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HomeEducationCalculation of the costs of child benefit

Calculation of the costs of child benefit

TOKYOApr 09 (News On Japan) – To secure funding for measures against the declining birth rate, the Agency for Children and Families has estimated the amount that workers, such as company employees, will contribute based on their annual income through the “support fund system” collected through public health insurance.

For the 2028 fiscal year, 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 raise 600 billion yen in the first budget year 2026, 800 billion yen in 2027 and 1 trillion yen starting in the 2028 budget year for the ‘Child and Childcare Support Fund System’, which will serve as one of the financial resources for countermeasures against the declining birth rate. This system should be financed through public health insurance.

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

In this regard, the Agency for Children and Families expects that if wage increases continue, the total compensation amount will increase, which could result in lower contributions based on annual income. Kato, minister in charge of children’s policy, said at a press conference: “We have presented figures calculated mechanically based on the total compensation for the 2021 fiscal year. We hope these will contribute to the discussion.”

Source: NHK

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