Many corporate employees, self-employed people and civil servants can expect to enjoy better and inexpensive welfare services under a new insurance system set to begin April 1 to deal with the nation's rapidly aging population, according to a leading economist.
"A majority of these middle-income earners definitely stand to benefit from the system, despite those aged 40 and older being required to pay a monthly premium of some 3,000 yen," said Yoshiaki Shikano, visiting senior fellow at the 21st Century Public Policy Institute, a think tank founded by the Japan Federation of Economic Organizations (Keidanren).
"Let's say a parent of a corporate employee with an annual income of 8 million yen enters a home for the elderly. Let's also say the parent is a recipient of a pension for former company employees. Under the current welfare system for the aged, the parent and employee are charged a combined 190,000 yen a month. Under the new system the amount will drop to some 50,000 yen -- including meal allowances," he told Kyodo News, referring to government statistics.