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PRC Labour Law - Bitesize: What other entitlements must be provided to an employee who suffers a work-related injury?

8 July 2010
Mayer Brown JSM Newsletter

What other entitlements must be provided to an employee who suffers a work-related injury?

Other than the salary/disability allowance, an employee injured for work-related reason generally is entitled to the following entitlements:

  • Reimbursement of medical treatment costs in accordance with the catalogue/schedule issued by the PRC government. Such costs will be borne by the Foundation1 if the company has paid work-related injury insurance contributions for the employee. Otherwise, the reimbursement shall be paid by the company
  • Food allowance, which shall be paid by the company at the rate of 70% of the standard provided in its business trip policy
  • Reimbursement of accommodation fees for medical treatment outside the city where the employee works, which shall be paid by the company after the employee obtains relevant approval from the local labour bureau
  • Reimbursement of costs of technical aids, e.g. artificial limb, which shall be borne by the Foundation in accordance with the relevant catalogue/schedule
  • Special care fees for those who cannot take care of himself/herself due to the injury, which is paid at the rate of 30-50% of the Local Average Monthly Salary to the employee on a monthly basis, and shall be borne by the Foundation
  • One-off disability subsidy subject to the degree of his/her disability (see details in the Table 1 below)
  • One-off medical subsidy and employment subsidy, which are payable to an employee who has been certified to be disabled at Degrees 5-10 upon termination of his/her employment with the company (see details in the Table 2 below)
  • If the employee dies for work-related reason, his/her direct relative is entitled to: a) funeral subsidies of 6-month Local Average Monthly Salary; b) a monthly consolation money, which is generally 30-50% of the employee’s monthly salary, and will be paid to the relatives who were mainly cared for by the employee before his/her death; and c) a one-off subsidy in an amount ranging from 48 to 60 months’ Local Average Monthly Salary. These payments will be borne by the Foundation if the company has paid work-related injury insurance contributions for the employee

Table 1: One-off Disability Subsidy

Degree of Disability
Amount of One-off Disability Subsidy
Borne by
Degree 1
24 × CB
Foundation (If the company has not paid work-related injury insurance contributions for the employee, such amount shall be borne by the company.)
Degree 2
22 × CB
Degree 3
20 × CB
Degree 4
18 × CB
Degree 5
16 × CB
Degree 6
14 × CB
Degree 7
12 × CB
Degree 8
10 × CB
Degree 9
8 × CB
Degree 10
6 × CB

Table 2: One-off Medical & Employment Subsidy Upon Termination of Employment

Degree of Disability
Amount of One-off Medical & Employment Subsidy
Borne by
Degree 5
30 × Local Average Monthly Salary
Company
Degree 6
25 × Local Average Monthly Salary
Degree 7
20 × Local Average Monthly Salary
Degree 8
15 × Local Average Monthly Salary
Degree 9
10 × Local Average Monthly Salary
Degree 10
5 × Local Average Monthly Salary

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Footnote:

1. Foundation refers to the Local Work-related Injury Insurance Foundation

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