Prime Minister Sanae Takaichi said the income-linked benefit paid alongside the consumption tax cut will cover more than 50% of current workers, widening a program the government had put at 30% or more during Lower House debate.
Speaking at a Senate special committee on the tax-cut bill, Takaichi gave the figure in reply to Komeito lawmaker Sugihisa Sugi. She also said the basic payment would be up to about ¥25,000 a person in fiscal 2027 and 2028, funded by roughly ¥600 billion a year.
The government had not previously given a concrete payment amount. The expansion raises the income ceiling for eligibility, pulling more middle-income earners into the program.
Child additions and sliding scale
Payments rise and fall with annual income. The government plans a child addition of about ¥5,000 a child in fiscal 2027 and 2028, which would bring a household of two parents and two children up to ¥60,000 in total.
The design departs from the universal flat-rate benefits Japan has favored, tying the amount to earnings and setting both a floor and a ceiling on eligible income. The lower income threshold for eligibility was among the points still under discussion.