Japan to expand childcare support in 2026 with cash aid

A view of central Tokyo as the Japanese government moves to overhaul childcare, education and wage-related systems from 2026 to address inflation, including a one-time 20,000-yen payment per child, national pension premium exemptions for the self-employed and expanded childcare services. Photo by Asia Today

Dec. 29 (Asia Today) — Japan will significantly expand childcare, education and wage-related support starting in 2026 as part of broader measures to counter inflation and ease financial pressure on working-age households.

The package includes a one-time cash payment of 20,000 yen per child, exemptions from national pension premiums for self-employed parents and a nationwide expansion of childcare services, according to a report Monday by the Yomiuri Shimbun.

Under the plan, children and adolescents who turn 18 by the end of 2025 will receive a one-time payment of 20,000 yen (about $140). The benefit, officially titled the “Child-Rearing Support Allowance for Countering Inflation,” is designed to offset rising living costs such as food prices.

The payment applies uniformly from birth through high school age, with no income restrictions on guardians. Households already receiving child allowances will be paid automatically without a separate application, although payment schedules may vary by local government.

A new “Child and Childcare Support Allowance” system will take effect in April 2026. It introduces a national contribution framework to secure long-term funding for childcare programs, expanding on a previous employer-based scheme by extending contributions to public health insurance subscribers.

Based on 2028 estimates, the average monthly contribution is expected to be about 450 yen per subscriber. The funds will be collected alongside health insurance and long-term care premiums and used to expand child allowances and stabilize childcare support programs, according to the Ministry of Health, Labour and Welfare.

To improve access to childcare regardless of parents’ employment status, Japan will also roll out a nationwide “Childcare for All Children” system in fiscal year 2026. The program offers temporary care, group childcare and parent-child support services for infants and toddlers in households not using formal childcare facilities.

Standard usage fees are set at 300 yen per hour. Pilot programs were conducted in selected municipalities in fiscal year 2025, with nationwide expansion planned from 2026.

Reforms to the national pension system are also included. From October 2026, self-employed workers and freelancers classified as Category 1 insured persons will be exempt from paying national pension premiums until their child reaches one year of age. The exemption period will still count as fully paid service, ensuring no reduction in pension eligibility.

The measure extends childcare-related pension support beyond salaried workers and public servants to include non-regular workers and the self-employed. Eligible individuals will need to file a separate report to receive the benefit.

The Japanese government said the combined measures – including temporary cash assistance, expanded services and reduced insurance burdens – aim to restructure household childcare support and distribute costs more evenly across the working-age population.

Further details will be announced through the health ministry and local government websites as implementation approaches.

— Reported by Asia Today; translated by UPI