Bill C‑261 Gives GIS Seniors Two Big Wins

Bill C‑261 gives GIS seniors two big wins: a higher OAS base and a more generous GIS work exemption. For low‑income seniors, this combination is rare — government changes usually help one group while reducing benefits somewhere else. But under Bill C‑261, GIS recipients truly win twice, keeping more guaranteed income while keeping more of what they earn.

This article breaks down the math in simple, senior‑friendly terms so you can see exactly how much better off you may be.

Win #1: Higher OAS Base for Everyone 65+

The current OAS system pays less to seniors aged 65–74 and more to those 75+. Bill C‑261 ends that two‑tier structure by raising the base OAS for everyone 65+.

What changes?

• Current OAS (65–74): $743.05/month
• Proposed OAS under Bill C‑261: ~$808.45/month
• Increase: About $65–$74/month
• Annual gain: $780–$888

This increase is permanent and continues to be indexed to inflation.

Win #2: Higher GIS Work Exemption

This is the second major win — and it’s a big one.

Old GIS exemption rules:

• First $5,000 of work income ignored
• Half of next $10,000 ignored

New rules under Bill C‑261:

• First $6,500 ignored
• Half of next $13,000 ignored

This means seniors can work more, keep more, and lose less GIS.

Simple Example: A Senior Earning $10,000

Let’s break it down clearly.

Under Bill C‑261:

• First $6,500 ignored
• Remaining $3,500 → half ignored = $1,750
• Total ignored: $8,250
• Income counted against GIS: $1,750

Why this matters

Under the old rules, more of that $10,000 would reduce GIS. Under the new rules, over 80% of that income is ignored.

This encourages part‑time work without punishing seniors financially.

Why Bill C‑261 Matters for Low‑Income Seniors

• Helps fight inflation
• Reduces poverty among seniors
• Rewards part‑time work instead of penalizing it
• Simplifies OAS by removing the two‑tier system
• Provides more financial stability for those living on fixed incomes

Frequently Asked Questions (FAQs)

What is Bill C‑261?

Bill C‑261 is a proposed federal law that increases OAS for all seniors 65+ and expands the GIS work exemption so low‑income seniors can keep more of their benefits when they work.

Who benefits the most from Bill C‑261?

Low‑income seniors receiving GIS benefit the most because they get both a higher OAS base and a more generous work exemption.

Does this affect seniors aged 75+?

Yes. Seniors 75+ already receive the higher OAS rate, but Bill C‑261 still improves their GIS work exemption.

Will GIS payments go up automatically?

GIS is recalculated every July based on income. With more income ignored under the new exemption, many seniors will see higher GIS than before.

Do I need to apply for the new exemption?

No. GIS exemptions are applied automatically when Service Canada reviews your income.

Does this change CPP?

No. Bill C‑261 affects OAS and GIS, not CPP.

Disclosure

This article is for general information only. Bill C‑261 is a proposed federal measure, and details may change before becoming law. Seniors should confirm benefit amounts with Service Canada or a trusted financial advisor.

Conclusion

Bill C‑261 is one of the rare policy changes where low‑income seniors truly win twice. A higher OAS base boosts guaranteed monthly income, and a more generous GIS work exemption lets seniors keep more of what they earn. Together, these changes strengthen financial security and give seniors more freedom, dignity, and stability.

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