1. Introduction
Going forward, we will provide regular updates on legal changes and information related to social insurance and labor management. This month, we would like to introduce the Reduced Working Hours System Benefit for Childcare, effective from April 1, 2025. Please note that this is only a summary, but feel free to contact us for more details or changes.
2. Overview of the System
The " Reduced Working Hours System Benefit for Childcare " is a program designed to support employees covered by unemployment insurance whose income decreases because of a reduction in working hours in order to care for a child under the age of two.The benefit aims to support work-life balance and encourage flexible working arrangements.
3. Eligible Recipients & Requirements
This benefit is available to individuals who meet both of the following conditions;
ⅰ) Insured employees who reduce their weekly working hours to care for a child under the age of two.
*Even those working under reduced working hours for childcare before April 1, 2025 will be eligible for
monthly payments from April 2025 onwards.
monthly payments from April 2025 onwards.
ⅱ) Employees who have started reduced working hours immediately after receiving childcare leave
benefits or have been enrolled in the unemployment insurance system for at least 12 months within
the two years prior to starting the shortened working hours.
Additionally, benefits are paid for months in which the following conditions are met;
ⅲ) Individual was insured under the employment insurance system for the entire month.
ⅳ) Individual worked shortened hours during the month in question.
ⅴ) Individual did not receive childcare leave or caregiving leave benefits during the month.
ⅵ) Individual was not eligible for the Continuous Employment Benefit for the Elderly during the month.
4. Benefit Duration & Amount
The benefit is provided from the start of the shortened working hours until the child turns two years old. The benefit amount is generally equivalent to 10% of the wages earned during the shortened working hours.
However, the total payment (including the benefit) will not exceed the wage level at the start of the shortened working hours.
The benefit will not be paid in the following cases;
ⅰ) If the wages received during the month of eligibility are the same or higher than those before the
employee began shortened working hours.
ⅱ) If the shortened working hour wages received during the month exceed the limit (459,000 yen).
ⅲ) If the benefit amount is less than the minimum amount (2,295 yen).
*The limits of 459,000 yen and the minimum amount of 2,295 yen are set until July 31, 2025,
and will be updated annually on August 1.
5. Application Process
Applications must be submitted through the employer within four months from the first day of the eligible month. Generally, applications for two months’ worth of benefits should be submitted together every two months.*Please be aware that failure to submit an application within the deadline may result in ineligibility for benefits.We will assist with the application process, but may ask for verification of eligibility or the preparation of necessary documents. Please feel free to reach out for more information.
6. Conclusion
Significant changes related to childcare and caregiving leave are expected this year, including the introduction of this benefit. To ensure smooth implementation and effective communication with employees,
we recommend reviewing your company's Employment Rules and Childcare Leave Regulations.Specifically, it is advisable to clearly outline the conditions for using the reduced working hours system and the application process in your Employment Rules. This will help prevent disputes and improve the transparency of the system.ARK Social Insurance And Labor Advisors Corporation is here to support the revision of your Employment Rules to comply with the latest legal changes. We can assist with revisions, suggestions on employee communication, and even submissions to the Labor Standards Inspection Office.
We are also able to assist with changes related to the recent revisions of Childcare and Caregiving leave laws, so please do not hesitate to reach out.
For inquiries, please contact:
ARK Social Insurance And Labor Advisors Corporation
Query on the phone+81-3-6821-9455