OIST Graduate University
Policies, Rules & Procedures
Authority:⚫ Approved by the President⚫ Labor Standard Act⚫ Act on Securing, Etc. of Equal Opportunity and Treatment between Men and
Women in Employment⚫ Act on Securing the Payment of Wages⚫ Minimum Wages Act⚫ Act on the Collection, etc. of Insurance Premiums of Labor Insurance⚫ Industrial Accident Compensation Insurance Act⚫ Employment Insurance Act⚫ National Pension Act⚫ Health Insurance Act⚫ Long-Term Care Insurance Act⚫ Income Tax Act⚫ Local Tax Act⚫ Act Concerning Access to Information Held by Independent Administrative
Institutions, etc.

Chapter 34 Compensation
34.1 Policy
The OIST Graduate University administers compensation policies and programs toreflect the value of job duties and responsibilities and to provide competitive andequitable pay. The University’s compensation policies are designed to accomplish thefollowing goals:⚫ Allow the University to attract, retain, and motivate competent employees by
establishing and maintaining a salary structure that is internationally competitive;⚫ Promote internal equity and consistency across diverse University functions;⚫ Establish salary ranges that are broad enough to provide flexibility for management
at the same time as respecting budgetary restraints;⚫ Provide the foundation for a performance-based pay system; and⚫ Uphold transparency and accountability in administrating personnel costs tofunding bodies and general public.

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34.2 General Considerations
34.2.1 Equal Opportunity
The compensation policies will be consistent with the Equal Opportunity Policy [Link:
1.3.2], and there will be no discriminatory treatment in compensation due to race,color, religion, national origin, ancestry, physical and mental disability, medical
condition, marital status, gender, sexual orientation, or age.
34.2.2 Accountability to General Public
As an entity established by a special Act and initially funded by the Japanese
Government, the University is required to provide salaries that are appropriate to thework and understandable to the general public, taking into consideration similar
salaries of national government employees. The University will make available
information regarding the salary levels of its employees and Officers every fiscal year,
based on guidance by the government ministries.
34.3 Rules
34.3.1 Categories of Compensation
Compensation (except for that of Administrative Assistants [link: 34.3.7]) willcomprise;⚫ Annual Salary,⚫ Year-End Bonus,⚫ Overtime Premium, and⚫ Allowances;-

Commuting Allowance (34.3.5.1),-

Housing Allowance (34.3.5.2), and-Away from Home Allowance (for Permanent Employees) (34.3.5.3).

34.3.2 Annual Salary
The University maintains a pay structure based on job categories and responsibility
levels. That is, the University groups positions that are similar in nature and difficultyin terms of duties, responsibilities, and compensation (see 34.3.2.1). The University
studies compensation trends in these job categories (and levels) in order to determine
equitable and consistent rate structures, and to maintain a competitive position in thejob market.
34.3.2.1

Job Classification

All University employee positions (except for those of wage employees which are2
ch34_compensation_en_20221201_cl_revdefined in 34.3.7) are separated into job categories (classification based on similarityof duties and activities) and job levels (classification based on relative difficulty of
the job measured by factors such as 1) responsibility, 2) expected knowledge, skills,
abilities and experience, and 3) complexity of problems) by evaluating job
descriptions. (Chapter 31.5.1.3)
34.3.2.1.1

Promotion“Promotion” is to be promoted to a higher job rank given the result of the annual
performance evaluation and its abilities. Review of the Salary Review Committee:
SRC is necessary for this promotion.
34.3.2.1.2

Demotion･Salary Decrease

Demotion is a movement to a lower job class from the current position. An
Employee is subject to demotion when;⚫ An Employee is rated “Needs Improvement” (3 rating scale, Excellent, Good,
Needs Improvement) for 2 (two) consecutive years at the Annual Performance
Evaluation⚫ The University determines that the employee assigned to his/her position
clearly lacks the necessary qualifications for the position. This demotion must
be reviewed by the Salary Review Committee.
⚫ An employee fails to meet the University’s performance standards and the
University considers it necessary to demote him/her as a disciplinary action（PRP38.3.5）
Following demotion, salary will be reduced by a maximum of 10% of the employee’s
current salary.
34.3.2.2 Salary Plan
34.3.2.2.1 Each job level of each job category has an annual salary range with:⚫ Mid Point: Represents average market income for each level.
⚫ Minimum: a specified percent below Mid Point.
⚫ Maximum: a specified percent above Mid Point.
34.3.2.2.2 The rate range for each level is established and annually reviewed
considering various factors.
34.3.2.2.3 Based on the annual review, changes in rate ranges are proposed by theVice President for Human Resource (VPHR) as necessary. With the review of the3
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SRC established by the CEO/President, these changes are usually made effective
April 1. Changes in rate ranges are applied uniformly to all employees in the range
on the day the changes become effective in principle.
34.3.2.2.4 Individuals will be paid at a rate within the range according to theirability, training, experience, performance and internal equity, subject to theapproval of the Vice President for Human Resource (VPHR), or the CEO/President
for Senior Level Executives and Faculty members.
Annual Salaries of the employees whose contract terms are less than 1 year shall be
proportionated to the length of the contract.
34.3.2.2.5 The Additional Allowance shall be paid based on duty andresponsibility except the base salary if the chief Executive Officer (CEO)/President
set down the criteria separately.
In that case, preceding Chapter 34.3.2(Annual Salary) should not be applied/
34.3.2.3 Merit Increase
Definitions are described in Chapter 36.2.6
34.3.3 Year-End Bonus
Definitions are described in Chapter 36.2.7.
34.3.4 Overtime Premium
34.3.4.1

Overtime Premium is paid monthly to employees for each hour they are

instructed by an authorized supervisor to work in excess of scheduled working hours.
34.3.4.2 The amount of Overtime Premium per hour is calculated by multiplying
the amount of an employee’s hourly salary (Chapter 34.3.6) with the overtime
premium rate specified below.
⚫ Work exceeding the scheduled working hours on days other than statutory
holidays (Sundays and national holidays)-

Up to 60 hours: 25 percent-

More than 60 hours: 50 percent⚫ Work on statutory holidays (Sundays and national holidays): 35 percent⚫ Work at late-night (after 10:00 pm and before 5:00 am): additional 25 percent
34.3.4.3 The Amount of Overtime Premium for Part-time Employees are as
stipulated in the Compensation Rules for Part-time Employees.
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34.3.5 Allowances
34.3.5.1

Commuting Allowance

A Commuting Allowance is paid to employees commuting over a distance of morethan 2 kilometers.
The amount of each commuting allowance is determined based on Compensation
Regulation for Permanent Employees, Compensation Regulation for Fixed-Term
Employees and Compensation Rules for Part-time Employees.
34.3.5.2 Housing Allowance
A Housing Allowance is paid to full-time employees who rent housing for their own
residences and pay the rent themselves. However, a Housing Allowance shall not be
paid to full-time employees who own a house within Okinawa Main Island or
assumes ownership of house within Okinawa Main Island in principle.
The amount is determined based on the attached table.34.3.5.3 Away from Home
Allowance.
An Away from Home Allowance is paid to Permanent Employees who change theirresidence to outside of Okinawa (living separately from their spouse) due to arelocation of workplace instructed by the University or Permanent Employees undersimilar circumstances approved by Vice President for Human Resource (VPHR).
The monthly amount is determined based on the attached table.34.3.6 Rules ofPayment
34.3.6.1

Pay Date. Compensation is paid monthly (for the first day to the last dayof the month) on the 17th of the every month (or on the closest preceding business
day if the 17th falls upon a holiday.)
When an employee is hired, retires, takes Administrative Leave, or experiences anyother changes which affect compensation during the course of the month, his/hermonthly compensation, Commuting Allowance and Housing Allowance for thatmonth is calculated on a pro-rated basis based on the number of scheduled workdays.
34.3.6.2 Early Payment. At the request of an employee, early payment ofcompensation for past work may be made at the discretion of the University whenthe employee or individuals dependent on his/her income is in the following
circumstances;⚫ Required to return to their hometown for unavoidable reasons for a period of
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⚫ Becomes burdened with costs arising from marriage, funeral, birth, illness,calamity or death.
This also applies to the case where an employee leaves the University for retirement
or dismissal.
34.3.6.3 Pay Method. Compensation is directly paid in cash to employees.
However, with the consent of the employee, it may be paid by electronic transfer
directly into saving accounts in a bank or other financial institutions designated by
the employee.
34.3.6.4 Deduction. Compensation is paid after deducting the payments that the
University is allowed or required to deduct under laws, regulations or a writtenagreement concluded with the Employment Representative.
34.3.6.5 Monthly, Daily, Hourly Salary. The amount of monthly, daily and hourlysalaries are calculated by the following formulas:⚫ Monthly: [Annual Salary] divided by 12 (or the number of months of theemployment contract if that is less than 12.)
⚫ Daily: [Monthly Salary] divided by [[the number of days of the month] minus[the number of holidays of the month]]⚫ Hourly: [Monthly Salary] divided by [the average monthly number of regularlyscheduled working hours]
34.3.6.6 Fractions. In the calculation of compensation, fractions of less than 0.5
yen will be rounded down and fractions of between 0.5 yen or more and less than 1
yen will be counted as 1 yen.
34.3.6.7 Absence and Leaves. The amount for each day and each hour of absence(including lateness and leaving early) or un-paid leaves, calculated with daily andhourly salary (34.3.6.5), will be deducted from the monthly salary.
During the period of the paid leave (except for Administrative Leave) listed in
Chapter 33.3.1, the regular compensation to be paid when employees work forscheduled working hours will be paid.
Compensation for employees on Administrative Leave is set forth in Chapter 33.3.9.
34.3.7 Salary of Administrative Assistants
34.3.7.1

Categories of Compensation. Compensation of Administrative Assistants(part-time employees (Chapter 30.2.2.3.2) who are engaged in routine clerical duties
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is usually made up of:⚫ Base Salary;⚫ Overtime Premium; and⚫ Commuting Allowance.
34.3.7.2

Base Salary. Base Salary is determined by the number of scheduled workdays per month and an hourly wage individually decided by the HR Management
Section between Okinawa prefectural minimum hourly wage and 2,500 yen per hourdepending on their job description and their experiences.
34.3.7.3

Compensation is paid monthly with the last day of the month as the wage

cutoff date, on the 17th day of the following month (or on the closest precedingbusiness day if the 17th falls upon a holiday.)
34.3.7.4 Reduction of Compensation. When an Administrative Assistant does notwork during his/her scheduled work hours (aside from paid holidays), theemployee’s compensation is reduced by one hour of wages for each hour theemployee does not work.
34.3.7.5

The following provisions are applied to Administrative Assistants.

⚫ Overtime Premium (34.3.4)(“Hourly salary” in 34.3.4 is replaced by “hourly wage.”)⚫ Rules of Payment (34.3.6) except for 34.3.6.1, 34.3.6.5, and 34.3.6.7.
34.3.8 Temporary Measures for Transition
Notwithstanding the rules set forth from PRP Chapter 34, with regard to any mattersof employee compensation, the provisions of the following rules basically transferredfrom the OIST Promotion Corporation will be applicable for the time being in orderto achieve a smooth transition from the OIST Promotion Corporation to the OISTSchool Corporation.
⚫ Compensation Rules for Permanent Employees⚫ Compensation Rules for Fixed-term Employees⚫ Compensation Rules for Administrative Assistants
34.3.9 Compensation for Full-time Officers
34.3.9.1

Categories of Compensation. Compensation of full-time Officers (theCEO/President, the Vice CEO, and Full-time Auditor) comprises:⚫ Base Salary;7
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⚫ Special Adjustment Allowance;⚫ Commuting Allowance; and⚫ Housing Allowance.
34.3.9.2 Base Salary. Amount of Base Salary is determined by the Board ofGovernors within the maximum amount specified in the following table:
Officers
The maximum amount (yen)The CEO
30,000,000
The Vice-CEO
20,000,000
Auditor
15,000,000
34.3.9.3 Special Adjustment Allowance. A Special Adjustment Allowance may be
paid to full-time Officers when it is deemed necessary in consideration of theirexperience regarding internationally excellent scientific research and education,difficulty of duties, past achievements, and anticipated contributions.
The amount of Special Adjustment Allowance is determined by the Board ofGovernors (BOG) after consultation with the Cabinet Office.
34.3.9.4 Commuting Allowance. Rules on Commuting Allowance for employees(34.3.5.1) are applied to Full-time Officers.
34.3.9.5 Housing Allowance. Rules on Housing Allowance for Fixed-Term
employees (Job type: Faculty) (34.3.5.2) are applied to Full-time Officers.
34.3.9.6 Pay Dates. Compensation is paid monthly (for the first day to the last dayof the month) on the 17th of the every month (on the closest preceding business day
if the 17th falls upon a holiday.)
When an Officer is newly appointed, or resigns or is dismissed, during the course of
the month, his/her monthly compensation, Commuting Allowance and Housing
Allowance of that month is calculated on a pro-rated basis based on the number ofbusiness days. However, the entire amount of the monthly compensation is paid
when the Officer dies during the course of the month.
34.3.9.7 Pay Method. The compensation of Officers is paid, after deducting all
amounts that are to be deducted from the Officer’s compensation by law, directly incash or via bank transfer to the deposit or saving account designated by the Officer.
34.3.9.8 Monthly Compensation. Amount of monthly compensation is calculated
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by the following formula:[[Base Salary] + [Special Adjustment Allowance]/12 (or the number of months of
the appointment contract if that is less than 12)34.3.9.9 Fractions. In the calculation of compensation, fractions of less than 0.5
yen will be rounded down and fractions of between 0.5 yen or more and less than 1
yen will be counted as 1 yen.
34.3.10 Part-time Officers
The compensation of Part-time Officers is paid as determined separately by the
Board of Governors in accordance with their position, considering their working
arrangements.
34.4 Responsibilities
34.4.1 Salary Review Committee: SRC
The Salary Review Committee: SRC is responsible for administering thecompensation policies fairly and accurately.
34.4.2 Vice President for Human Resource (VPHR)
Vice President for Human Resource (VPHR) shall establish the SRC and appoint thecommittee members from OIST Graduate University employees in the relevant
positions. Vice President for Human Resource (VPHR) is responsible for reviewing
the salary structure annually and proposing necessary changes to the SRC. VPHR isalso responsible for ensuring that individual salary levels properly reflect various
elements and maintain internal equity.
34.4.3 Human Resource Division
Human Resource Division will serve as the secretariat of the SRC.
34.4.4 HR Management Section
The HR Management Section is procedure to process administering thecompensation.
34.4.5 Employees
All University employees and officers must promptly notify the HR Management
Section of any changes that could affect their allowances, such as commuting distanceor location of residence.

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34.5 Procedures
34.6 Forms
34.7 Contacts
34.7.1 Policy Owner:
Vice President for Human Resource (VPHR)
34.7.2 Other Contacts:
Human Resource Division
34.8 Definitions

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