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Last week, Kato met with Prime Minister Fumio Kishida to discuss the said proposal...

Digital Desk: Japanese Ministry of Health, Labor, and Welfare has increased the monetary compensation to encourage new parents to have kids, in a bid to boost the country's decreasing birth rate. Notably, new parents in Japan are paid a 420,000 yen Childbirth and Childcare Lump-Sum Grant following the birth of their child. Japan's Health Minister, Katsunobu Kato, stated that the country plans to raise this figure to 500,000 yen.

Last week, Kato met with Prime Minister Fumio Kishida to discuss the said proposal. The change is likely to take effect in fiscal year 2023. Notably, the 80,000 yen increase would be the highest ever for the grant since its inception in 2009.

The cost of childbirth in Japan is very high, and it is often necessary to pay out of pocket, even if the award is covered by Japan's public medical insurance system. According to reports, the national average for shipping expenses is close to 473,000 yen.

Based on the figures above, even if the grant were raised, new parents would only have roughly 30,000 yen to support their child after the birth, which is not a huge amount.

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