Hong Kong ยท Mandatory Insurance

Employees' Compensation Insurance (ๅ‹žๅทฅไฟ้šช)

Under the Employees' Compensation Ordinance (Cap. 282), every Hong Kong employer is legally required to maintain EC insurance for all employees. Failure to comply is a criminal offence carrying a maximum fine of HK$100,000 and up to 2 years' imprisonment. Echo Olesen Global assists with policy application, renewal, and claims management.

Legally MandatoryAll Employee Types CoveredCompetitive PremiumsFast Policy IssuanceClaims Support
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Legal Requirement โ€” Non-Compliance is a Criminal Offence

Under the Employees' Compensation Ordinance (Cap. 282), every employer in Hong Kong who employs one or more employees under a contract of service or apprenticeship must maintain EC insurance. Penalties for non-compliance include:

Maximum fine of HK$100,000Imprisonment for up to 2 yearsPersonal liability for all compensation claimsInability to legally employ staff

Who Needs EC Insurance?

EC insurance is mandatory for all Hong Kong employers, regardless of company size, industry, or employee type.

All Hong Kong Employers

Every employer in Hong Kong who employs one or more employees under a contract of service or apprenticeship is legally required to maintain EC insurance.

Part-Time & Casual Workers

EC insurance covers all employees regardless of employment status โ€” full-time, part-time, casual, seasonal, or temporary workers are all covered.

Domestic Helpers

Employers of foreign domestic helpers are required to maintain EC insurance as a condition of the standard employment contract.

Construction & High-Risk Industries

Employers in construction, manufacturing, and other high-risk industries face higher EC insurance premiums but are subject to the same mandatory coverage requirements.

What Does EC Insurance Cover?

EC insurance provides comprehensive coverage for work-related injuries, occupational diseases, and employer liability under Hong Kong law.

Work Injuries

Medical expenses, hospitalisation, and rehabilitation costs arising from work-related injuries sustained during employment.

Occupational Diseases

Compensation for employees who develop occupational diseases listed in Schedule 2 of the Employees' Compensation Ordinance.

Permanent Disability

Lump sum compensation for permanent total or partial disability resulting from a work-related accident or occupational disease.

Death Benefits

Compensation payable to the dependants of an employee who dies as a result of a work-related accident or occupational disease.

Temporary Incapacity

Periodic payments to employees who are temporarily incapacitated and unable to work due to a work-related injury.

Legal Liability

Coverage for the employer's legal liability under the Employees' Compensation Ordinance (Cap. 282) and at common law.

How We Help You Get Covered

01

Consultation & Assessment

We assess your workforce โ€” number of employees, occupations, salary levels, and business nature โ€” to determine your EC insurance requirements.

02

Competitive Quotes

We obtain competitive quotes from multiple authorised insurers in Hong Kong, ensuring you get the best coverage at the most competitive premium.

03

Policy Application

We handle the complete policy application process, preparing all required documentation and liaising with the insurer on your behalf.

04

Ongoing Support

We provide ongoing policy management, renewal reminders, and claims support throughout the policy period.

EC Insurance FAQs

Common questions about Employees' Compensation Insurance in Hong Kong

Is Employees' Compensation Insurance mandatory in Hong Kong?
Yes. Under the Employees' Compensation Ordinance (Cap. 282), every employer in Hong Kong who employs one or more employees under a contract of service or apprenticeship is legally required to maintain EC insurance. This applies regardless of company size, industry, or employee type.
What is the penalty for not having EC insurance in Hong Kong?
Employers who fail to maintain EC insurance face a maximum fine of HK$100,000 and imprisonment for up to 2 years, plus personal liability for all compensation claims. The Labour Department actively enforces compliance.
Does EC insurance cover part-time and casual workers?
Yes. EC insurance covers all employees regardless of employment status โ€” full-time, part-time, casual, seasonal, or temporary workers are all covered. The key criterion is whether the person is employed under a contract of service.
How much does EC insurance cost in Hong Kong?
EC insurance premiums vary based on the number of employees, their occupations, salary levels, and the nature of the business. High-risk industries (construction, manufacturing) attract higher premiums. Echo Olesen Global can obtain competitive quotes from multiple insurers.
What is the minimum level of EC insurance coverage required?
The Employees' Compensation Ordinance does not specify a minimum sum insured. However, the policy must cover the employer's full liability under the Ordinance and at common law. Echo Olesen Global can advise on appropriate coverage levels for your business.
Can I get EC insurance for a newly incorporated Hong Kong company?
Yes. EC insurance can be obtained as soon as your company is incorporated and before you hire your first employee. Echo Olesen Global can arrange EC insurance as part of your post-incorporation setup.

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