What changes
The Act Partially Amending the Act on Child and Child-rearing Support (Act No. 47 of 2024, promulgated 12 June 2024) created a new levy to fund expanded child allowances, higher parental leave benefits and childcare services. It is collected by health insurers alongside health insurance premiums.
For employees in the Japan Health Insurance Association, the rate is 0.23% of standard monthly remuneration from April 2026 contributions, normally deducted from May pay. It also applies to bonuses and is split equally, so 0.115% from each side. Employers in a health insurance society pay it through the society, which notifies its members of the rate.
The levy is being phased in. The Children and Families Agency's planned totals are about 600 billion yen in fiscal 2026, about 800 billion yen in fiscal 2027 and about 1 trillion yen in fiscal 2028. Its estimate for employee insurance in fiscal 2028 equates to about 0.4% of pay, or 0.2% from each side. Actual rates for fiscal 2027 and 2028 will be announced each year.
The levy is separate from the employer-only child-rearing contribution of 0.36%, collected with pension contributions, which continues.
Who it applies to
Every employer and every employee enrolled in public health insurance, including foreign staff. Employees exempt from health and pension contributions during childcare leave are also exempt from the levy.
Action for employers
- Check that payroll has applied it. Confirm since May 2026 pay that the levy is deducted from salaries and bonuses and shown on payslips.
- Budget for a rising cost. Plan for roughly double the fiscal 2026 rate by fiscal 2028.
- Prepare a short explanation for staff. Employees ask why net pay fell; it is a new statutory charge, not a premium increase.
- Watch for your insurer's notice each spring. The rate is announced year by year, so update payroll as soon as the fiscal 2027 figure is published.
Sources
- Act Partially Amending the Act on Child and Child-rearing Support and Related Acts (Act No. 47 of 2024).
- Japan Health Insurance Association, child and childrearing support levy rate (0.23% from April 2026).
- Children and Families Agency, estimates of benefits and contributions under the support levy (29 March 2024).