About 1,500 eligible seniors will receive a monthly supplement that amounts to the difference between their income and the benefit's $1,800 threshold.
Appearing in Saskatoon, Draude also announced an increase to the seniors income plan of $50 a month.
Low-income seniors will now receive about $240 a month under the program.
Draude expects about 3,000 seniors to benefit.
Both programs begin July 1.
"Not all of them will receive more of a benefit right now," Draude said Wednesday. "It depends on their income. But this will top the ones that are in most need ... so they have extra cash in their pocket."
She also said the home care benefit could in some cases give seniors "a chance to have a quality of life they wouldn't have had otherwise."