All EC insurers and employers are advised to take note that the
Legislative Council passed a resolution on 17 July 2012 to increase
the amounts of eight compensation items payable under the
Employees' Compensation Ordinance Cap. 282 (ECO). This
amendment came as a result of the substantive wage growth brought
by the implementation of the statutory minimum wage since May 2011,
and also the rising trend in price level and funeral expenses in
the recent time.
Increasing the ceiling of monthly earnings from HK$21,500 to
HK$23,580. This figure is the basis for calculating the maximum
amounts of compensation for permanent total incapacity (Section 9)
and for death under the ECO.
Increasing the minimum levels of compensation for death from
HK$310,000 to HK$340,040.
Increasing the minimum levels of compensation for permanent
total incapacity from HK$352,000 to HK$386,110.
Increasing the maximum amount of compensation for employees
requiring attention by another person from HK$422,000 to
Increasing the maximum amount of funeral expenses from
HK$35,000 to HK$70,000.
Increasing the cost for supplying and fitting of a prosthesis
or surgical appliance from HK$33,000 to HK$33,460.
Increasing cost of repair and renewal of a prosthesis or
surgical appliance from HK$100,000 to HK$101,390.
As for the surcharge on late payment of compensation,
increasing the minimum amount of surcharge imposed upon expiry of
the payment period from HK$500 to HK$550 and the minimum of a
further surcharge imposed three months after the expiry of the
payment period from HK$1,000 to HK$1,100.
To allow time for the employers and the insurance industry to
prepare for the implementation arrangements, the revised levels of
compensation shall take effect from 21 July 2012.
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issues and developments of interest. The foregoing is not a
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Asia's legal and human resources advisors are often required to function across multiple jurisdictions.
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