Childcare Allowance

From RetireWiki.jp

Childcare Allowance (児童手当, jidou teate) is payable to eligible individuals resident in Japan raising children aged 0 to 18 (up until the first March 31 after turning 18). The system was revised in October 2024, with changes including extension of eligibility to 18 (the previous cut-off was 15), enhanced rates of the benefit for families with three or more children, and the removal of an income threshold.

Eligibility

People who are resident in Japan and raising children from 0 years old until the age of finishing high school (the first March 31 after becoming 18 years old) are eligible to receive Childcare Allowance (児童手当, jidou teate).

Children living abroad (except those studying abroad) are not covered by the system. Children who live abroad because they are studying overseas may be eligible, provided:

  • The child had an address in Japan continuously for 3 years up to the day before they no longer had an address in Japan.
  • Less than 3 years have passed since the day the child no longer had an address in Japan
  • The purpose for living abroad is to receive an education, and the child does not live with together with their parents (or the child’s guardian, if the child is under guardianship)

Allowance amount

The amount of the allowance paid per child is as below:

Age of Child Amount of allowance per month
Under 3 ¥15,000 (first and second child)

¥30,000 (third and subsequent children[1])

3 - 18 (up to the first March 31st after becoming 18 years old) ¥10,000 (first and second child)

¥30,000 (third and subsequent children[1])

Payment schedule

Payments will be made six times a year (February, April, June, August, October and December). Each payment will be for the two months preceding the payment month, ie the April payment will cover the amounts due for February and March.

The payments will ordinarily begin for the month after the month of application. However, if an eligible child is born or transfers his/her registered address near the end of the month and an application is made within 15 days of the event, then the first payment will be made from the month of application.

Summary of October 2024 changes

September 2024 October 2024
Income limit for recipients? Yes

(Those above the income limit received a 'special allowance' at a flat rate of ¥5,000 per child instead of the ordinary allowance.)

No
Age range 0 - 15

(Upper age limit is first 31 March after turning 15, ie completion of junior high school in principle)

0 - 18

(Upper age limit is first 31 March after turning 18, ie completion of high school in principle)

Amount of allowance
Age of child Amount of allowance
Under 3 ¥15,000 (all children)
3 - 12 (end of elementary school) ¥10,000 (first /second child); ¥15,000 (third and subsequent children)
12 - 15 (junior high school ¥10,000 (all children)

[Zero if income threshold is exceeded; instead a 'special allowance' applied]

Age of child Amount of allowance
Under 3 ¥15,000 (first / second child); ¥30,000 (third and subsequent children)
3 - 18 (end of high school) ¥10,000 (first / second child); ¥30,000 (third and subsequent children)
Payment schedule Three times a year

(February, June, October)

Six times a year

(February, April, June, August, October, December)

Conditions for 'third and subsequent children’ to apply Household is already financially responsible for 2 or more children aged 18 or below (including the fiscal year in which a child turns 18) and a younger child (or children) falls within the scope of the allowance Household is financially responsible for 2 or more children or young adults aged 22 or below (including the fiscal year in which a young adult turns 22) and a younger child or young adult (or children or young adults) falls within the scope of the allowance

Whilst the revisions will enhance the expected lifetime benefit amount received by all eligible families (due to the extension of eligibility from age 15 to age 18), the most significant increases will be seen by families with three or more children, due to the enhanced rate of benefit payable for families with third and subsequent children. The below table demonstrates this. With the caveats noted in the footnotes, a family with 3 children will receive lifetime benefits under the revised systems which are more than a 70% increase on the old system, and a family with 4 children will receive lifetime benefits under the revised system which are about a 95% increase on the old system. The enhanced benefits will be even more pronounced for families with five or more children.

Benefit amount over lifetime (pre- and post- Oct 2024 changes) →

Family composition ↓

Approximate[2] pre-Oct 2024 lifetime amount Approximate[2] post-Oct 2024 lifetime amount % increase under revised rules
1 child Total ¥2,040,000

(¥15,000 x 36 + ¥10,000 x 150)

¥2,400,000

(¥15,000 x 36 + ¥10,000 x 186)

17.7%
2 children

(4 year age gap)

First child ¥2,040,000

(¥15,000 x 36 + ¥10,000 x 150)

¥2,400,000

(¥15,000 x 36 + ¥10,000 x 186)

17.7%
Second child ¥2,040,000

(¥15,000 x 36 + ¥10,000 x 150)

¥2,400,000

(¥15,000 x 36 + ¥10,000 x 186)

17.7%
Total ¥4,080,000 ¥4,800,000 17.7%
3 children

(2 year age gaps)

First child ¥2,040,000

(¥15,000 x 36 + ¥10,000 x 150)

¥2,400,000

(¥15,000 x 36 + ¥10,000 x 186)

17.7%
Second child ¥2,040,000

(¥15,000 x 36 + ¥10,000 x 150)

¥2,400,000

(¥15,000 x 36 + ¥10,000 x 186)

17.7%
Third child ¥2,610,000

(¥15,000 x 150[3] + ¥10,000 x 36)

¥6,660,000

(¥30,000 x 222[4])

155.2%
Total ¥6,690,000 ¥11,460,000 71.3%
4 children

(2 year age gaps)

First child ¥2,040,000

(¥15,000 x 36 + ¥10,000 x 150)

¥2,400,000

(¥15,000 x 36 + ¥10,000 x 186)

17.7%
Second child ¥2,040,000

(¥15,000 x 36 + ¥10,000 x 150)

¥2,400,000

(¥15,000 x 36 + ¥10,000 x 186)

17.7%
Third child ¥2,610,000

(¥15,000 x 150[3] + ¥10,000 x 36)

¥6,660,000

(¥30,000 x 222[4])

155.2%
Fourth child ¥2,610,000

(¥15,000 x 150[3] + ¥10,000 x 36)

¥6,660,000

(¥30,000 x 222[4])

155.2%
Total ¥9,300,000 ¥18,120,000 94.8%

See Also

Footnotes

  1. 1.0 1.1 The conditions for 'third and subsequent children' to apply are that the household is financially responsible for 2 or more children or young adults aged 22 or below (including the fiscal year in which a young adult turns 22) and a younger child or young adult (or children or young adults) falls within the scope of the allowance.
  2. 2.0 2.1 Amounts will vary according to the birthday as the upper qualification limit is based on an academic year rather than the individual's birthday; in this table, amounts will be calculated up to the 15th or 18th birthday plus 6 months to represent the average case (a child born on 1st October, ie halfway through an academic year); amounts will be slightly higher for children born towards the start of an April-March academic year and slightly lower for children born towards the end of an acadmic year
  3. 3.0 3.1 3.2 From 3 years of age until the end of elementary school, the child qualifies for the enhanced rate (¥15,000) payable to the 'third and subsequent children', and this would be due for 114mo (9yr6mo) in this averaged example. ¥15,000 is also due from birth to 3, so the ¥15,000 rate applies for 150 months in total (birth to completion of elementary school) in this case.
  4. 4.0 4.1 4.2 The child fulfils the criteria to be considered 'third or subsequent child' for the entire duration of the benefit period if the household is financially responsible for at least 2 elder children (or young adults) aged 22 or below (including the fiscal year in which a young adult turns 22) during the period in question