Money In and Out: Changes Affecting People’s Lives in Japan from October 2024

Increases to Child Allowance

As of October 1, the nationwide child allowance is extended to the end of high school (from coverage until the end of junior high school) and there is no longer an income cap, making more households eligible for the payments. The allowance is increased to ¥30,000 from the third child onward. The system takes effect in October, with payments to begin in December. The move targets a reduction in the economic burden on families to tackle the decline in births.

Expanded Pension Coverage

Kōsei nenkin pension coverage for part-time workers is expanded from all companies with 101 or more employees to include all companies with 51 or more employees.

Minimum Wage Hike

The minimum wage will be raised in stages among the country’s prefectures, lifting the national average ¥51 year on year to ¥1,055. Many less populated prefectures have topped the national recommendations in their hikes to try and counter the outflow in workers to heavily urbanized areas. There are 16 prefectures with a minimum wage of more than ¥1,000, and it is highest in Tokyo, at ¥1,163.

COVID-19 Vaccinations

Seniors aged 65 and over, and those aged 60 to 64 with underlying conditions, will be offered regular COVID-19 vaccinations with a maximum out-of-pocket cost of ¥7,000. Those in younger groups may voluntarily receive vaccines, for which they will in principle pay the full amount.

Increased Costs for Drugs with Expired Patents

Charges increase for people who choose to buy original versions of drugs with expired patents rather than generic drugs in the case of 1,095 items for which generic alternatives went on sale five or more years ago, or where generic drugs are used 50% or more of the time. This does not apply when a doctor decides to prescribe out-of-patent drugs or if a pharmacy does not have generic items in stock.

Higher Postal Charges

Postal charges rise from ¥84 to ¥110 for standard letters and from ¥63 to ¥85 for postcards. Excluding rises due to consumption tax hikes, this is the first increase for standard letters since 1994, and the first for postcards since 2017.

(Translated from Japanese. Banner photo © Pixta.)