Money for Childbirth and Child-rearing: The Government Assumes You Already Know

"When, where, and who do I apply to for the Childbirth Lump-Sum Grant again?"

Have you ever had the experience of frantically searching online after finding out you were pregnant? I was the same. At the government office counter, I was told, "That's for the Health Insurance Association," and when I asked my company, I was told, "That's for the municipal office," leaving me being passed around. Even though the names of the systems are similar, the counters and conditions are all different, and honestly, I thought, "Why is this so complicated?"

However, if you give up here, you are the one who loses out. Most systems related to childbirth and child-rearing are things you won't receive unless you apply for them. Moreover, because the government and companies proceed with the assumption that you "already know," if you don't organize the information, you will end up regretting it later, thinking, "Was there such a system?"

In this article, I have narrowed down the seven major systems you can use from around the time of childbirth through the child-rearing period, and practically organized "who, when, where, and how much." What you really need is the concrete flow of 'if I apply for this at this time, my household budget will be helped in this way'.

Chapter 1: The True Nature of the "Two Allowances" That Are Too Similar in Name and Cause Confusion

The first thing I want to organize is the two systems that many people confuse.

① Childbirth Lump-Sum Grant (Subsidy for childbirth expenses)

A system where 500,000 yen per child (as of April 2023) is provided. This is paid from health insurance, and whether you are a full-time homemaker (or househusband) or a company employee, in principle, anyone enrolled in health insurance can receive it.

• Point: If you use the "Direct Payment System," the hospital will bill the Health Insurance Association directly, so you only need to pay the amount that exceeds 500,000 yen when you are discharged.

② Childbirth Allowance (Subsidy for living expenses during maternity leave)

Money that working people (company employees, public servants) can receive in place of their salary during maternity leave. It only applies to "people enrolled in their employer's health insurance," and those on National Health Insurance are not eligible.

• Benefit amount: Two-thirds of the standard daily remuneration (approx. 650,000 yen if monthly income is 300,000 yen).

• Caution: This is a system you "won't receive unless you apply." The application deadline is within 2 years from the day after the maternity leave ends, but it is realistic to start moving 2 to 3 months after giving birth.

These two have similar names, but the "purpose of the system" is completely different. The Childbirth Lump-Sum Grant is a "subsidy for childbirth expenses," while the Childbirth Allowance is a "subsidy for living expenses during maternity leave." The former can be received by anyone, but the latter is limited to those who are working. If you don't grasp this difference, there are cases where you might mistakenly think, "I'm a full-time homemaker, so I can also receive the Childbirth Allowance."

Furthermore, the Childbirth Allowance is a system you "won't receive unless you apply." It is not the case that the company will automatically handle the procedures; you need to gather the documents yourself and submit them to the Health Insurance Association. After giving birth, you are busy with child-rearing and tend to put it off. However, since the application deadline is "within 2 years from the day after the maternity leave ends," it is realistic to start moving 2 to 3 months after giving birth.

Chapter 2: "Benefits" and "Exemptions" That Support the Household Budget During Childcare Leave

These two are the pillars for "childcare leave" after maternity leave ends.

③ Childcare Leave Benefits

These are paid from employment insurance. From the start of childcare leave until the 180th day, 67% of wages are paid, and 50% thereafter.

• Condition: You must have been enrolled in employment insurance for at least 12 months during the two years prior to the start of childcare leave.

You may not be eligible if you were not enrolled in employment insurance immediately after changing jobs or due to short working hours. Also, if you receive a salary from your company during childcare leave, the benefits may be reduced or not paid at all depending on the amount.

④ Exemption from Social Insurance Premiums (Do not overlook this!)

During childcare leave, health insurance premiums and employees' pension insurance premiums are exempt for both the employee's and the employer's share.

• Benefit: Since the exemption period is still counted as a period of enrollment in the employees' pension, it does not affect your future pension amount.

• Tax saving effect: If your monthly income is 300,000 yen, it is around 40,000 yen per month. If you are exempt for one year, your burden will be reduced by about 480,000 yen. Make sure to clearly communicate your application to your company's HR or general affairs department.

When you combine childcare leave benefits and social insurance premium exemptions, you can calculate that you will secure about 70-80% of your pre-leave take-home pay even during childcare leave. Of course, everyone's household situation is different, but just knowing that "childcare leave does not mean zero income" can provide mental peace of mind.

Chapter 3: The "15-Day Rule" and "Pitfalls" of Child Allowance

⑤ Child Allowance

This is paid from birth until the end of junior high school. Since October 2024, income restrictions have been abolished, and the allowance has been expanded to 10,000 yen per month for the first and second child (15,000 yen for children under 3) and 30,000 yen per month for the third child and beyond.

• Trap: It is not paid just by submitting a birth registration. You must apply separately to your municipality.

• 15-Day Rule: It is only paid from the month following the application. If the procedure is delayed, you cannot receive payment for the intervening period retroactively, so it is safest to do it at the same time you submit your birth registration.

• Moving: If you move, you must complete procedures at both the municipality you are leaving and the one you are moving to. If you do not complete this within 15 days, you will lose out on payments for those months.

When submitting your birth registration, it is safest to add a word at the counter saying, "Please also process my child allowance application." If you are in a different municipality due to returning to your parents' home for childbirth, you can apply by mail or online, but since procedures vary by municipality, it is smoother to check in advance.

Also, while it used to be necessary to submit a "status report" every June for child allowance, this has been largely abolished in most municipalities since 2022. However, if there are special circumstances such as divorce proceedings or domestic violence from a spouse, submission is still required. Please be sure to check when you receive a notice from your municipality.

Precisely because the system is widely known, child allowance is a blind spot where it is easy to think, "I didn't know about the detailed procedures."

Chapter 4: "Medical Expense Subsidies" and "Unique Systems" That Change Depending on Where You Live

⑥ Medical Expense Subsidies for Infants and Children

While implemented in most municipalities, the target age and out-of-pocket costs vary by region.

• Example: In many of Tokyo's 23 wards, it is free until high school graduation. On the other hand, some municipalities may have out-of-pocket costs. This is a major factor to consider when thinking about moving.

Medical expense subsidies are limited to treatments covered by health insurance. Vaccinations (optional ones), health checkups, medicine container fees, and the difference in hospital room charges during hospitalization are not covered. Although it is surprisingly little known, treatments at osteopathic clinics or acupuncture and moxibustion clinics are also not subsidized unless they are covered by insurance.

7. Unique municipal systems

These are hidden support systems that are often not actively introduced at the counter.

• Content: 'Free childcare for the second child and beyond,' 'provision of paper diapers,' 'dispatch of helpers before and after childbirth,' etc.

• Postpartum care services: There is also a system where you can use overnight care by midwives at a low cost (e.g., 5,000 yen per night). Since the usage slots are limited, booking during pregnancy is the key.

• Tip: Call your municipality's 'Child-rearing Support Division' and ask, 'Please tell me about all the systems I can use,' which is the most reliable way.

Chapter 5: Simulation that affects 'profit and loss' when returning to work

Depending on how you work when you return, there are cases where your take-home pay may be reversed.

1. Fluctuation in childcare fees: Childcare fees are determined by the 'household's resident tax amount.' If you were a dependent of your spouse during maternity leave, being removed from dependency after returning to work will affect childcare fees for the following fiscal year and beyond.

2. Revision of social insurance premiums: Even if your salary decreases due to shorter working hours, there is a period where insurance premiums are calculated based on the 'high salary before maternity leave.' After returning to work, don't forget to apply to your company for a 'revision of the standard monthly remuneration.'

3. The 1.3 million yen (1.06 million yen) barrier: If your annual income slightly exceeds the dependency threshold, your take-home pay may decrease due to the burden of social insurance premiums, which could lead to a situation where 'it would have been better not to work.' Let's calculate it in advance using a simulator.

Chapter 6: [Save for later] Money checklist before childbirth

Share this list with your partner and make sure to proceed one by one.

📅 As soon as you know you are pregnant

• [ ] Check with your health insurance provider on how to use the 'Direct Payment System for Childbirth and Childcare Lump-Sum Grant'

• [ ] Get a 'list of available systems' from your municipality

• [ ] Check the conditions for postpartum care services and medical expense subsidies

📅 Around 6 weeks before birth (42 days before the due date)

• [ ] Submit the "Application for Maternity Leave" to your employer

• [ ] Obtain the application form for the Childbirth Allowance

📅 Immediately after birth

• [ ] Submit the birth registration (within 14 days)

• [ ] Apply for the Child Allowance (at the same time as the birth registration)

• [ ] Procedures to add your child as a dependent for health insurance

📅 Around 8 weeks postpartum to during childcare leave

• [ ] Apply for the Childbirth Allowance (obtain a doctor's certificate and submit it)

• [ ] Apply for the Childcare Leave Benefit

• [ ] Confirm that the procedures for social insurance premium exemption have been completed

• [ ] Simulate childcare costs and take-home pay after returning to work

📅 Before/at the time of returning to work

• [ ] Apply for a revision of your standard monthly remuneration if working shorter hours

• [ ] Apply for nursery school enrollment

If you follow this list, you can at least avoid the situation where you miss out on benefits because you forgot to apply. The system is complex, but what you need to do is surprisingly simple. It is important to organize the information and proceed steadily, one step at a time.

Conclusion

The childbirth and child-rearing system is designed so that only those who know about it benefit.

At the very least, make sure you understand these four: Childbirth and Childcare Lump-Sum Grant, Childbirth Allowance, Childcare Leave Benefit, and Child Allowance. For the other three (medical expense subsidies, social insurance premium exemptions, and local government-specific systems), just taking the time to look into them can make a difference of tens of thousands to hundreds of thousands of yen.

When a child is born, life changes completely.
However, if you can reduce your financial anxiety even a little, you can focus on childcare itself.
The preparation for that can only be done now while you are pregnant.

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