Japan's parliament enacted a law Wednesday to expand monthly child allowances and parental leave, as the government seeks to tackle the country's declining birthrate through more equitable burden sharing.
The government will set up a new funding scheme for child-rearing support in fiscal 2026 with higher monthly health insurance premiums after the number of babies born in 2023 fell to a record low in the country's rapidly graying society.
The law comes as the government of Prime Minister Fumio Kishida views the period leading up to 2030 as "the last chance" to reverse the trend, with late marriages and financial worries often cited as reasons for the declining birthrate.
The state plans to collect 600 billion yen ($4 billion) in fiscal 2026 under the new scheme, rising to 1 trillion yen in fiscal 2028. The amount to be shouldered by individuals will vary depending on their income and public medical insurance, with the government estimating a monthly increase of between 50 yen to 1,650 yen per person.
The launch of the new "child support fund" is based on the view that the costs should be shared more broadly and fairly to address the common challenge of boosting the number of children.
The bill, which was approved by the lower house in April, passed the House of Councillors with the backing of the ruling Liberal Democratic Party and its coalition partner the Komeito party.
While the government said the legislation will not impose a substantial burden on people as it will cut social security spending to create the fund, opposition parties have criticized the measure as an effective tax increase.
Child allowance coverage will be extended from up to age 15, when many finish junior high school, to age 18 and the income limit for parents and guardians will be removed.
The current monthly allowance for a third or subsequent child will be doubled to 30,000 yen, with the measures slated to take effect from October.
Among other measures, increased benefits will be provided to parents taking child care leave and day care services will be expanded so that children are eligible regardless of parental employment status.
The law also includes legalizing public support for "young carers," or children who routinely look after their family members, as the government seeks to eliminate regional disparities in providing assistance.
The number of births in Japan has continued to decline, with the figure falling in 2023 to a record-low 758,631, down 5.1 percent from the previous year, according to preliminary government data released in February.
The annual figure has remained below 800,000 since 2022.
