"Child Allowance for High-Income Families Too: Japan's Bold Low Birthrate Policy Unveiled"

Annual Births Fall Below 800,000
Measures to Address Childcare Issues 추진

The Japanese government has decided to eliminate income limits on child allowances and provide them to high-income families as well, in order to address the low birthrate issue. It has introduced strong measures to solve childcare problems, including reviewing free school meals and raising the usage rate of paternity leave among men to 85% by 2030.

According to NHK and other sources, on the 31st, the Japanese government unveiled a draft of a "radically different" low birthrate countermeasure plan proposed by Prime Minister Kishida Fumio. Feeling a sense of crisis as the annual number of births fell below 800,000, the government has designated the next three years starting in 2024 as a focused response period, promoting the "Child and Childcare Support Acceleration Plan" centered on three key policies: ▲strengthening economic support ▲expanding childcare services ▲reforming work styles.

[Image source=AP Yonhap News]

According to the draft, child allowances, currently paid up to middle school students, will be extended to high school students, and income restrictions will be removed.

Currently, the Japanese government pays a monthly child allowance of 15,000 yen (about 150,000 won) for children under 3 years old, and 10,000 yen per month for children from 3 years old up to middle school students. However, if the couple's income is high, they receive only a partial allowance or none at all. Going forward, all families with children will receive the child allowance.

Families with two or more children will receive higher child allowances. The specific amounts will be reviewed in the future.

The government will also promote applying public health insurance benefits to childbirth costs, which currently are not covered, to raise the birthrate. Normal deliveries in Japan have not been covered by health insurance. Instead, the government has paid a lump sum of 420,000 yen at childbirth, which will be increased to 500,000 yen starting next month.

Free school meals will also be promoted, and related issues will be addressed. A system will be established allowing use of daycare centers and similar facilities on an hourly basis regardless of parents' employment status, and the number of childcare workers responsible for infants aged 1 and 4?5 years will be increased.

To reform work styles, the government aims to raise the usage rate of paternity leave among men to 50% by 2025 and 85% by 2030, creating an environment where men and women can cooperate in raising children. Additionally, if couples take childcare leave together for up to 28 days after childbirth, social insurance premiums on childcare leave benefits will be exempted, effectively making the leave pay 100% of the pre-leave salary.

Based on this draft prepared by the Japanese government, a council involving related agencies and experts will fill in the specific details.

The government plans to double the budget related to children and disclose funding measures necessary for low birthrate countermeasures around June. Discussions on funding will be held next month at a newly established ministerial meeting led by Prime Minister Kishida.

Last year, the number of births in Japan was 799,728, a 5.1% decrease from the previous year, falling below 800,000 for the first time ever. The government had estimated in 2017 that the number of births would fall below 800,000 by 2033, but this threshold was breached 11 years earlier than expected.