Japan is set to expand its child-rearing aid program from April by raising insurance premium payments on all households.
Starting Wednesday, the country will launch a program to allow any child to enroll in nursery facilities regardless of whether or not their parents work.
The program will be funded by a child-rearing support fund, with fees collected on top of public medical insurance premiums from all households.
Under the fund program, corporate employees will pay an average of ?500 every month in fiscal 2026 starting Wednesday.
The support fund will also finance child allowances and ?100,000 provided to each pregnant women.
Starting in fiscal 2026, high school tuition will become virtually free for private schools, as it already has for public schools, with families receiving up to ?457,200 per year in tuition aid for each full-time private school student, regardless of income.
Public funds will cover up to ?5,200 per child per month for school lunches at public elementary schools.
Regarding the ?1.3 million annual income threshold separating those who lose their dependent status and are required to pay social insurance premiums from those who do not, the country will start to calculate annual income excluding overtime pay.
Under a program in which the country starts reducing pensions for working seniors, the threshold is currently set at a combined monthly total of ?510,000 in salary and pension income. Starting in April, this will be raised to ?650,000.
Through both threshold changes, the country aims to ease labor shortages and help avoid a situation where people who want to work more cut back their hours.
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