Politics · Japan · 6 hrs ago
Japan proposes annual payments averaging ¥30,000 for about 20 million workers
Japan's government proposed an income-linked cash benefit for workers facing heavy tax and social insurance costs.
The plan would initially cover about 20 million people in fiscal 2027 and 2028, with payments averaging around ¥30,000 a year.
The government described these figures as a reference, and the final rules are still under discussion.
The benefit is aimed at lower- and middle-income workers, with an individual annual income in the ¥3 million range a possible upper limit.
The payments are tied to a planned cut in food and drink consumption tax to 1% during those first two years.
From fiscal 2029, when the tax rate is due to return to 8%, the government plans to increase the size of the benefit.
Parliamentary debate on a related bill is due to begin on October 20, and the government and ruling party say they want to shape the details with opposition input.
The government proposed annual cash payments averaging about ¥30,000 for around 20 million workers in fiscal 2027 and 2028.
The proposed income-linked benefit is aimed at employed people on low to middle incomes who face heavy tax and social insurance burdens.
The government presented the payment plan to ruling and opposition parties as one reference for further discussion.
The proposal would be funded with about ¥600 billion a year, equivalent to tax revenue from a 1% consumption tax rate.
The payment amount would be adjusted in four stages, and the government has not set a final income limit.
- Who
- The Japanese government proposed the payments for about 20 million employed people, focusing on low- to middle-income workers.
- What
- An income-linked benefit averaging about ¥30,000 a year is proposed for fiscal 2027 and 2028.
- When
- The payments are proposed for fiscal 2027 and 2028. The wider support system is described as starting in April 2029.
- Where
- Japan.
- Why
- The government says the measure is intended to ease the tax and social insurance burden on workers.
This story does not have two clearly opposing sides.
Prime Minister Sanae Takaichi said the government expected about 20 million people to be eligible, describing the figure as a reference.
Takaichi said she was concerned about the burden on households with two parents and two children earning ¥5.1 million or less.
The government presented the average annual payment proposal to ruling and opposition parties as a reference.
A related bill combining a cut to the consumption tax on food and drink with the benefit was scheduled to begin debate in the House of Representatives.
- Proposed average payment
- About ¥30,000 per person per year
- Proposed eligible population
- About 20 million workers
- Initial payment years
- Fiscal 2027 and 2028
- Proposed annual funding
- About ¥600 billion
- Potential income ceiling
- Individual annual income in the ¥3 million range
- Household burden cited by Takaichi
- ¥5.1 million or less for a couple with two children
What people are saying
We are concerned that households with a couple and two children and an income of ¥5.1 million or less have a higher net burden in Japan than in other countries.