The amendments to Childcare and Caregiver Leave Act implemented in October 2022 include changes in the exemption rules of social insurance premiums. This article explains about the new rules, which are more complex.
[1] Exemption of monthly social insurance premiums
Until September 2022, if an employee is on childcare leave at the end of the month, social insurance premiums were not deducted from salaries or bonuses paid that month. Under the new rule starting October 1, 2022, if an employee takes childcare leave for at least 14 days in a month and the start and end days of the leave is within that month, the employee will be exempt from the payment of premiums for that month. This is in addition to the month at the end of which the employee is on childcare leave. (Please see the diagram below.)
End of month
|
October |
November |
|
Oct premiums: exempted |
Nov premiums: deducted |
Childcare leave: 3 days
End of month
|
October |
November |
|
Oct premiums: exempted |
Nov premiums: deducted |
Childcare leave: 14 days
Please note that the days following the start and end days of the leave must be in the same month to apply this rule. For example, if an employee takes childcare leave from October 25 to November 15, the number of leave days in November is 14, but the next day of the leave’s first day (October 25) and the next day of the leave’s last day (November 14) are not in the same month. In this case, insurance premiums are deducted in November. The employee will be exempted from the payment for October, since the childcare leave is continuing at the end of October.
When the exemption is given to an employee taking 14 days of childcare leave, the leave does not have to be continuous. For example, if an employee took leave from October 5 to October 11 and from October 20 to October 26, the total number of leave days exceeds 14. In this case, the employee will be exempted from the payment of premiums in October.
[2] Work during post-childbirth paternity leave
The amendment to the Childcare and Caregiver Leave Act in October has enabled male employees to work during post-childbirth leave within the scope of labor-management agreement. The days worked will be excluded from the count of 14 days of leave described in the above paragraph [1].
Work during post-childbirth paternity leave can be counted by the day and hour units. In calculating 14 days of leave, the hours worked should be divided by standard work hours per day (with numbers less than one rounded down.) If an employee whose standard work hours is 8 hours took post-childbirth paternity leave from November 1 to November 28 (total 28 days) and worked for 40 hours during the period, the employee is considered to have worked for 5 days (40 hours / 8 hours). Since the number of leave days will be 23 (28 days – 5 days), the employee will be exempt from premium payment in November.
[3] Exemption of social insurance premiums on bonuses
Until September 30, social insurance premiums were not deducted from a bonus if an employee was on childcare leave at the end of the month the bonus was paid. After October 1, exemption of social insurance premiums on bonuses will be applied to employees taking childcare leave at least one month. A bonus paid in the month at the end of which the employee is taking childcare leave is applicable to this rule.
End of month
|
December |
January |
|
Dec premiums: deducted |
Jan premiums: deducted |
Childcare leave: 3 days
End of month
|
December |
January |
|
Dec premiums: exempted |
Jan premiums: deducted |
Childcare leave: 35 days
Please note that an employee must take continuous childcare leave exceeding one calendar month. In the case an employee took leave from Dec 16, 2022, to Jan 15, 2023, premiums will be deducted from the bonus paid during this period, since the length of childcare leave is just one month. If the employee took childcare leave from Dec 16, 2022, to Jan 16, 2023, the length of leave is one month and one day. In such case, premiums will not be deducted from a bonus paid in December.
The length of leave can include the days when a male employee worked during post-childbirth paternity leave. Please be careful because the rule is different from the counting method for exempting premiums on monthly salaries.
Normally, social insurance premiums become a heavy burden on employees taking childcare leave. Companies are legally required to explain about the payment of social insurance premiums during childcare leave or post-childbirth paternity leave to applicable employees. Please make sure correct explanation will be provided.
Reference
https://www.nenkin.go.jp/oshirase/topics/2022/0729.html
*This article is based on the information as of the date this article was written.
