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.

Orignally published February 4th, 2015.

Visit us at www.mayerbrown.com

Mayer Brown is a global legal services organization comprising legal practices that are separate entities (the Mayer Brown Practices). The Mayer Brown Practices are: Mayer Brown LLP, a limited liability partnership established in the United States; Mayer Brown International LLP, a limited liability partnership incorporated in England and Wales; Mayer Brown JSM, a Hong Kong partnership, and its associated entities in Asia; and Tauil & Chequer Advogados, a Brazilian law partnership with which Mayer Brown is associated. "Mayer Brown" and the Mayer Brown logo are the trademarks of the Mayer Brown Practices in their respective jurisdictions.

© Copyright 2014. The Mayer Brown Practices. All rights reserved.

This article provides information and comments on legal issues and developments of interest. The foregoing is not a comprehensive treatment of the subject matter covered and is not intended to provide legal advice. Readers should seek specific legal advice before taking any action with respect to the matters discussed herein. Please also read the JSM legal publications Disclaimer.