Standard Remuneration Calculations

This section discusses the rules and elements used to calculate:

• Monthly remuneration.

• Monthly standard remuneration and grades.

• Eligibility for regular decision or occasional revision.

• Retroactive increase or decrease in fixed wages.

Monthly Remuneration

The system is delivered with rules and elements that support monthly remuneration calculations. Some of the highlights are:

• Accumulators track cash and non-cash earnings that are subject to the social insurance premium and monthly fluctuation in the fixed wage portion of salary.

• Variables, formulas, and accumulators track and evaluate the base days for payment in each month for each pay type.

• Formulas calculate average monthly remuneration for appraisal months during which the employee worked sufficient base days.

Monthly Standard Remuneration and Grades

PeopleSoft delivers and maintains the Monthly Standard Remuneration table. View the values and grades in this table on the Rvw SI Std Remun Grades JPN (review social insurance standard remuneration grades) page.

Eligibility for Regular Decision or Occasional Revision

The system uses four subject indicators to track eligibility for occasional revision or regular decision during a salary pay run:

Term	Definition
Occasional Revision	The employee meets all conditions for occasional revision.
Occasional Revision Candidate	The employee's total amount of fixed wages has decreased or increased two months ago. The system calculates the employee's monthly standard remuneration for the previous three-month period and determines eligibility for occasional revision.
Regular Decision	The employee is eligible for regular decision.
Not Applicable	The field will nullify a system-entered value.

The system uses these subject indicators to determine which calculations to perform and which employees to select for reports.

Retroactive Increase or Decrease in Fixed Wages

When an employee has a retroactive increase or decrease in fixed wages, the system calculates the adjusted average monthly remuneration during the appraisal period if enough base days are in the month of retroactive payment. Eligibility for occasional revision is determined based on the adjusted average monthly remuneration.