Japan to extend subsidy to encourage use of childcare leave

Japan's Labour Ministry is earmarking JPY3.76 billion in the next fiscal year for a new subsidy plan that aims to further the use of childcare leave across workplaces, according to reports.

The Mainichi Shimbun reported on Tuesday that the ministry plans to subsidise small organisations that will provide allowances to employees covering for staff who are on childcare leave.

Those eligible for the subsidy will be employers with less than 300 employees, according to the report.

Under the plan, the ministry will subsidise up to JPY100,000 or up to three-fourths of the cost of an allowance provided to a worker who takes over the duties of a colleague who is on parental leave. Another JPY50,000 will be extended for related expenses, with a maximum of JPY1.25 to be subsidised per worker on parental leave.

Meanwhile, the government will also be extending up to JPY30,000 per month for employees working short hours. The subsidy will be provided until the child turns three years old, with a total amount to reach up to JPY1.1 million.

If an employer chooses to hire a temporary employee to cover for the one on leave, the government plans to extend a subsidy of JPY675,000.

According to the report, employers with a "Platinum Kurumi" certification will see the subsidy rate expanded to four-fifths per employee, with other preferential measures extended. This certification is granted to employers who are making progress in childcare support.

Encouraging parental leave

Japan's billion-dollar subsidy aims to encourage employees with children under three years old to take shorter work hours and use their childcare leave, according to the report.

The effort is targeting smaller organisations, which saw a smaller number of male employees taking childcare leave.

In fiscal 2022, a record number of males (17.13%) took childcare leave, with organisations with bigger workforce seeing more men taking the leave.

The country has been taking various measures to encourage employees to use their parental leave entitlements amid Japan's declining birth rate.

Among these measures include making organisations publish their ratio of male employees taking paternity leave.

Japan currently has a paternity leave programme that grants male employee up to four weeks of leave within the eight weeks after a child is born.