What is the Japan childcare support levy and when does it start?

It is a new contribution collected via health insurance premiums to fund child and childcare programs. Collection starts in April 2026. Both employees and employers share costs. Payroll will withhold the employee share each month and record the employer share in company books.

How is the levy collected and who pays?

Insurers add the levy to health insurance bills. Employers deduct the employee share from monthly pay and pay the employer share alongside other social insurance. The exact tables and instructions will come from insurers before April 2026 so payroll can calculate and itemize correctly.

How will freee HR payroll help companies comply?

freee HR payroll plans to auto-calculate the levy and show it as a separate payslip line, splitting employee and employer shares. That reduces manual formula work, speeds processing, and supports clean reconciliations against insurer invoices, which helps small teams meet HR compliance Japan requirements.

What should small businesses do before April 2026?

Run payroll tests with levy scenarios, update deduction masters, and refresh payslip templates. Align dates with insurer billing. Prepare staff FAQs and notices. If you use spreadsheets, consider Japan payroll software with built-in support so you reduce errors and avoid rushed manual fixes at go-live.

Will take-home pay change?

Yes, the employee share will reduce net pay once collection begins. Employers also incur a matching cost. Companies should give early notice, show the new line on payslips, and provide examples so employees understand the change before the first April 2026 payroll.

Law and Government

Japan Payroll February 18: freee automates childcare support levy

ByDanny Kontos February 18, 2026

The Japan childcare support levy will start in April 2026 and will be collected through health insurance premiums. Employers and employees will share the cost. For HR teams in Japan, this changes payroll rules and payslip formats. freee HR payroll plans to auto-calculate and itemize the new line, which can cut errors and time. We explain how the policy works, what HR compliance in Japan requires, and why Japan payroll software could see higher demand.