TOKYO, June 5 (Xinhua) -- Japan's parliament enacted a law on Wednesday to expand monthly child allowances and parental leave, as the country grapples with a declining birthrate.
Under the new law, child allowance coverage will be extended from up to age 15, when many finish junior high school, to age 18 and the household income limit for receiving child allowances will be removed.
Meanwhile, increased benefits will be provided to parents taking childcare leave and daycare services will be expanded so that children are eligible regardless of parental employment status.
To finance these programs, the Japanese government will set up a new funding scheme for children and child-rearing households in fiscal 2026 after the number of babies born in 2023 sank to a record-low 758,631.
The government plans to collect 600 billion yen (4 billion U.S. dollars) in fiscal 2026 under the new scheme and rise to 1 trillion yen in fiscal 2028, by increasing public health insurance premiums, with the government estimating a monthly increase of between 50 yen to 1,650 yen per person.
The bill, which was approved by the lower house in April, passed the House of Councillors on Wednesday with support from the main ruling Liberal Democratic Party and its partner Komeito.
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.
The law comes as the government 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. ■
