With childbirth and childcare, there is a lot of money you can receive, and most of it is "tax-free." The lump-sum childbirth allowance of ¥500,000, the maternity allowance during maternity leave, the benefit during childcare leave (from 2025, up to 28 days at "100% of take-home pay"), plus exemption from social insurance premiums and the child allowance. This article gives a full overview, in chronological order, of the money you can receive, the tax and social insurance treatment, and the points to watch for the medical expense deduction on childbirth costs.
① Lump-sum childbirth allowance: ¥500,000 per child (from health insurance. The direct payment system, in which it is paid directly to the hospital, is the mainstream).
② Maternity allowance: during maternity leave (42 days before and 56 days after birth), roughly two-thirds of your salary.
③ The childcare leave benefit is 67% for the first 180 days, and 50% thereafter. In addition, with the post-birth leave support benefit (+13%) that started in April 2025, if you meet the requirements, for up to 28 days it is 80% = combined with the social insurance exemption, about 100% of take-home pay[Ministry of Health, Labour and Welfare].
④ During maternity and childcare leave, social insurance premiums (health insurance and employees' pension) are exempt for both the individual and the company. Your future pension is treated as if the premiums had been paid.
⑤ ① through ③ are all tax-free (no need to report them on your tax return or year-end adjustment). Childbirth costs are eligible for the medical expense deduction, but the ¥500,000 lump-sum allowance is subtracted in the calculation.
The "money you can receive" in chronological order
| Timing | System | Amount guide | Tax |
|---|---|---|---|
| At childbirth | Lump-sum childbirth allowance (health insurance) | ¥500,000 per child | Tax-free |
| During maternity leave (42 days before + 56 days after birth) | Maternity allowance (health insurance / employees) | 2/3 of the standard daily wage × days taken off | Tax-free |
| During childcare leave | Childcare leave benefit (employment insurance) | 67% up to 180 days / 50% thereafter (with a daily cap) | Tax-free |
| Right after the child's birth | Post-birth leave support benefit (from April 2025) | +13% (up to 28 days) → 80% in total = about 100% of take-home pay[MHLW] | Tax-free |
| During childcare (ongoing) | Child allowance (expanded October 2024) | Under age 3: ¥15,000; age 3 to high-school age: ¥10,000; third child and beyond: ¥30,000 per month (no income limit) | Tax-free |
The trick behind "100% of take-home pay" is that (1) the 80% benefit is tax-free, (2) social insurance premiums are exempt, and (3) employment insurance premiums are also zero when the salary is zero — so it comes out to about the same as your usual take-home pay (about 80% of gross). The requirement is that the father takes at least 14 days of childcare leave within 8 weeks after birth, and the mother at least 14 days within 16 weeks[MHLW leaflet].
Exemption from social insurance premiums (quietly a big deal)
- During maternity and childcare leave, upon application, health insurance and employees' pension premiums are exempt for both the individual and the company (premiums on bonuses are also exempt if the leave spans more than one month including the last day of the month).
- Because the exemption period is also counted as a "period in which premiums were paid" and reflected in your pension amount, your future pension does not decrease.
- After returning to work, if you apply for the "special provision for the standard monthly remuneration during the child-rearing period (child-rearing special provision)," even if your salary drops due to shorter working hours, your pension amount is calculated at the level before the drop. It is the leading example of a provision people forget to apply for, so check with your company's HR/labor staff.
- Self-employed people (National Pension Category 1) also have a 4-month exemption of National Pension premiums around childbirth (treated as full payment) (National Pension exemptions and deferrals). National Health Insurance also has reductions such as of the per-capita portion around childbirth.
Points to watch on taxes
- The benefits are all tax-free = they are not counted as income. In a year when your income dropped due to childcare leave, you can often become eligible for the spousal deduction or the special spousal deduction (benefits are excluded from income in the judgment. Spousal deduction). Even in a dual-income household, it is worth checking in the year of childcare leave.
- Childbirth costs are eligible for the medical expense deduction: regular checkups, transportation costs for visits, delivery and hospitalization costs, and so on. However, the lump-sum childbirth allowance (¥500,000) is subtracted as compensation in the calculation (the maternity allowance and childcare leave benefit are not subtracted). For details, see How to calculate the medical expense deduction.
- There is no dependent deduction for children under 16, but because the number of dependents affects the judgment of exemption from residence tax, filling in the "Matters concerning residence tax" section of your year-end adjustment is meaningful.
- Collection of the child- and childcare-support levy has begun from employees' salaries (as a funding source for the child allowance expansion and the like).
FAQ
Is tax charged on the benefit during childcare leave?
No. The lump-sum childbirth allowance, maternity allowance, childcare leave benefit, and post-birth leave support benefit are all tax-free, and there is no need to report them on a tax return or year-end adjustment. Because social insurance premiums are also exempt, even at a benefit rate of 80% your take-home pay comes to about 100% of your usual amount.
Can anyone get "100% of take-home pay," and for how long?
From April 2025, if the father takes 14 days or more of childcare leave within 8 weeks after the child's birth and the mother 14 days or more within 16 weeks, then for up to 28 days a 13% top-up is added to the 67% childcare leave benefit for a total of 80% (equivalent to about 100% of take-home pay). From day 29, it returns to 67% (up to 180 days).
Can I include my wife (husband) who is on childcare leave in the spousal deduction?
In many cases, yes. Because the childcare leave benefit and maternity allowance are tax-free and not included in income, if her/his salary income for that year is ¥1,230,000 or less (from the 2025 tax year), she/he can be eligible for the spousal deduction, and up to about ¥2,010,000 or less for the special spousal deduction. Don't forget to declare it in the year-end adjustment.
Can childbirth costs be included in the medical expense deduction?
Yes. Pregnancy checkups, transportation costs for visits, delivery and hospitalization costs, and so on are eligible. However, the lump-sum childbirth allowance (¥500,000) is subtracted from those childbirth costs as compensation in the calculation. The maternity allowance and childcare leave benefit do not need to be subtracted.
Data sources
- Post-birth leave support benefit (13% top-up, up to 28 days, requirements): Ministry of Health, Labour and Welfare leaflet (August 2025 revised edition) (in Japanese) / Same, system overview (in Japanese)
- Childcare leave benefit (67%/50%, tax-free, social insurance premium exemption): Ministry of Health, Labour and Welfare and Hello Work published materials
- Medical expense deduction and childbirth costs: National Tax Agency No.1124 Specific examples of childbirth costs eligible for the medical expense deduction (in Japanese)
* The benefit caps and procedures depend on the operation of the health insurance and employment insurance you belong to. This article is general information; for whether a specific payment applies, please check with your employer, insurer, or Hello Work.