Yes, it is mandatory for all employees in Hong Kong, regardless of whether they are full-time, part-time, or temporary workers.
Employees' Compensation Insurance
Employee's Compensation Insurance (ECI) in Hong Kong is a crucial component of the city's labor and insurance landscape. It provides protection for both employers and employees in the event of work-related injuries or illnesses. Here are some key insights about ECI in Hong Kong:
The Employees' Compensation Ordinance of Hong Kong (Chapter 282 of the Laws of Hong Kong) applies to all full time or part-time employees who are employed under contracts of service or apprenticeship.
The law applies to Hong Kong based employers who have employees employed in and outside Hong Kong.
All Hong Kong based employers are required to take out insurance policies to cover their liabilities both under:
- the EC Ordinance and
- at common law
for injuries or illnesses suffered by employees on account of their work.
Any employer who, without reasonable excuse, fails to pay the compensation or a surcharge is liable to prosecution and, upon conviction, to a maximum fine of $100,000.
For Domestic helpers it is important to check if your plan covers 'working overseas'. If your helper(s) accompany you on a trip. In Hong Kong, very few insurers actually give this protection, unlike business insurance policies.
Irrespective of whether an accident or occupational disease will result in any liability to pay compensation, Section 15 of the Ordinance requires employers to notify the Commissioner of Labour as follows:
| Affliction | Resulting in | Notice Period | Form |
| Work Injury | Incapacity for less than 3 days | Within 14 days | Form 2B |
| Incapacity for greater than 3 days | Form 2 | ||
| Death | Within 7 days | ||
| Occupational Disease | Incapacity | Within 14 days | Form 2A |
| Death | Within 7 days |
Any employer who fails without reasonable excuse to meet the deadlines as above, is liable to a fine of up to HKD50,000.
Useful Documents
Revised Levels of Compensation under the 6* Schedule of Employees' Compensation Ordinance ("ECO") Cap 282 with effect from 13 April 2023
| Item under ECO | Existing Level (HKD) | Revised Level with effect from 13 April 2023 (HKD) |
| Ceiling of monthly earnings (for calculating compensation for death and permanent total incapacity) |
35,600
|
36,550
|
| Minimum amount of compensation for death |
473,610
|
486,300
|
| Minimum amount of compensation for permanent total incapacity |
537,780
|
552,190
|
| Compensation for employees requiring attention by another person |
644,710
|
661,990
|
|
Minimum amount of surcharge on late payment of compensation |
|
780 1,580 |
|
Maximum amount of the cost of supplying and fitting a prosthesis or surgical appliance |
44,300 |
45,270 |
|
Maximum amount of the cost of the repair and renewal of a prosthesis or surgical appliance |
134,220 |
137,150
|
|
Minimum monthly earnings (for calculating periodical payments during work injury sick leave) |
5,310 |
5,500
|
Legal Requirement
Employee's Compensation Insurance is mandatory for all employers in Hong Kong under the Employees' Compensation Ordinance. Employers are required to provide insurance coverage for their employees to compensate for injuries or diseases arising from employment.
Coverage
ECI covers work-related injuries and occupational diseases suffered by employees during the course of their employment. It provides compensation for medical expenses, rehabilitation, and loss of earnings resulting from such injuries or illnesses.
Benefits for Employees
Under ECI, employees are entitled to various benefits, including medical expenses, hospitalization, and compensation for loss of earnings, temporary or permanent disablement, and death benefits to beneficiaries in case of a fatal accident.
Employees’ Compansation Insurance FAQs
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ECI premiums are typically calculated as a percentage of the employee's earnings. The exact rate may vary based on factors such as the type of industry and the level of risk associated with the business.
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Non-compliance with ECI requirements can result in severe penalties, including fines and imprisonment for employers. The penalties can be substantial.
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Some specific categories of workers, such as certain family members working in family businesses, may be exempt from ECI requirements. However, it's essential to check with the Labour Department for the latest information on exemptions.
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There is no requirement of an insurer to have to accept your application..
You could be a small business working from home, or a staff aged over 65 or perhaps a company involved in evacuating injured people by helicopter, or a company involved in blasting rock at a quarry, for example.. In such instances the insurer is quite within its rights to decline your application.
There is however, recourse via the Employees' Compensation Insurance Residual Schemes Bureau Ltd. (ECIRSB), which is accountable to help in finding a willing insurer, but only after we can prove your application has been declined by 3 companies.
In our experience, in helping arrange cover this way, the elapsed time it taken to have cover in place, has been around 3 months on average!
The ECIRSB will ask you to provide proof of your Claim history for the latest past five years issued by insurance companies. In the bsence of these, you / your staff, will be asked to make statutory declarations.
You will also be asked to provide your company's latest
- Audit report
- Latest income statement
- Latest profit tax return
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ECI provides benefits, including compensation for medical expenses, loss of earnings during treatment, temporary or permanent disablement, and death benefits to beneficiaries in case of a fatal accident.
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There is no insurer of which we are aware, that is comfortable to provide employees' compensation cover for any employee working from home.
The reason is that the insurer can not be sure if you were actually working the time you were injured, or you were playing ball with your dog.
For larger companies, COVID 19 has meant more insurers are now willing to endorse their policies to allow working from home under certain conditions. To have this cover, make sure that your policy is suitably endorsed.
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If any of your employees is/are injured at work resulting in fatal or serious injuries, call us immediately on 2530 2530. IF it happens after office hours, please call:
Romi Gill +852 9094 8602,
Tess Suliwan +852 98011009 or
Robin Brown +8520 5917 2530
We may need to send an adjuster to investigate the accident right away.
Where possible, take photographs of the accident scene immediately after the accident and submit them to us.
Whether the injury is serious or not, obtain either:
- The Form 2 or
- Form 2B from this site or any Labour Department Offices.
Complete either of the Forms in duplicate and send the original to the Labour Department with a copy to us. (Claims@navigator-insurance.com)
There is no need to fill out any claim form.
Claims for sick leave with less than 7 days and not Involving Permanent Disability, you may settle the Compensation with the Employee, in Accordance to the Formula set by the Labour Department.
Upon settlement, arrange the employee to sign against the agreed settlement, as stated on the Form 2 or Form 2B.
For the insurers claim settlement process, submit to us the following:
- A copy of the Form 2 or Form 2B which bears the original signature of the employee, confirming his acceptance of the settlement amount.
- All original sick leave certificates
- All original medical receipts
Exceeding Claims for 7 days with sick leave and not Involving Permanent Disability, US to submit the following:
- Form 5 - Certificate of Compensation Assessment, if any
- All original sick leave certificates
- All original medical receipts
For Permanent Disability Claims Involving, submit the Original of the Following Documents to us immediately:
- Form 7 - Certificate of Assessment
- Form 5 - Certificate of Compensation Assessment
- All original sick leave certificates
- All original medical expenses receipts
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In most cases, employees can choose their own doctors for treatment, but it's essential to inform your employer and insurance provider about the choice of doctor.
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There is a time limit for filing a claim as indicated above in this page. It's crucial to report the accident or injury as soon as possible and file a claim promptly to ensure you receive the benefits to which you are entitled.
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Submitting a Claim
If you wish to submit a claim, please submit the form and we will reach out to you shortly. In case of emergency, please call our emergency hotline.
Emergency Hotline: +852 2530 2530
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