With amendments to the Childcare and Caregiver Act on October 1, 2022, a new benefit program for employees who use post-childbirth paternity leave has been established. This article explains about changes in the employment insurance program’s childcare leave benefits according to the amendment.
[1] Outline of the post-childbirth paternity leave program
The new program allows fathers to take childcare leave within eight weeks of the birth of a child for up to four weeks. To take leave, a worker has to submit the request to the company at least two weeks in advance. The leave period can be split in two portions. By reaching a labor-management agreement, employees can work during the leave.
[2] Outline of post-childbirth leave benefits
Since the post-childbirth paternity leave program has been established, there are now two types of childcare leave benefits under the employment insurance program: “post-childbirth leave benefits,” which are provided for a period when a worker is taking post-childbirth paternity leave, and “childcare leave benefits,” provided for a childcare leave period.
The newly established post-childbirth leave benefit is similar to the conventional childcare leave benefit in some aspects. Its features are explained in the following section.
1. Benefit requirements
Employees who have worked at least 12 “full months” during the two-year period preceding the post-childbirth paternity leave are eligible to receive benefits. A “full month” means a month with at least 11 basis days, i.e. working days based on which wages were paid. (In the case the number of full months with at least 11 basis days is less than 12, the number of full months with at least 80 hours based on which wages were paid.)
In the case a company pays employees taking post-childbirth paternity leave at least 80% of their wages ([daily wage at the beginning of leave] x [number of leave days]), the workers cannot receive the benefits. If the wage paid during leave is over 13% and less than 80% of their normal wages, the workers can receive reduced amounts of leave benefits.
Employees may work during post-childbirth paternity leave to a certain extent by concluding a labor-management agreement. To receive leave benefits, the number of working days during leave must be no more than 10 (or if the number exceeds 10, no more than 80 hours of work). If the leave period is less than 28 days, the number of work days (or hours) is reduced in proportion. An employee who has worked exceeding the limit cannot receive benefits, regardless of the amount of wages paid.
For fixed-term employees to receive leave benefits, it must be evident that their employment contracts will not terminate within six months after an eight-week period from the birth of the child (*).
2. Amount of benefit
As a basic rule, the amount of post-childbirth paternity leave benefit is calculated as: [daily wage at the beginning of leave] x [the number of leave days] x 67%. Benefits can be received for a period up to 28 days, same as the maximum length of the leave. The daily wage at the beginning of leave is calculated by dividing the total wage for 6 months preceding the leave by 180. The ceiling of the amount is 15,190 yen until July 31, 2023. If a worker also takes childcare leave for the same child and receives childcare leave benefit, the daily wage used for the post-childbirth paternity leave benefit is also used to calculate the childcare leave benefit.
3. Application period
Post-childbirth paternity leave benefit can be applied from the next day after eight weeks have passed from the birth of the child (*) by using the designated form. The deadline is the end of the month during which a two-month period elapses from this day. Although post-childbirth paternity leave can be divided into two portions, a single application is required for the entire leave.
The application form for the first time is “Ikuji kyugyo kyufu jukyu shikaku kakuninhyo (childcare leave benefit qualification confirmation sheet) / ikuji kyugyo kyufukin shikyu shinseisyo (childcare leave benefit application form),” and “ikuji kyugyo kyufukin shikyu shinseisyo” thereafter.
If a worker desires to take childcare leave within eight weeks from the birth of a child (*), the worker has to choose either “post-childbirth paternity leave” or “childcare leave,” because the procedure of benefit application is slightly different. If post-childbirth paternity leave is chosen, benefit application cannot be submitted until the next day of an eight-week period from the birth of the child(*) as explained above. Even if a worker took post-childbirth paternity leave immediately after a child is born, the benefit application cannot be made more than a month after the leave ends. In such case, it is important remember submitting the application. Companies should also inform employees who took live when their benefits are expected to be paid.
*The due date if a child is born before that.
Reference
Labour Ministry “Amendment of childcare leave benefit program on October 1, 2022”
https://www.mhlw.go.jp/stf/seisakunitsuite/bunya/0000160564_00028.html
Labour Ministry “About the Childcare and Caregiver Leave Act”
https://www.mhlw.go.jp/stf/seisakunitsuite/bunya/0000130583.html
The information is valid as of the date of this article.
