Total Fertility Rate Hits Record Low at 1.20
Some Companies Grant Parental Leave to Entire Departments
Japanese Firms Actively Encourage Parental Leave
The Tokyo Shimbun reported on the 21st that an increasing number of companies in Japan are providing additional allowances to employees who take over the duties of staff members on childcare leave. This new trend comes amid a heightened social sense of crisis, as the total fertility rate recorded last year was 1.20, the lowest since related statistics began in 1947.
Sapporo Breweries has decided to pay additional allowances on top of bonuses to employees who cover the duties of those who have applied for childcare leave of one month or longer. The amount varies depending on the job of the employee on leave and the length of the leave. For example, if a section chief takes a one-month leave, colleagues share about 60,000 yen (approximately 530,000 KRW) according to the extent of their job coverage. Sapporo stated, “Through this system, we hope to alleviate the guilt felt by employees on childcare leave towards their colleagues and provide an opportunity for them to take longer leave,” adding, “We plan to encourage employees to take one month off.”
Oki Electric Industry also pays up to 100,000 yen (approximately 880,000 KRW) to colleagues who support the duties of employees on childcare leave of one month or longer.
There is also a method of providing support allowances to entire departments. Toy company Takara Tomy has introduced a trial system that grants support allowances to the department to which the employee on childcare leave belongs. The amount of the allowance is determined based on the salary of the employee on leave. Mitsui Sumitomo Insurance established a childcare leave support allowance system last year and paid additional allowances to about 9,000 employees by April this year.
The Tokyo Shimbun analyzed that Japanese companies are creating these systems to foster an environment conducive to taking childcare leave and to increase the application rate for such leave.
The Japanese government has set a goal to raise the childcare leave rate in private companies to 50% by 2025. From April 2023, companies with 1,000 or more employees are required to disclose the status of childcare leave. In the 2023 fiscal year, about 80% of the top 100 domestic large companies exceeded a 50% usage rate of childcare leave. In particular, Hitachi labor and management agreed to strive for 100% usage of the childcare leave system by the end of the 2025 fiscal year.
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