Fiscal System Subcommittee discusses social security; FY2027 budget requests total JPY 39.7 trillionTalking about social security money for next year's national budget
On November 4, 2026 (Reiwa 8), the Ministry of Finance published the material "Social Security" distributed at the Fiscal System Subcommittee. Budget requests for social security for FY2027 (Reiwa 9) total JPY 39.7 trillion, against JPY 39.1 trillion for social security expenditure in the initial FY2026 budget. The material lists as issues for the FY2027 budget the triennial revision of long-term care and disability welfare fees and the revision of drug prices, the revision of public assistance standards, a review of the share of medical costs paid at the counter by people aged 70 and over and of the threshold for the 20 percent co-payment in long-term care insurance, and work on a target for the social security burden ratio.
Key points
- Budget requests for social security for FY2027 total JPY 39.7 trillion (pensions JPY 13.9 trillion, medical care JPY 13.0 trillion, long-term care JPY 3.8 trillion, measures for the declining birthrate and child-rearing JPY 4.5 trillion, welfare and others JPY 4.5 trillion). Social security expenditure in the initial FY2026 budget is JPY 39.1 trillion
- The JPY 39.1 trillion of social security expenditure in FY2026 is an increase of JPY 760 billion from JPY 38.3 trillion the previous year
- FY2027 falls in the three-year revision cycle. The material says the revision of long-term care and disability welfare fees should be carried out with clear priorities, responding to pay improvements and price increases while also pursuing appropriate levels from the standpoint of service quality and of restraining rises in insurance premiums and public funding. Drug prices are to be revised after grasping actual market prices
- On reform of medical and long-term care insurance, the material raises a review of the share of medical costs paid at the counter by people aged 70 and over, on the premise of due care that necessary treatment remains available, in order to achieve fair ability-to-pay burden sharing that does not depend on age compared with the working generation, for whom the share is 30 percent in principle. It also raises a conclusion on the threshold for the 20 percent co-payment in long-term care insurance and consideration of how financial income and assets are treated in medical and long-term care insurance
- The material says efforts will be made so that the social security burden ratio in FY2027 does not rise compared with FY2025, and that during FY2026 the specific reform items and their timetable will be clarified and implemented in sequence
What to do in practice
- Because premium rates and fee revisions will be settled through the coming budget process and legislative discussions, do not build them into cash-flow plans until confirmed content is published, but follow the discussion
- Providers of medical, long-term care and disability welfare services should check whether their own service categories fall within the scope of the FY2027 fee revision discussion
The taxes and insurance premiums the country collects pay for pensions, medical care, long-term care and child-rearing. All of that together is called social security. On November 4 a panel of experts at the Ministry of Finance discussed the money for social security, and the material from that meeting was published. The ministries asked for JPY 39.7 trillion for next year. The amount already set for this year is JPY 39.1 trillion, so the request is larger. Which parts will go up and which will be held down has not been decided yet.
- 1. Ministries askThe ministries asked for JPY 39.7 trillion for social security next year
- 2. Experts reviewOn November 4 a Ministry of Finance panel discussed that amount and the issues with the system
- 3. Still to be decidedWhich parts go up and which are held down will be settled in the discussions ahead
Points
- The ministries asked for a total of JPY 39.7 trillion for social security next year
- The amount set for this year is JPY 39.1 trillion, and the year before that it was JPY 38.3 trillion
- The material from the November 4 meeting lists, as issues, reviewing the share older people pay at hospital counters and how money paid for long-term care services is decided. None of this has been decided yet
What the words mean
- Social security
- Pensions, medical care, long-term care, child-rearing and other systems in which everyone supports one another
- Budget request
- The amount a government ministry asks for in the previous year, saying how much it will need next year
- Insurance premium
- Money that workers and their employer pay in every month to prepare for illness, injury and old age
- Ministry of Finance: Ministry of Finance, Fiscal System Subcommittee (meeting of November 4, 2026): list of materials
- Ministry of Finance: Ministry of Finance, Fiscal System Subcommittee (November 4, 2026), material "Social Security"
This article previews items that are still under consideration or only requested. Whether they will be adopted, and whether the content or timing will change, is not final. Please check the official source again once a decision is made.
This article summarizes and explains materials published by government agencies and is not advice on any individual case. Rules can change, so for actual procedures and decisions always check the latest original materials and consult professionals such as tax accountants or labor and social security attorneys. English, Simplified Chinese and Traditional Chinese versions are translations prepared from the Japanese articles for convenience. If anything differs, the Japanese text and the original source take precedence.