Income-tested benefits
Clawback
A reduction in a benefit as your income rises above a threshold. You keep the benefit, but receive less.
Clawbacks explain why benefits shrink as income grows, they are not always sudden cut-offs.
Where you may see this
GIS and OAS notices, CCB payment changes, and provincial rent-geared-to-income rules.
Commonly confused with
Overpayment recovery, clawback adjusts ongoing payments; overpayment is money already paid that must be returned.
The exact definition and rules can differ by program. Check the official rules for the benefit you are applying for.
Related terms
Pensions & seniors
OAS recovery tax
A repayment mechanism that reduces OAS payments when your net income exceeds a yearly threshold.
View termAppeals & applications
Overpayment
Benefit money you received but were not entitled to, which the government may recover from future payments or tax refunds.
View term