"Japan's Childbirth Incentive Payment to Reach 4.8 Million Yen Next Year... Largest Increase in 13 Years Expected"

Chusaenodongseong Reports Increase Proposal to Prime Minister
Considering Raising Childbirth and Childcare Lump-Sum Payment from 430,000 Yen to 500,000 Yen

On May 1, 2019, when the Japanese era name changed from Heisei (平成) to Reiwa (令和), a couple at a hospital in Saitama smiled as they looked at their baby born that day. Photo by AFP·Yonhap News

[Asia Economy Reporter Kim Jeong-wan] The Japanese government is considering raising the childbirth allowance to 500,000 yen (approximately 4.8 million won).

According to the Yomiuri Shimbun on the 7th, the Japanese government has entered final adjustments on a plan to increase the lump-sum childbirth and childcare allowance by 80,000 yen (about 800,000 won). Currently, in principle, 420,000 yen (about 4 million won) is paid per child in the form of insurance benefits, but from next year, it is planned to be raised to around 500,000 yen (about 4.8 million won). This move comes as criticism arose that even with normal delivery without a cesarean section, the existing government support funds were insufficient to cover childbirth costs, and the Japanese government has accepted this.

Prime Minister Fumio Kishida has previously stated that the "declining birthrate problem is a crisis" and expressed a policy to significantly increase the lump-sum allowance. Minister of Health, Labour and Welfare Katsunobu Kato reported the increase plan related to childbirth and childcare to Prime Minister Kishida the day before, and final coordination is underway within the government.

According to the Ministry of Health, Labour and Welfare, last year the average childbirth cost in Japan (natural delivery) was about 470,000 yen (about 4.5 million won), exceeding the existing lump-sum amount. Including the obstetric medical compensation system premium of 12,000 yen (about 110,000 won), which provides compensation for children with cerebral palsy at birth, the total is about 490,000 yen (about 4.7 million won). Therefore, it is interpreted that the Japanese government judged it necessary to raise the lump-sum allowance to the actual amount spent to reduce the personal financial burden.

This childbirth support measure is related to Japan's low birthrate. Last year, the number of births in Japan recorded 811,604, the lowest since related statistics have been compiled. The Yomiuri reported that "the purpose is to reduce the burden on child-rearing generations and strengthen measures against the low birthrate," and "Prime Minister Kishida will make a final decision soon and announce the increased amount." Last year, Japan's total fertility rate was 1.30, higher than South Korea's 0.81.

This content was produced with the assistance of AI translation services.