Japan’s Childcare Leave and Benefit Contribution Exemptions
Employers and employees can be exempted from paying health insurance and retirement pension contributions for employees on childcare leave.
Those affected include all employees who have worked for employers for at least 1 year, fixed-term employees with less than 1 year of service, and employees with less than 1 year of service in general, with children up to 18 months old can be eligible.
Employees who take leave to care for a child are not required to make contributions to the national retirement plan or national health insurance for the month in which they start the leave until the month before the month in which they end the leave, with a minimum of 1 month of exemption.
Employers can also request to be exempt from contributions at the same time as their employees, but only if the employee also applies. If the leave lasts more than 1 month, they can also claim an exemption from contributions made for bonus payments.
Employees must apply to their employer for the leave and contribution exemption. The employer then notifies the Pension Service.
This article about Japan’s benefit contribution exemptions during childcare leave is provided by Cornes, Asinta’s benefits consulting Partner in the country. If you need support with your employee benefits in Japan, please contact Asinta, and we will put you in touch with the local experts at Cornes.