Mayer Brown JSM Legal Update

All EC insurers and employers are advised to take note that a resolution has been passed by the Legislative Council on 4 February 2015 to increase the statutory compensation levels under various employees compensation ordinances, including the ECO, to bring them in line with wage and price increases and other relevant factors over the past two years. The amendments will take effect for work accidents happening on or after 5 March 2015.

The amendments include:

  • Increasing the ceiling of monthly earnings from HK$23,580 to HK$26,070. This figure is the basis for calculating the maximum amounts of compensation for permanent total incapacity (Section 9) and for death under the ECO.
  • Increase the minimum of monthly earnings from HK$3,490 to HK$3,690. This figure affects a claimant’s entitlement under section 10 of the ECO (i.e., periodical payment).
  • Increasing the minimum levels of compensation for death from HK$340,040 to HK$375,950.
  • Increasing the minimum levels of compensation for permanent total incapacity from HK$386,110 to HK$426,880.
  • Increasing the maximum amount of compensation for employees requiring attention by another person from HK$462,890 to HK$511,770.
  • Increasing the maximum amount of funeral expenses from HK$70,000 to HK$76,220.
  • Increasing the cost for supplying and fitting of a prosthesis or surgical appliance from HK$33,460 to HK$36,430.
  • Increasing cost of repair and renewal of a prosthesis or surgical appliance from HK$101,390 to HK$110,390.
  • As for the surcharge on late payment of compensation, increasing the minimum amount of surcharge imposed upon expiry of the payment period from HK$550 to HK$610 and the minimum of a further surcharge imposed three months after the expiry of the payment period from HK$1,100 to HK$1,220.