Calculating the Cost of Child Support

Apr 09, 2024 | News On Japan

TOKYO - To secure funding for measures against the declining birthrate, the Agency for Children and Families has compiled an estimate of the amount that employees, such as company workers, will contribute based on their annual income through the "support fund system" collected via public health insurance.

For the fiscal year 2028, it is estimated that individuals with an annual income of 6 million yen will pay about 1,000 yen per month, while those earning 10 million yen will pay about 1,650 yen. The government plans to collect 600 billion yen in the initial fiscal year of 2026, 800 billion yen in 2027, and 1 trillion yen from the fiscal year 2028 onwards for the "Child and Childcare Support Fund System," which will serve as one of the financial resources for countermeasures against the declining birthrate. This system is to be funded through public health insurance.

The amount contributed by employees and civil servants enrolled in "employee insurance" will be determined based on income, and the Agency for Children and Families has recently compiled these income-based estimates. According to the estimates, in the initial fiscal year of 2026, individuals with an annual income of ▽2 million yen will pay about 200 yen per month, ▽4 million yen will pay about 400 yen, ▽6 million yen will pay about 600 yen, ▽8 million yen will pay about 800 yen, and ▽10 million yen will pay about 1,000 yen. Furthermore, in the fiscal year 2028, individuals with an annual income of ▽2 million yen will pay about 350 yen per month, ▽4 million yen will pay about 650 yen, ▽6 million yen will pay about 1,000 yen, ▽8 million yen will pay about 1,350 yen, and ▽10 million yen will pay about 1,650 yen.

Regarding this, the Agency for Children and Families anticipates that if wage increases continue, the overall compensation amount will increase, which could result in lower contribution amounts based on annual income. Minister in charge of Children's Policies, Kato, stated at a press conference, "We have presented figures calculated mechanically based on the total compensation of the fiscal year 2021. We hope it will contribute to the discussion."

Source: NHK

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