On the first day of the month, there are several financial changes affecting personal finances. Approximately one million small pensions are set to increase by up to 100 euros gross, with an average monthly amount between 50 and 60 euros. This increase was part of the pension reform in April 2023 and was implemented for new pensions starting on September 1, 2023. However, for retirees already receiving pensions at that time, there were two scenarios: 600,000 saw an immediate increase in their pensions, while another million had to wait for the necessary calculations to be completed.
The wait for the pension increase is expected to end with the payment in September, which will be made on October 9 for most retirees. Those in the Alsace-Moselle region will receive their September pension on September 2. The increase will be retroactive, meaning the additional amount for the past twelve months will be included in the September pension payment. This long-awaited increase in small pensions is a welcome change for many retirees who have been patiently waiting for this adjustment.
In addition to the pension increase, there has been a slight decrease in the reference selling price of natural gas (PRVG) for customers connected to the distribution network operated by GRDF. The PRVG decreased by 1% in September compared to August, reaching 130.21 euros including tax per megawatt hour. This reference price is intended to help consumers compare offers and is based on the average costs incurred by suppliers for the provision of natural gas to residential customers, including supply and non-supply costs.
Another financial change that occurs in September is the automatic substitution of the withholding tax rate. This new rate is calculated based on the taxpayer’s income declaration from the previous spring, reflecting the earnings received in 2023. However, if the taxpayer has modified their tax rate since the beginning of the year and the chosen rate is higher than the one calculated by the tax authorities, the substitution will not take place until January 1, 2025. This annual adjustment ensures that the tax withholding is in line with the taxpayer’s current financial situation.
Overall, September brings important financial changes for many individuals, including the increase in small pensions for around one million retirees, the decrease in the reference selling price of natural gas, and the automatic substitution of the withholding tax rate. These changes have various implications for personal finances and highlight the importance of staying informed about updates that may impact individuals’ financial situations. As the month progresses, it is essential for individuals to review their pension amounts, gas prices, and tax withholding rates to ensure they are prepared for any financial adjustments.
