Child-support allowance system is expanded.

Overview of the Child Allowance System (effective April 1, 2007)

Objective of the Child Allowance System

The objective of the Child Allowance System is to contribute toward stable family life and to invest in both quality improvements and the proper raising of children who will go on to form future generations by making allowance payments to the parents and guardians of children.

How the child allowance system works

1	Payment targets A child allowance is granted to parents and guardians raising children who have not finished elementary school, up to March 31 of the school year in which they reached twelve years of age. However, the allowance is not paid to parents or guardians whose income in the previous year exceeded the income ceiling threshold (or income from two years previous for monthly allowance payments between January and May).
2	Payment procedures Applications for child allowances should be made by the primary earner in homes with qualified children. Upon approval by the mayor of the parent or guardian’s residential city, ward, town, or village (for government employees, by the government), the allowance is paid at the beginning of the month following application.
3	Monthly amount of payment All children aged under three years of age: 10,000 yen Children of three years and above: First and second children: 5,000 yen Third and additional children: 10,000 yen
4	Timing of payment In principle, the combined child allowance payment for the preceding months is paid in February, June, and October each year.
5	Income ceiling threshold The income ceiling threshold is based upon the previous year’s income (or income from two years previous between January and May). There are also fixed income deductions. Please note that the income ceiling threshold may change each year. Contact municipal, ward, town and village offices for details (government employees should enquire at their workplaces). Details of the income ceiling threshold have been provided below.

(unit: 10,000 yen)

Number of dependents	Self-employed (Contributors to the National Pension Fund)	Salaried workers (Contributors to employee pension plans)
0	460.0	532.0
1	498.0	570.0
2	536.0	608.0
3	574.0	646.0
4	612.0	684.0
5	650.0	722.0

Note 1: The income ceiling threshold for parents and guardians with spouses or dependents who qualify for tax deductions for the aged as stipulated in the Income Law, shall be raised by 60,000 yen per qualified spouse or dependent on an annual income basis from the amounts specified on the left.
Note 2: In families of six dependents or more, the income ceiling will be the amount specified on the left plus 380,000 yen per dependent (or 440,000 yen in the case of spouses or dependents eligible for tax deductions for the aged).