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Japan introduces controversial 250 yen child support fee for workers

A small fee with big implications: Japan's latest bid to reverse its shrinking population puts pressure on already stretched workers. Will it work—or backfire?

The image shows a bustling city street in Tokyo, Japan, with tall buildings in the background....
The image shows a bustling city street in Tokyo, Japan, with tall buildings in the background. There are people walking on the sidewalk, vehicles driving on the road, and trees lining the street. The sky is visible at the top of the image, and there is a gap store in the center of the city.

Japan introduces controversial 250 yen child support fee for workers

Japanese workers now face an extra monthly payment of 250 yen to support families with children. The new charge, introduced this week, is part of a government scheme called the Contribution for Child Support and Upbringing. Former Prime Minister Fumio Kishida launched the measure in 2024 to tackle the country's shrinking birth rate.

The additional fee is added to the national health insurance system. It amounts to roughly €1.60 per worker each month. Japan's fertility rate stands at just 1.2 children per woman, one of the lowest globally. The country also faces a demographic shift, with single-person households now making up nearly 40 percent of the population. This trend has raised concerns about the long-term sustainability of the workforce and social services.

The new contribution aims to provide financial help to families raising children. However, the extra cost has proven unpopular among workers. Many are already struggling with rising living expenses and stagnant wages.

The policy was first announced by Kishida's administration last year. It comes as Japan continues to search for ways to boost its declining population. Despite resistance, the government has pushed ahead with the measure, arguing that supporting families is essential for the nation's future. The 250 yen monthly charge will fund programmes for parents and children across Japan. Officials hope it will ease some of the financial pressures on families and encourage higher birth rates. Yet, with many workers unhappy about the new burden, its long-term impact remains uncertain.

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