Focused Implementation of Low Birthrate Measures Over 3 Years
The Japanese government has decided to allocate an annual budget of 3.5 trillion yen (approximately 35 trillion won) for the 'Acceleration Plan,' a measure to address the low birthrate. Additionally, it plans to abolish income limits for child allowances and expand eligibility to include high school students.
According to major Japanese media on the 1st, the government has released a draft of the 'Child Future Strategy Policy,' a low birthrate countermeasure containing these details. According to the draft, starting next year and for three years, an annual budget of 3.5 trillion yen (approximately 35 trillion won) will be secured to intensively tackle the low birthrate issue.
A key policy in the low birthrate countermeasure draft is the expansion of child allowances. Currently, child allowances are paid up to middle school students, but by next year, the eligibility will be extended to high school students, and the income limits for parents will be abolished. For children aged 0 to 3, 15,000 yen (approximately 150,000 won) per month will be paid per child, and for children from age 3 to high school students, 10,000 yen (approximately 100,000 won) per month will be paid. For the third child and beyond, regardless of age up to high school, double the current amount of 30,000 yen (approximately 300,000 won) per month will be paid.
By 2026, support for childbirth will be strengthened, including applying public health insurance to childbirth expenses. A system allowing parents to leave their children in daycare centers even if they are not employed will be fully introduced after next year. If both parents take childcare leave, from 2025, the benefit rate of childcare leave pay will be increased so that income does not change for up to four weeks.
The Japanese government plans to secure the funds required for the low birthrate countermeasures by 2028 through reforms in social security expenditure and the establishment of a new 'support fund system.'
Until now, insufficient funds will be temporarily raised by issuing special child bonds. Decisions regarding the new support fund system and other financial matters are planned to be finalized by the end of this year. The government intends to finalize the Child Future Strategy Policy within this month after coordination with the ruling party and others.
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