> The Private School Mutual Aid System > Determining the Monthly Standard Salary

Determining the Monthly Standard Salary

• Because there is no single, uniform pay system used by all private schools, the Mutual Aid System uses a Monthly Standard Salary schedule to assign each member to an income scale. This standard earnings becomes the basis for premiums (short-term, long-term, and nursing care) and benefits paid.
• In addition to the member’s basic monthly salary the Monthly Standard Salary also includes all other allowances received by the member, such as a dependent allowance, commutation allowance, overtime allowance, etc. However, it does not include bonuses up to 3 times a year.
• Although a member’s standard earnings is determined when he or she joins the system, to ensure it correctly reflects the member’s income, it is revised yearly on the basis of the member’s average income for the months of April, May, and June. The Monthly Standard Salary becomes the basis for calculating premiums and benefits paid out for a period between September of that year and August of the following year. If there are significant changes in the member’s income during this period (increase or decrease by 2 scales or more), the Monthly Standard Salary is revised after 3 months of the change (effective from the 4th month).

Determining the Standard Bonus

• The mount of bonuses, term-end allowance, allowance for an examination, and other bonuses that are paid to a member on a basis not exceeding 3 times a year is referred as the “Standard Bonus etc”.
• The member’s Standard Bonus is the total amount of bonuses received by the member within the same one month rounded down to the 1,000th yen. The upper limit for a short-term bonus to be paid annually is set at 5,400,000 yen in total annually (April through next March), and for a long-term bonus to be paid monthly (The total amount of bonus applies if bonus was paid more than once within a single month.) at 1,500,000 yen.
• A member’s Standard Bonus becomes the basis for calculating premiums (short-term, long-term, and nursing care) and Long-Term Benefits (pension) to be paid.

How is the Premium Determined?

• A monthly salary premium is deducted from the member’s monthly income and a bonus premium is deducted from the bonus received by the member.
• The salary premium is the premium rate multiplied by the member’s Monthly Standard Salary.
• The bonus premium is the premium rate multiplied by the member’s Standard Bonus.
• Salary and bonus premiums are paid in equal amounts by the member and his/her employer, the member institution. To determine the amount each has to pay, the total amount payable towards Short-Term Benefits, Nursing-Care, and Long-Term Benefits are calculated and the amount the member and the institution each has to pay is determined.
• A member can apply to be exempted from paying salary and bonus premiums during a period of child-care leave that can last until the child reaches 3 years old.

* Type B members, etc. -- Individuals referred to as the Type B members, special contract members, and civil servant dispatch members to the University of the Air and lower schools.
* For Type A, Type B and Type C members, premiums should be split in half by the member and its institution. For Voluntarily Continued Insurance members, he or she should pay the full premium.

Example of premium calculation (40 years or older and younger than 65 years)

Monthly Standard Salary -- 126,000 yen (5th scale)
Standard Bonus -- 289,000 yen (Total: 289,607 yen)
Premium rates -- Short-Term 6.72/100, Nursing Care 0.918/100, Long-Term 12.784/100

(Salary-based)
Short-Term salary-based premium: 126,000 yen ×6.72/100=8,467.2---8,467 yen (1)
( (1)÷2=4,233.5 yen co-payment by the member: 4,233 yen co-payment paid by the school: 4,234 yen )

Nursing Care salary-based premium: 126,000 yen ×0.918/100=1,156.68---1,156 yen (2)
( (2) ÷ 2 = 578 yen co-payment paid by the member: 578 yen co-payment paid by the school: 578 yen )

Long-Term salary-based premium: 126,000 yen ×12.784/100=16,107.84---16,107 yen (3)
( (3) ÷ 2 = 8,053.5 yen co-payment paid by the member: 8,053 yen co-payment paid by the school: 8,054 yen)

Total salary-based premium: co-payment paid by the member: 12,864 yen co-payment paid by the school: 12,866 yen

(Bonus-based)
Short-Term bonus-based premium: 289,000 yen ×6.72/100=19,420.8---19,420 yen (4)
( (4)÷2=9,710 yen co-payment paid by the member: 9,710 yen co-payment paid by the school: 9,710 yen )

Nursing Care bonus-based premium: 289,000 yen ×0.918/100=2,653.02---2,653 yen (5)
( (5) ÷ 2 = 1,326.5 yen co-payment paid by the member: 1,326 yen co-payment paid by the school: 1,327 yen)

Long-Term bonus-based premium: 289,000 yen ×12.784/100=36,945.76---36,945 yen (6)
( (6) ÷ 2 = 18,472.5 yen co-payment paid by the member: 18,472 yen co-payment paid by the school: 18,473 yen)

Total bonus-based premium: co-payment paid by the member: 29,508 yen co-payment paid by the school: 29,510 yen

Premiums Reference Chart (PDF:59KB)

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