With the introduction of a new support measure, an increasing number of male workers are taking childcare leave. Since their childcare leave period is relatively shorter than that of female workers, companies need to be careful about when they are exempted from the payment of social insurance premiums. This article looks at the rules regarding premium deduction from monthly salaries and bonuses.
[1] Exemption of premium deduction from monthly salaries
1. An employee is on childcare leave at the end of a month
Regardless of the length, a worker who is on childcare leave at the end of a month is exempted from the payment of social insurance premiums for the month.
Example 1) Childcare leave period: Nov 29 – Dec 2
The worker is on leave as of Nov 30 è Premiums for November will not be deducted.
2. An employee takes childcare leave for 14 days or more during a month
If a worker takes childcare leave for at least 14 days within a month, premiums for the month will be exempted.
Example 2) Childcare leave period: Dec 2 – Dec 15
è Premiums for December will not be deducted.
The second rule applies to childcare leave that starts and ends in a same month. If the leave period lasts 14 days or more over two months, premiums for the second month will not be exempted. (Example 3)
Example 3
Childcare leave period: Nov 29 – Dec 15
Only the premiums for November will be exempted.
[3] Deduction from bonuses
Workers who take childcare leave continuously for a period exceeding one month are exempted from the deduction of premiums from bonuses. This rule is applicable to workers taking childcare leave as of the end of a month when a bonus is paid. Even if a worker is exempted from premium payment, the employer needs to submit a bonus payment report to the Pension Office.
Application forms of the Employment Insurance scheme’s “Parental(paternity) Leave Support Benefits” and “Childcare Leave Benefits” are different, while the same application form can be used for the exemption of social insurance premium payment for both types of leave.
[Reference]
The Japan Pension Service, “Procedure for employees (enrolled in the health insurance and employees’ pension insurance) took or extended childcare leave, etc.
https://www.nenkin.go.jp/service/kounen/hokenryo/menjo/ikuji-menjo/20140327-05.html
*The information is based on laws and regulations as of the date of the original article.
