OAS increase: how quarterly indexation works and what changes in October 2026

The OAS increase for October 2026

Employment and Social Development Canada has announced that OAS benefits will increase by 1.4% for the October to December 2026 quarter. That brings the total rise over the 12 months from October 2025 to 3.0%. The increase covers the OAS pension and the Guaranteed Income Supplement, Allowance and Allowance for the Survivor.

Service Canada has now posted the new maximums for October to December 2026: $762.50 a month for ages 65 to 74 and $838.75 for 75 and over, up from $751.97 and $827.17 in July to September. The GIS maximum for a single person rises to $1,138.90, the Allowance to $1,448.06 and the Allowance for the Survivor to $1,726.18 a month. The first payment at the new rate is due on October 28, 2026.

How quarterly indexation works

OAS is indexed every quarter, while CPP is indexed once a year. Each review compares two three-month averages of the Consumer Price Index. The first is the latest three months available. The second is the last three-month period that produced an increase in OAS.

Comparing against the last period that triggered an increase, rather than simply the previous quarter, is what stops OAS from ratcheting down. If prices dip for a while, the benefit holds steady, and it only rises again once prices climb past the old high point.

How much did OAS go up in July 2026?

OAS rose 1.2% for July to September 2026. Service Canada published the full calculation, which is a useful model for reading future announcements.

For the October 2026 review, the same method compares the newest three months of CPI data available at the time with the 167.1 average from February to April, since that period produced the July increase. ESDC has published the result: 1.4%.

Recent OAS increases, quarter by quarter

The size of each increase swings with short-term inflation. Some quarters add less than a dollar a month, while a jump in prices can add several dollars at once.

When will the January 2027 OAS increase be announced?

The January 2027 OAS increase is not yet announced. It depends on CPI data for the three months after the period used for October, so it cannot be calculated until those figures are released. As a reference point, the ESDC payments page carried the October 2026 percentage by August 17, 2026, about six weeks before that quarter began, and it listed the new dollar amounts after an update dated September 29, 2026.

Do not confuse this with the CPP. The CPP increase is set once a year from a 12-month CPI average and applies in January only, so the two pensions usually rise by different percentages in January.

Does OAS increase every year, and can it go down?

OAS has risen in each quarter shown above, but an increase is not guaranteed every quarter. If the CPI average does not exceed the last high point, the rate simply stays the same. Service Canada states that monthly rates will not decrease when the cost of living goes down, so deflation cannot shrink the rate.

Your own deposit can still go down for other reasons. A higher recovery tax from July, a new tax withholding request or the loss of GIS after a missed tax return can all reduce the amount you see, even in a quarter when the rate went up. The OAS payment amounts page lists the common causes.

Two other ways your OAS can go up

The 10% increase at 75

Separate from indexation, your OAS pension rises by 10% automatically starting the month after your 75th birthday. See OAS at 75 for the timing and current amounts.

Delaying the start of OAS

If you have not started your pension yet, each month you delay past 65 adds 0.6%, up to 36% at age 70. That increase is permanent, and Service Canada's deferral examples are worked from the current indexed rate. The OAS deferral guide compares the options.