The Ministry of Health, Labour and Welfare (MHLW), in coordination with the Children and Families Agency, has announced that the Child and Childcare Support Contribution System will commence with insurance premiums for April 2026 (Reiwa 8). For payroll purposes, deductions will generally begin from May 2026 salary payments.
This system is designed to secure financial resources for expanded child and childcare support measures by collecting contributions together with public medical insurance premiums.
Overview
- System Name: Child and Childcare Support Contribution System
- Purpose: To strengthen measures against declining birthrates and secure funding for expanded child and childcare support (e.g., enhanced child allowances, pregnancy and childcare benefits, improved childcare services).
- Mechanism: Contributions will be collected together with public medical insurance premiums (Health Insurance, National Health Insurance, and the Medical Care System for the Elderly).
- Use of Funds: Legally designated child and childcare support programs only.
Contribution Amount (FY2026 / Reiwa 8)
- The contribution is calculated as:
Standard Monthly Remuneration × Contribution Rate (0.23%) - In principle, the cost is shared equally between employer and employee (50/50).
Example:
If the standard monthly remuneration is ¥300,000:
- Total contribution: ¥300,000 × 0.23% ≈ ¥690 per month
- Employee burden: approximately ¥345 per month
- Employer burden: approximately ¥345 per month
※ The contribution applies to both monthly salary and bonuses.
※ For National Health Insurance and the Medical Care System for the Elderly, contribution amounts are determined by each municipality or insurer.
When Will It Start?
- From April 2026 insurance premiums
- Reflected in payroll deductions from May 2026 salary payments
Key Points for HR Professionals
✔ Payroll System Updates
Payroll systems must be updated to incorporate the new contribution rate for both salary and bonus calculations.
✔ Payslip Display
Although there is no strict legal requirement to itemize the contribution separately, companies should consider how to display it for transparency and employee communication purposes.
✔ Bonus Application
The contribution also applies to bonuses. Careful system configuration is required to prevent calculation errors.
✔ Employees on Leave
Employees on childcare leave or maternity leave will generally follow the same premium exemption rules applicable to existing social insurance premiums.
For HR and payroll professionals, this system introduces a new social insurance-related deduction item.
While the individual financial burden is relatively modest, companies must prepare for system updates, payroll adjustments, and employee communication. Early preparation will help ensure a smooth transition when the system takes effect in April 2026.
