Frequently Asked Questions about
The Employees' Compensation Ordinance, Cap. 282

Calculation of Earnings
 
Q1. What should be taken as the monthly earnings of an injured employee working in individual industry (such as the construction industry) which features an irregular pattern of working days?
A1.

The “monthly earnings*” is to be taken as the earnings for the month immediately preceding the date of the accident, or the average monthly earnings for the previous 12 months of employment (or any lesser period if the employee has not been so long employed), whichever calculation is more favourable to the employee.

If the employee in question is daily rated, and that he actually worked for 19 days in the month immediately preceding the date of the accident, the employee’s earnings for the one month immediately preceding the date of the accident will be:

Earnings of the employee for the month
immediately preceding the date of the accident

=

daily wages x 19 days

Suppose that the employee had only worked for the employer for 4 months before the date of the accident, the average monthly earnings of the employee in the less-than-12-month period is as follows:

Average monthly earnings of the employee
in the less-than-12-month employment

=

(Actual total earnings of the employee in the past 4 months)/4

 
(Note) *Please refer to Chapter 6 of “A Concise Guide to the Employees’ Compensation Ordinance” for the definition of earnings.