Having a Baby in Japan: Money Steps
The ¥500,000 childbirth grant, maternity and childcare leave pay, and medical costs around the birth.
1. Pregnancy and the birth
Health insurance pays a ¥500,000 childbirth grant, usually straight to the hospital. If the birth needs medical treatment, the monthly cap on medical costs applies.
2. Maternity and childcare leave
You receive a maternity allowance and then childcare leave benefits of 67% and later 50% of your pay, tax-free, while your premiums are waived.
3. After the year ends
If your family's medical costs were over ¥100,000, claim the medical expense deduction. Lower income during leave also means lower resident tax the following year.