Maternity leave in Japan
Guaranteed maternity leave in Japan covers a period of 6 weeks prior to the expected birth date to 8 weeks after giving birth. Employee may return to work earlier after getting approval by a medical doctor.
Child care leave in Japan
Child care leave applies to both female and male employees.
Child care leave starts from the day after the maternity leave ends (i.e. 8 weeks after the birth date), to the day before the child reaches the age of 1.
If the employee’s spouse is also on child care leave, the child care leave may be extended up to when the child reaches the age of 1 year and 2 months. The duration each parent may take child care leave should not, however, exceed one year.
Compensation during maternity leave
During maternity leave, the employee salary will be covered by the social insurance up to a limit of around 2/3 of the base salary.
If the company decides to make a certain amount of payment during this period, the amount covered by the social insurance office will be reduced.
i.e. payment by company during maternity leave plus amount covered by social insurance will not exceed 2/3 of the base salary
Income tax, labor insurance and social insurance during maternity leave
No income tax or labor insurance will apply during maternity leave since the worker does not have an income.
In the case where the company decides to make a certain amount of payment, however, both income tax and labor insurance will apply.
Social insurance will apply during the maternity leave period. The most common way social insurance is managed during the period the worker is away, is that the company pays the employee’s part of social insurance on their behalf. Once the employee returns to work, the amount that had been paid by the company on behalf of the employee is deducted from her salary.
Compensation during child care leave
During child care leave, payment will be covered by the labor insurance.
The company may contribute a certain amount of payment during this period.
The total amount, however, should not exceed 2/3 of the base salary.
Income tax, labor insurance and social insurance during child care leave
The employee will be exempt from income tax, labor insurance and social insurance payments during child care leave, provided that she/he does not receive payment form the company.
Duration of maternity leave
Maternity leave starts 42 days before the due date.
Maternity leave ends 56 days after the actual birth date.
If the birth of the child is delayed, the days between the due date and the actual birth date also count as maternity leave period.
Example: Due date: 1st July, actual birth date: 5th July
In this case, maternity leave starts on 21st May and ends on 30th August.
Since the 4 days between the due date and the actual birth date is also considered to be the maternity leave period, the total maternity leave becomes 102 days (42 + 56 + 4).
Duration of child care leave
Child care leave starts the day after maternity leave ends.
Child care leave ends the day before the child’s first birthday.
Example Birth date: 5th July
Child care leave starts on 31st August and ends on 4th July the following year.
Disclaimer: This information is for illustration purpose only. JMC cannot be held liable for any decision made based on this information. For any advice regarding taxes in Japan, Licensed tax accountant should be consulted.