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According to the Employees' Compensation Ordinance, the amount of employees' compensation payable is calculated with reference to the employee's "monthly earnings". "Monthly earnings" is to be taken as the earnings for the month immediately preceding the date of accident, or the average monthly earnings for the previous twelve months; or any lesser period if the employee has not been so long employed, whichever calculation is more favourable to the employee.

If an employee dies as a result of an accident arising out of and in the course of employment or a prescribed occupational disease, the employer shall be liable to pay compensation for death to his surviving members of the family. The amount of compensation payable is calculated with reference to the age and monthly earnings of the deceased employee. For deceased employee aged under 40, the amount of compensation is 84 months' earnings. For aged 40 to under 56, the amount is 60 months' earnings. For aged 56 or above, the amount is 36 months' earnings. In calculating the amount of compensation for deaths, the monthly earnings are subject to a maximum of $36,550 while the minimum amount of compensation is $486,300. For deaths caused by work accidents happened or prescribed occupational diseases contracted on any date between 15th April 2021 and 12th April 2023, the maximum amount of monthly earnings are $35,600 while the minimum amount of compensation is $473,610.

The compensation shall be apportioned among the eligible members of the family of the deceased employee in accordance with the apportionment schedule stipulated in the Ordinance. The Commissioner for Labour or the Court may determine the amount of the compensation for death. The employer is also liable to reimburse funeral and/or medical attendance expenses, up to a maximum of $94,690 to the person who has paid such expenses. For deaths caused by work accidents happened or prescribed occupational diseases contracted on any date between 15th April 2021 and 12th April 2023, the maximum amount of funeral and/or medical attendance expenses is $92,670.

As regards non-fatal cases, according to the Employees' Compensation Ordinance, an employer is obliged to pay his injured employee periodical payments at the rate of four-fifths of the difference between the employee's monthly earnings at the time of the accident and his monthly earnings during the period of temporary incapacity.

Compensation payable for permanent total incapacity resulting from a work injury is calculated with reference to the age and monthly earnings of the injured employee. For injured employee aged under 40, the amount of compensation is 96 months' earnings. For aged 40 to under 56, the amount of is 72 months' earnings. For aged 56 or above, the amount is 48 months' earnings. In calculating the amount of compensation for permanent total incapacity, the monthly earnings are subject to a maximum of $36,550 while the minimum amount of compensation is $552,190. For permanent total incapacity caused by work accidents happened or prescribed occupational diseases contracted on any date between 15th April 2021 and 12th April 2023, the maximum amount of monthly earnings are $35,600 while the minimum amount of compensation is $537,780.

Where permanent partial incapacity results from the injury, the amount of compensation is a percentage of the compensation payable for permanent total incapacity as is proportionate to the loss of earning capacity permanently caused by the injury.

Besides, an employer is liable to pay for the medical expenses incurred by the employee. For employee who is given medical treatment as an in-patient or other than as an in-patient in a hospital, the daily maximum of medical expenses payable are $300. For employee who is given medical treatment both as an in-patient in a hospital and other than as an in-patient in a hospital, the daily maximum of medical expenses payable are $370.

For further enquiries on the Ordinance, please call enquiry hotline of Labour Department at 2717 1771. The hotline is handled by "1823 Call Centre".

Date of amendment: 17th November 2023