Employees Compensation Ordinance Revises Compensation Levels (in 2019)
All Hong Kong employers have been placed with an increased liability since 26 April 2019.
A Resolution was passed to revise the levels of compensation. The nine compensation items that have been affected are under the 6th Schedule of Employees’ Compensation Ordinance (i.e. the ‘ECO’), Chapter 282 of the Laws of Hong Kong (see enclosed Appendix).
The nine items under Employees Compensation Ordinance (ECO):
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Ceiling of monthly earnings (for the calculation of compensation for death and permanent total incapacity) has increased to HK$ 30,530 (from 28,360).
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Minimum amount of compensation for death has increased to HK$ 440,200 (from 408,960).
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Minimum amount of compensation for permanent total incapacity has increased to HK$ 499,840 (from 464,360).
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Compensation for employees requiring attention by another person has increased to HK$ 599,230 (from 556,700).
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Minimum amount of surcharge on late payment of compensation has increased to HK$ 710 (for initial surcharge) and HK$ 1,430 (for further surcharge), from HK$ 660 (for initial surcharge) and HK$ 1,330 (for further surcharge).
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Maximum amount of funeral expenses has increased to HK$ 87,330 (from 83,700).
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Maximum amount of the cost of supplying and fitting a prosthesis or surgical appliance has increased to HK$ 41,750 (from 40,010).
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Maximum amount of the cost of the repair and renewal of a prosthesis or surgical appliance has increased to HK$ 126,490 (from 121,230).
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Minimum monthly earnings (for calculating periodical payments during work injury sick leave) has increased to HK$ 4,500 (from 4,090).
Under Chapter 282 of the Employees' Compensation Ordinance, it establishes a no-fault, non-contributory employee compensation system for work injuries.
The major provisions of the Ordinance are applied under the following circumstances:
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An employer is liable to pay compensation in respect of injuries sustained by his employees as a result of an accident arising out of and in the course of employment; or in respect of occupational diseases specified in the Ordinance suffered by the employees.
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The Ordinance in general applies to employees who are employed under a contract of service or apprenticeship. Employees who are injured while working outside Hong Kong are also covered if they are employed in Hong Kong by local employers.
A two-tier system - Employees' Compensation (Ordinary Assessment) Board and Employees' Compensation (Special Assessment) Board - is provided for to assess the necessary period of absence from duty and the percentage of loss of earning capacity permanently caused to the employee as a result of the work injury.