract the $1 from the maximum increase of $50.40, which equals $49.40. So, $49.40 is the increase included in your monthly GIS cheque.

If you are married or in a common-law relationship with a partner who also receives OAS benefits and you:

• make $4,000 or less of combined annual income (not including OAS benefits), you will each receive the maximum increase of $35.28 per month.
• make between $4,001 and $7,456 of combined annual income (not including OAS benefits), you will each receive a portion of the maximum. For every $96 of combined annual income above the $4,000 threshold, subtract $1 from the maximum increase, which is $35.28.
• make $7,456 or more of combined annual income (not including OAS benefits), you are not eligible for the increase.

If you are married or in a common-law relationship with a partner who does NOT receive OAS benefits and you:

• make $4,000 or less of combined annual income (not including OAS benefits), you will receive the maximum increase of $50.40 per month.
• make between $4,001 and $8,896 of combined annual income (not including OAS benefits), you will receive a portion of the maximum. For every $96 of combined annual income above the $4,000 threshold, subtract $1 from the maximum increase, which is $50.40.
• make $8,896 or more of combined annual income, you are not eligible for the increase.

If you are a senior who is married or in a common-law relationship with a partner who receives the Allowance and you:

• make $4,000 or less of combined annual income (not including OAS benefits), you will each receive the full increase of $35.28 per month.
• make between $4,001 and $7,456 of combined annual income, you will each receive a portion of the maximum. For every $96 of combined annual income above the $4,000 threshold, subtract $1 from the maximum increase, which is $35.28.
• make $7,456 or more of combined annual income, you are not eligible for the increase.

To determine the amount of your entitlement to OAS benefits, including GIS and the GIS top-up, please see the rate tables.