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Yayoi Salary Next Enhances Features for Child and Childcare Support Payment System

Yayoi, Inc., headquartered in Chiyoda, Tokyo, announced significant updates to its cloud payroll service, Yayoi Salary Next, in response to the upcoming Child and Childcare Support Payment System regulations set to take effect from April 2026. This new compliance feature is designed to facilitate accurate payroll calculations, helping businesses to navigate the complexities introduced by this new initiative.

Background of the New Payment System

The Child and Childcare Support Payment System was established based on the “Child Future Strategy” approved by the cabinet on December 22, 2023. Its primary goal is to address Japan's declining birthrate by sharing the responsibility of supporting children and childcare among all generations—including the elderly—as well as businesses. The system is set to be funded through a levy that is collected alongside standard health insurance premiums.

However, the introduction of this system brings new challenges for businesses. With the comprehensive nature of the initiative, many employers may find it difficult to understand the specifics of the new regulations, especially in terms of how to incorporate these changes into their payroll processes. Moreover, variations in how different health insurance associations implement the regulations can complicate the setup and verification tasks.

Additionally, while displaying details of the support payments on pay slips is not mandated by law, it is recommended in employer guidelines, leading to uncertainties about how to best comply and communicate this information to employees. This lack of clarity could lead to employee concerns about rising health insurance premiums and confusion about the reasons behind these increases.

Yayoi Salary Next’s Solutions

In light of these developments, Yayoi Salary Next is rolling out new functionalities aimed at alleviating both employer and employee anxieties. The service is designed to automatically calculate the required contributions related to the Child and Childcare Support Payment System and to reflect these contributions in payroll withholding. This ensures that businesses can comply with the new regulations efficiently and accurately.

Key Updates

1. Automated Calculation and Withholding: From April 2026 onwards, Yayoi Salary Next will automatically compute the appropriate insurance premiums in accordance with the Child and Childcare Support Payment System. For businesses affiliated with the Japan Health Insurance Association, the service will automatically set the required rates, while those working with health insurance unions can manually enter the necessary rates.

2. Optional Pay Slip Disclosure: Although not legally required, users of Yayoi Salary Next can choose to display information regarding the Child and Childcare Support Payments on wage slips. This option allows easier communication of payment details to employees, assisting them in understanding the breakdown of their insurance payments.

As businesses face the reality of these new obligations, Yayoi Salary Next aims to simplify the adaptation process with these updates, enabling smooth payroll operations and adherence to compliance requirements without adding undue strain.

Additional Information

For more comprehensive details about the Child and Childcare Support Payment System, visit the official government website.

For more on Yayoi Salary Next, which combines payroll, attendance management, and labor administration into a cohesive digital service, check out Yayoi’s official site.

About Yayoi Inc.

Yayoi is dedicated to energizing small and medium-sized businesses in Japan through back-office support software, known as the Yayoi Series. With over 3.5 million registered users, the Yayoi Series helps clients streamline their operations. The company leverages its robust customer network, extensive data, industry-leading support services, and partnerships with other organizations, integrating these elements with technology such as AI to facilitate the growth of SMEs in Japan.

• - Founded: 1978
• - Employees: 801 (as of September 2025)
• - Headquarters: Chiyoda, Tokyo

For more information about Yayoi, visit Yayoi Corporate Site.