Japan weighs annual ¥5,000 benefit for low-income workers

Japan's government is considering an annual payment of around ¥5,000 for low-income workers as part of a proposed benefit program tied to earnings. Government documents describe the figure as a reference for determining payments, rather than a settled amount.

The proposed structure would give a fixed payment to workers earning no more than ¥1.19 million annually. Benefits are expected to rise gradually as earnings approach ¥1.6 million, then decline once income passes a certain level.

The government plans annual benefit spending of ¥600 billion, equivalent to 1% of the consumption tax. Its documents say that dividing that sum on a per-capita basis produces ¥5,000, which it will use as a reference when considering payments for low-income earners.

The documents were submitted to a board meeting of the House of Representatives' Financial Affairs Committee. The committee is examining legislation covering the benefit program and a two-year cut in the consumption tax on food from 8% to 1%. Finance Minister Satsuki Katayama has emphasized that the figures are illustrative and that the government has not put forward its proposals.