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Japan to stop giving child benefit to high-Income families

By on February 3, 2021

 

Currently, Japan  pays a ¥5,000 child allowance as benefit to a family of 4 where husband earns an annual income of 9.6 million yen or higher and wife stays at home full time with two children.

In a bill finalized at a Cabinet meeting on Tuesday, the said benefit will be partially abolished to take effect in October 2022 if it is enacted at the Diet.

The current monthly benefit of 15,000 yen per child under 3 years old and 10,000 yen per older child and before reaching high school age, are provided to families whose income falls under a certain level. Families whose income falls within or above the level still get 5,000 yen per child before reaching high school age.

The income threshold differs according to the number of dependent family members. Under the proposed bill, the 5,000-yen benefit will no longer be paid to such families if the husband’s annual income  totals 12 million yen or higher.

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