What Is GIS?

GIS is a monthly benefit paid to low-income seniors who receive Old Age Security (OAS). Unlike OAS which provides partial pensions for 10-39 years of residency or full pensions for 40+ years, GIS has strict income requirements and aggressive clawbacks. See the official Service Canada GIS page for complete details.

2025 GIS Maximums (April-June 2025)

Source: Service Canada, April-June 2025

When you add OAS to the mix, the maximum combined benefits for the lowest-income seniors reach over $23,000 annually. That's not nothing—but let's be clear about who actually receives these amounts.

The GIS Clawback Reality

Here's where GIS differs from OAS: GIS is reduced by 50 cents for every dollar of countable income. But there's good news for working seniors - Service Canada provides employment income exemptions.

GIS Reduction Rate: $0.50 reduction for every $1 of countable income (flat rate - no complex brackets!)

Employment Income Exemptions (effective July 2020):

• First $5,000 of employment income: 100% exempt (no reduction)
• Next $10,000 ($5,001-$15,000): 50% exempt (only $0.50 counts per $1 earned)
• Above $15,000: Fully counts toward GIS reduction

Example calculations:

• Single senior with $10,000 pension income: $982.71 monthly GIS
• Single senior with $10,000 employment income: $982.71 monthly GIS (after exemptions)
• Single senior with $20,000 employment income: $670.21 monthly GIS
• At $22,056 income: GIS drops to $0 for single seniors

The message is clear: GIS is designed to support low-income seniors, with incentives for part-time work through the employment exemptions.

What This Means for Your Planning

The "Don't Count On It" Reality

GIS works as a backstop, not a foundation. If you're like most of my readers who are:

• Contributing to TFSA/RRSP
• Expecting reasonable CPP benefits
• Planning to have some workplace pension or savings

If you're reading this blog, planning your retirement, and making any reasonable effort to save and invest through TFSA/RRSP accounts—you will likely not qualify for GIS in retirement.

That's not a bad thing. It means you'll have your own resources instead of relying on means-tested government benefits.

The Employment Income Advantage

Here's an interesting planning insight if you think you might be eligible for GIS in retirement: the first $5,000 of employment income is exempt from GIS calculations.

That means:

• $10,000 employment income = $837.42/month GIS
• $10,000 investment income = $629.08/month GIS
• Difference: $208.33/month more GIS with employment income

Small details like this matter when you're optimizing every dollar.

What to Do Next

• Continue maximizing your TFSA and RRSP contributions
• Focus on what you can control: your savings rate and investment strategy
• View GIS as a safety net that exists if things don't go as planned
• Don't deliberately undersave hoping to qualify for GIS—the clawback makes it a poor strategy

The most important thing to remember is that GIS was designed as a poverty reduction program, not a universal retirement benefit. If your planning is on track and you're building your own retirement resources, you'll likely "age out" of GIS eligibility—and that's a sign of financial success, not failure.

References

1. Government of Canada. (2025). Guaranteed Income Supplement benefit amounts. Retrieved from https://www.canada.ca/en/services/benefits/publicpensions/old-age-security/guaranteed-income-supplement/benefit-amount.html
2. Employment and Social Development Canada. (2015). Guaranteed Income Supplement take-up rate report. Retrieved from https://www.canada.ca/en/employment-social-development/services/pension/reports/take-up-rate-gis.html
3. Government of Canada. (2025). Guaranteed Income Supplement eligibility. Retrieved from https://www.canada.ca/en/services/benefits/publicpensions/old-age-security/guaranteed-income-supplement/eligibility.html