- Levels of Compensation Under the ECO Slightly Increased
- July 21, 2010 | Author: Derek M. T. Lee
- Law Firm: Mayer Brown JSM - Hong Kong Office
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%.
- 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.