The monthly Old Age Allowance rate will rise to $1,000 from January 1.

Secretary for Labour & Welfare Matthew Cheung said today the Social Welfare Department will process cases as fast as practicable and ensure all 480,000 eligible seniors receive the increase by the Lunar New Year holiday.

"Following the increase to the monthly payment, the annual recurrent expenditure on old age allowance will rise by $1.765 billion," he said.

"In line with the established adjustment mechanism for social security schemes, the old age allowance rate will be adjusted on an annual basis in accordance with the movement of the Social Security Assistance Index of Prices."

The monthly rates for Normal Old Age Allowance and Higher Old Age Allowance are $625 and $705. They will rise to $1,000 across-the-board. The current means test criteria for the normal allowance will remain.