A number of amendments to labor management laws are scheduled for October. This article covers major points of the amendments.
1. Implementation of the amendments to the Childcare and Caregiver Leave Act
Amendments to the Childcare and Caregiver Leave Act will be implemented in October. This includes the introduction of the post-childbirth paternity leave, which can be split in two portions. The newly-launched post-childbirth paternity leave can be taken separately from the existing childcare leave, which can be used until the child turns one year of age. The main point is that employees can work during the leave within the scope set by labor-management agreement.
Work rules (rules on childcare and caregiver leave) that are not in line with the latest law should be revised swiftly. Since companies are likely to receive more inquiries from their employees about childcare leave, it is important for HR and other relevant staff to fully understand the program.
2. Introduction of the post-childbirth leave benefit
As part of the law amendments explained above, a benefit for employees who take post-childbirth leave will be introduced under the employee insurance program in addition to the existing childcare leave benefits. Employees who work during the leave within the agreed limit can also receive the post-childbirth leave benefit. In the case the sum of the wage for the work during the post-childbirth leave and the benefit exceeds 80 percent of the wage before the leave multiplied by the number of leave days, the excess amount will be deducted from the benefit.
3. Changes in the social insurance exemption system during childcare leave
The system to exempt employees from social insurance payment during childcare leave will be changed from October. The premium will be exempted for the month in which the employee starts or ends childcare leave and the leave is 14 days or more. The insurance premium for bonuses will be exempted if an employee takes childcare leave consecutively for at least one month. Since many companies pay bonuses in December, please make sure to explain to the employees planning to take childcare leave around that time.
4. Social insurance application to companies with employees over 100 and less than 500
From October, companies at least 101 employees (enrolled in the employees’ pension insurance program) will become a Specified Applicable Company. This means the criteria for registering part-timers in the health insurance and employees’ pension programs will be changed. Part-timers who regularly work 20 hours per week (and satisfy other criteria) must be enrolled in social insurance. Even if a company does not meet the condition as of October 1, it will become a Specified Applicable Company when the number of employees exceeds 100 for six months in a year, effective the following month.
5. Changes in the employment insurance premium rates
Fiscal 2022 was an unusual year, in which different employment insurance premium rates were set for the first half and the second half. The table below shows premium rates from October 2022. Since the rates will be raised significantly, the burden on employees will increase. Companies should provide explanation to their employees in advance. Please also make sure the premiums will be deducted correctly.
|
To be paid by
Types of business |
(1) Employees |
(2) Employers |
|
|
(1)+(2) employment insurance rates |
|
Rates of unemployment benefit and childcare leave benefit |
Rates for those under multiple employments |
||||
|
General businesses |
5/1,000 |
8.5/1,000 |
5/1,000 |
3.5/1,000 |
13.5/1,000 |
|
Agriculture, fisheries, refined sake manufacturing |
6/1,000 |
9.5/1,000 |
6/1,000 |
3.5/1,000 |
15.5/1,000 |
|
Construction |
6/1,000 |
10.5/1,000 |
6/1,000 |
4.5/1,000 |
16.5/1,000 |
There will be major changes in the childcare leave system in October, making the rules more complex. Correct understanding of the system is essential for payroll calculation. If you face any problem regarding the new rules, please contact us.
