The Abe administration is pushing for a review of the tax and social security benefits for households with full-time housewives or low-income housewives, on the grounds that such rules serve as disincentives against women's greater participation in the labor force even as the nation faces a steep decline in its working-age population.
In making the review, the government also needs to look at other hurdles that discourage women with children from spending more working outside the house. Otherwise, it could end up merely adding to the burden on households by abolishing or scaling down the benefits.
Salaried workers can have their taxable income reduced by ¥380,000 if their spouses earn less than ¥1.03 million a year. If the spouses earn between ¥1.03 million and ¥1.41 million, the main bread earners can still deduct an amount lower than ¥380,000 from their taxable income. Separately, if the spouses earn less than ¥1.3 million a year, they can be exempt from pension premium payments and be covered by the main bread earners' corporate pension schemes.