Childcare leave – how is it calculated?

Unclear on which part of the pay slip is used in calculating the 67%/50% rates:

Example payslip – (income section are rough translations)

Income:
B**asic salary: 100,000**
Business Allowance: 20,000
Efficiency Pay: 20,000
Commuting Allowance: 10,000
**Total: 150,000**

Deductions:
Health Insurance: 10,000
Pension: 20,000
Income tax: 4000
Other: 1000
Total deductions: 35,000

**Net Income: 115,000**

Assuming 67% rate for Childcare leave, would the monthly allowance be:

A: 67,000/月 – Based off the “Basic salary”
B: 100,500/月 – Based off the “Income – Total”
C: 77,050/月 – Based off the “Net Income”
D: 93,800/月 – Based off the “Income – Total” minus “Commuting Allowance”
E: 87,100/月 – Based off the “Basic Salary” plus Health Insurace/Pension non-payments
F: Something else

3 comments
  1. The answer is

    A: 67,000/月 – Based off the “Basic salary”

    I’m not sure if they’ll still deduct for medical/pension/taxes or if you have to pay it separately though but you still have to pay so it will go down from there.

    So:
    67,000-10,000-20,000-4000 = 33,000

    Something else to consider – IIRC there is a several months lag between filing for childcare leave and actually getting any sort of payment.

  2. Childcare leave is based on your de-facto base salary, which is your base salary + any fixed allowances you receive per month. For example, if you get 20,000 yen for fixed overtime pay and 10,000 yen for commuting allowance, that is included when your childcare allowance is calculated.

    You don’t need to pay health insurance, pension, and income tax during this time (since you are getting paid insurance money and it is not counted towards income). You’ll need to pay municipal tax, whether it will be to your employer or straight to your municipality depends on how your employer handles it.

    So B is the closest.

    Source: Me, who took childcare leave.

  3. Keep in mind the allowance also has a 300k yen upper limit. If your base is more than 450k, you’ll still only receive 300k.

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