Guide to Handling Work Injuries - (Part 3): How to Calculate Compensation Amounts
There are over 370,000 foreign domestic helpers in Hong Kong who help families with daily chores and care duties. But what happens if your helper gets injured at work? As an employer, you are legally responsible under the Employees’ Compensation Ordinance (Cap. 282) to provide compensation.
In this Part 3 of our Work Injury Guide, we’ll explain how compensation is calculated, including for death, permanent or temporary disability, and medical costs. We’ll also share real examples to help you understand your responsibilities.
How is the Compensation Amount Calculated?
The compensation amount depends on three main factors:
1. The helper’s monthly income
2. Their age
3. The degree of work capacity loss
(a) Compensation for Death
If your helper passes away due to a work-related accident or occupational disease, you must pay compensation to their surviving family.
The formula is:
Monthly income × number of months or Minimum compensation amount, whichever is higher.
Number of months based on age:
Age below 40: 84 months
Age 40 to 56: 60 months
Age 56 or above: 36 months
Minimum compensation amount:
From 17 April 2025 onwards: HK$514,510
Between 13 April 2023 – 16 April 2025: HK$486,300
Additional funeral and medical expenses: Up to HK$98,950
Example:
A 35-year-old helper earning HK$5,000/month sadly dies due to a work accident:
84 × 5,000 = HK$420,000
It is lower than minimum, so employer must pay: HK$514,510
(b) Permanent Loss of Work Ability
If your helper becomes permanently and totally disabled, the formula is:
Number of months based on age:
l Age below 40: 96 months
l Age 40 to 56: 72 months
l Age 56 or above: 48 months
Minimum compensation amount:
From 17 April 2025: HK$584,220
Between 13 April 2023 – 16 April 2025: HK$552,190
Example:
A 40-year-old helper earning HK$5,000/month becomes totally disabled:
72 × 5,000 = HK$360,000
Employer must pay minimum: HK$584,220
Partial Disability:
If your helper loses part of their ability to work:
Compensation = Total disability amount × % of income lost
Example:
Loss of 40% income ability:
584,220 × 40% = HK$233,688
(c) Temporary Work Disability (Sick Leave Pay)
Under the Ordinance, the employer must pay periodical payments during the helper’s sick leave.
Formula:
(Pre-accident monthly income − current monthly income during recovery) × 80%
l Can be paid for up to 24 months
l If more time is needed, a court order is required (max 12 more months)
l Must be paid on regular payday, or employer may face a fine of HK$100,000
(d) Medical Expenses
Employers must cover the helper’s work injury treatment costs, including consultation, medication, and physiotherapy.
Daily maximum limits:
l Inpatient (hospital): HK$300/day
l Outpatient (clinic): HK$300/day
l Same-day inpatient + outpatient: HK$370/day
Payments must be made within 21 days after receiving a written request and receipts.
What If There’s a Dispute?
If there’s disagreement about the injury or compensation amount, you may:
l Settle directly with the helper
l Reach a mutual agreement under the law
l Apply to the Labour Department for an assessment (Form 5, 7, 8)
l Go to court if necessary
Must-Have: Domestic Helper Insurance
All employers in Hong Kong must buy employee compensation insurance, which is usually included in a domestic helper insurance plan. This protects you from legal and financial risks.
Summary
Work injury compensation is a serious responsibility. Understanding how the amount is calculated and buying the right insurance can protect both you and your helper. For more details, visit the Labour Department website or call 2717 1771.
Related Website: Labour Department - Employees' Compensation Ordinance, Chapter 282
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The information provided in this article is for general reference only and should not be considered as any form of advice. Our company assumes no responsibility for its use
