TOKYO, 5th June, 2024 (WAM) -- Japan's parliament enacted a law on 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, Kyodo News reported.
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 greying 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 (US$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.