Summary

All EC insurers and employers are advised to take note that the Legislative Council passed a resolution on 30 June 2010 to increase the amounts of five compensation items payable under the Employees' Compensation Ordinance Cap. 282 (ECO) by around 2.34%.

The amendments

These include:

  • Increasing the ceiling of monthly earnings from HK$21,000 to HK$21,500. 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$303,000 to HK$310,000.
  • Increasing the minimum levels of compensation for permanent total incapacity from HK$344,000 to HK$352,000.
  • Increasing the maximum amount of compensation for employees requiring attention by another person from HK$412,000 to HK$422,000.
  • As for the surcharge on late payment of compensation, increasing the minimum amount of surcharge imposed upon expiry of the payment period from HK$490 to HK$500 and the minimum of a further surcharge imposed three months after the expiry of the payment period from HK$970 to HK$1,000.

To allow time for employers and the insurance industry to prepare for the implementation arrangements, the revised levels of compensation shall take effect from 1 August 2010. At this stage it is not clear whether the amendments will also apply to accidents which happen before 1 August 2010.

For inquiries related to this Legal Update, please contact:

Derek Lee (derek.lee@mayerbrown.com)

Learn more about our Hong Kong office, Insurance & Reinsurance and Litigation & Dispute Resolution practices.

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