XN000022-1996-11-06 — Page 34

Legislative Items

17

-

Estimated cost impact due to

labour legislation enacted during 1992–1995

Annex

Estimated cost

impact as a%

of total wage bill

(A) Under the Employment Ordinance

0.06%

(i) Improving the provisions of severance payment (SP) and

long service payment (LSP)

0.03%

(effective on 20.1.95)

(ii) Revising the monthly wage limit for the purpose of

calculating of SP and LSP from $15,000 to $22,500 (effective on 23.6.95)

0.01%

(iii) Lowering the qualifying years of service from 10 years

to 5 years for eligibility for LSP on retirement on

0.01%

ground of old age

(effective on 14.7.95)

(iv) Increasing the rate of maternity leave pay from two-

thirds to four-fifths of wages of employees

0.01%

(effective on 14.7.95)

(B)

Under the Employees Compensation Ordinance (ECO)

0.17%

Revising the prescribed percentage of loss of earning capacity of specified injuries for the purpose of

calculating compensation

(effective on 1.1.94)

(i)

Revising the levels of compensation

(effective on 1.1.94)

(iii) Setting a limit on the coverage of compulsory

employees compensation insurance

(effective on 1.8.95)