What is the Guaranteed Income Supplement in Canada?

Guaranteed Income Supplement (GIS) is a government income program for low-income Canadians who also receive Old Age Security. The income paid to individuals is a non-taxable benefit, enabling the payment to go further for individuals receiving Guaranteed Income Supplement.

How to qualify for Guaranteed Income Supplement?

To qualify for Guaranteed Income Supplement, you must be;

• 65 years or older
• Reside in Canada
• Receive Old Age Security (OAS) pension
• Your income is below the maximum annual income level

How Much Income will Guaranteed Income Supplement Pay?

As of 2022, an individual who is single, widowed, or divorced and earning less than $20,208 may qualify for the maximum Guaranteed Income Supplement of $995.99 per month. Additional income rules apply depending on whether your spouse is receiving Old Age Security or not and if you qualify for an allowance.

• If you have a spouse or common-law partner receiving a full Old Age Security pension with a combined income of less than $26,688, you can receive a maximum monthly payment of $599.53.
• If your spouse or common-law partner doesn’t receive an Old Age Security pension and your combined income is less than $48,432, the maximum pension you can receive is $995.99.
• If your spouse or common-law partner gets an Allowance and your combined income is less than $37,392, you can receive a maximum pension of $599.53.

Guaranteed Income Supplement Payment Dates for 2022

Guaranteed income supplement payments are usually made at the end of each month. See the chart below for the exact payment date for 2022.

Can you Receive Guaranteed Income Supplement if you live outside of Canada?

Yes, you may receive your Guaranteed income supplement outside of Canada for a maximum of six months if you meet the following conditions;

• You’ve lived in Canada for at least 20 years after turning 18
• The country you plan to live or work in has a social security agreement with Canada

To determine if the country you plan on living or working in has a social security agreement with Canada, visit here.

Do Immigrants Qualify for Guaranteed Income Supplement?

If you recently moved to Canada as a sponsored immigrant and have lived less than ten years in Canada after 18, you are not eligible for Guaranteed Income Supplement while sponsored. However, you may qualify for the guaranteed income supplement if any of the following occurs to your sponsor;

• They suffer a personal bankruptcy
• They die
• Is imprisoned for more than six months
• Convicted of abusing you

Individuals who are immigrants and not sponsored could still receive Guaranteed income supplement if they also receive Old Age Security.

What is Considered Income for Guaranteed Income Supplement?

In order to qualify for Guaranteed Income Supplement (GIS), your income has to be below a certain amount. To determine if your income meets that criteria, you need to understand what type of income the program considers as income to determine your annual income level. Here are the types of income that are considered income to determine if your overall income meets the program’s income test requirement;

• Canada Pension Plan (CPP)
• Other Pensions you might have, including foreign pension income
• Any money you pulled from your Registered Retirement Savings Plans
• Employment Insurance benefits
• Interest and other investment income
• Capital gains and taxable Canadian dividends
• Net income from any rental properties
• Net employment or self-employment income
  • If you are self-employed and receive a guaranteed income supplement, you can earn up to $5,000 and still receive the benefit. If you earn $5,000 and $15,000 the benefit will be reduced by $0.50 cents for every dollar of income received.
• Work’s compensation payment and alimony

Income that doesn’t count towards your Guaranteed Income Supplement income test includes Old Age Security, Guaranteed Income Supplement, Allowance, or Allowance for the survivor payment.

How Much Income will Guaranteed Income Supplement Pay?

The amount of income the Guaranteed income supplement paid depends on your situation. But as of 2022, the expected payout below depends on which one applies to you.

• A Spouse or common-law partner receiving a full Old Age Security Pension with a combined income up to the maximum annual will receive $599.53 per month.
• A Spouse or common-law partner who doesn’t receive an Old Age Security with a combined income up to the maximum annual will receive $995.99 per month.
• A spouse or common-law partner receiving an Allowance with a combined income up to the maximum annual will receive $599.53 per month.
• A single, widowed, or divorced individual with an income up to the maximum annual will receive $995.99 per month.

To receive the monthly benefits stated above, your income level also has to be below a certain amount. See the chart below which breaks down the maximum Guaranteed Income Supplement (GIS) benefit along with the annual income required to qualify for the monthly amount.

How to Apply for Guaranteed Income Supplement?

Guaranteed Income Supplement is designed to help low-income pensioners, as shown by the income test placed on this program. If you qualify for the program, you will receive a letter automatically advising you of your qualification after turning 64. If you believe you qualify but did not receive the letter, you may apply for your benefit through your My Service Canada Account.

The Guaranteed Income Supplement pension is another government pension income you may qualify for to fund your retirement. Since the program is meant to assist individuals with low income, you may not qualify, and as such, you need to be mindful of the annual income test to qualify.