Answer: The purpose of labor capacity appraisal after an employee suffers work-related injury or occupational disease is to determine the disable class or labor capacity of the employee, in order to decide how to deal with the employment relationship and how the Work Injury Insurance Fund and the employer compensate and support the employee.
After the completion of the labor capacity appraisal, there are the following situations:
The first situation is that the employee does not have a disability of any class. In this case, the employee shall continue to take the paid work injury leave, or if the paid work injury leave has expired, he may take medical care leave for general illness if there is a medical certificate issued by a medical institution, or return to work.
The second situation is that the employee has a disability of class 1 to 4. The two parties shall retain the employment relationship, the employee shall stands down from the role, and the Work Injury Insurance Fund shall pay the employee monthly disability subsidy and one-off disability allowance according to the disability level. The employer must not terminate the employee. However, if the employment is terminated based on the employee¡¯s request, 1 The civil ruling on the review and judicial supervision of the labor dispute between the Dongning County Xingshun Coal Mine and Yang Changcai, the Civil Ruling (2019) Hei Min Shen 4065 by the Heilongjiang Higher People’s Court. In this case, the court held that the provision of the “Regulations on Work Injury Insurance” regarding the retention of employment relationships for employees disabled at level from class one to four after a work injury only restricts the employer’s right to termination but do not preclude the employee’s right to request termination. $the Work Injury Insurance Fund shall pay a one-off work injury medical allowance, and the employer shall pay a one-off employment subsidy for disability;1Article 38 of the Social Insurance Law of 2018.$consequently afterwards the employee can no longer be entitled to the treatments of work-related injury, including disability subsidy and assistive device costs.2In the case of Guo Jinguang v. Fujian Quanzhou Donghai Construction Co., Ltd., Fujian Provincial People¡¯s High Court Civil Ruling (2017) Min Min Shen No.252.
The third situation is that the employee has a disability of class 5 to 6. The Work Injury Insurance Fund pays a one-off disability allowance to the employee. The two parties shall retain the employment relationship, and the employer must arrange an appropriate role for the employee; if it is not possible, the employer is responsible for paying the employee’s monthly disability subsidy. The employer must not terminate the employee. The employee, however, may negotiate with the employer to terminate the contract, in which case the Work Injury Insurance Fund pays a one-off work injury medical allowance, and the employer pays a one-off employment subsidy for disability and economic compensation. However, the employee shall no longer be eligible for further work injury entitlements.
The fourth situation is that the employee has a disability of class 7 to 10. The Work Injury Insurance Fund pays a one-off disability allowance. The two parties shall retain the employment relationship and the employer shall arrange an appropriate role for the employee. If the employer terminate or dissolve the employment relationship due to not being able to arrange an appropriate role or other reasons such as mutual negotiation, the Work Injury Insurance Fund shall pay a one-off work injury medical allowance, and the employer shall pay a one-off employment subsidy for disability and economic compensation. However, the employee shall no longer be eligible for further work injury entitlements.
The fifth situation is death of the employee due to work injuries or occupational diseases. The Work Injury Insurance Fund shall pay the family members a funeral allowance, a one-off work death allowance, and a family support pension.
The above allowance and compensation items are the rights that disabled employees or family members of a deceased employee are entitled to according to the law. If an employer illegally terminates the employment relationship of an disabled employee in order to evade the obligations, rather than complying with the aforementioned rules, the disabled employee shall still have the right to request to reinstate the employment relationship, or claim and receive the compensation for these items in one lump sum as well as the punitive damages for illegal dismissal.3Tianjin Benlaixian Network Technology Co., Ltd., Li Feng Labor Dispute Retrial Review and Trial Supervision Civil Ruling Tianjin High Court Civil Ruling (2021) Jinmin Shen No.177. The court held that the Regulations on Work Injury Insurance stipulated that even when an injured worker voluntarily proposes to terminate the employment contract and the term of the employment contract expires, the employer is still obligated to pay one-off employment subsidy for disability, thus when the employer terminates the employment contract illegally, the employee should be more entitled to the aforementioned entitlements under work injury insurance.
In any of the above cases, the disabled employee has the right to obtain nursing fees and assistive device costs paid by the Work Injury Insurance Fund according to the result of the labor capacity appraisal. The nursing fees shall be paid at 50%, 40%, or 30% of the average monthly wages of the employees in the previous year in the overall planning area at the three different levels, namely, the total inability for self-care, the major inability for self-care, and the partial inability for self-care, according to the result of the labor capacity appraisal. The injured employee can also be entitled to the assistive device costs (including artificial limbs, orthoses, artificial eyes, dentures, and wheelchairs) according to confirmation from the Labor Capacity Appraisal Committee.
The standards for the various entitlements stipulated by each province and city may vary slightly. For example, for the monthly disability subsidy, some places determine it based on the individual’s wage, while others calculate it based on the local average wage for employees. There are also different regulations in different places regarding the payments of number of months wage on which the one-time work-injury medical allowance bases. Please refer to the Shenzhen Work Injury Entitlements Table for more details.
Disability |
Work-injury medical expenses |
Hospitalization Food Allowance |
Nursing fees during the paid work injury leave |
Wage during paid work injury leave |
Monthly Disability Subsidy and nursing fee for post-disability-identification |
One-off disability allowance |
One-off work injury medical allowance upon employment termination |
One-off employment subsidy for disability upon employment termination |
Assistive device cost |
No disability |
Covered by WIIF* |
Employers pay 70% of daily allowance for business trip and, if treatment in other region is necessary, expenses of travel, meal, and accommodation. |
If inability of self-care exists during PWIL*, employer arrange nursing or pay nursing fees at average wages of local workers in pervious year. |
Employers provide original wages and benefits for a maximum of 24 months. |
Not applicable |
Not applicable |
Not applicable |
Not applicable |
Covered by WIIF |
Class 1 to 4 |
The nursing fee is paid by WIIF at 50%,40%, or 30% of local workers’ average wage.The Disability subsidy is paid by WIIF at 90%,85%,80%, 75% of individual wage. |
Covered by WIIF at 27,25,23, or 21 times individual wage. |
Covered by WIIF at 15,14,13, or 12 times individual wage. |
Not applicable |
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Class 5 to 6 |
Disability subsidy: If job assignment is impossible, employers pay at 70% or 60% of individual wage. No nursing fees. |
Covered by WIIF at 18 or 16times individual wage. |
Covered by WIIF at 10 or 8 times individual wage. |
Employers pay 50 or 40 months of individual wages. |
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Class 7 to 10 |
Not applicable |
Covered by WIIF at 6,4,2, or 1 times individual wage. |
Covered by WIIF at 10 or 8 times individual wage. |
Employers pay 25,15,8,or 4 months of individual wages. |
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Work death |
1) Funeral allowance: RMB 13,730 applicable between 1 July 2023 and 30 June 2024 (6 times local average employees’ salary from the previous year);2) One-off work death allowance: RMB 985,660 (20 times national municipal residents’ average disposable income in previous year, RMB 49,283 in 2022);3) Family support pension shall be paid monthly at a certain portion, with the spouse, orphan, or parents as the widow or widower receiving 40%, and other family members receiving 30% of the individual wages of the deceased employee, for family members who have no labor capacity. The scope of family members to be supported and the conditions for support, please refer to the Regulations on the Scope of Deceased Employees’ Family Members for Pension Support. |
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Notes: *WIIF refers to Work Injury Insurance Fund, PWIL refers to paid work injury leave.1. Employers who do not purchase work injury insurance or purchase the insurance at a level lower than the statutory standard shall bear all payments that should have been covered by WIIF, including the discrepancies required to reach the standard entitlements.2. Individual wage refers to an employee’s 12-month average wages on which work injury insurance contribution was based before the work-related injury or occupational disease, subject to a cap of 300%, and a bottom of 60%, of the local average workers’ wage in overall planning area.3. The food allowance for business trip in Guangdong Province in 2015 is RMB 100 per day.4. Employers are responsible for employees who are unable to self-care during paid work injury leave. If an employer fails to provide care or allows the employee to arrange the care, the employer shall pay nursing fees under the following circumstances: the nursing fee is determined based on actual invoices if a nurse was hired during hospitalization. If a relative with a stable income provided the care, the fee is based on the relative’s income level (verified by a relevant income certificate, but normally not exceeding the local average employees’ salary from the previous year). If a relative with no stable income provided the care, the nursing fee is based on the market price. |
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In addition, if an employer does not purchase work injury insurance, all the expenses that the Work Injury Insurance Fund should pay should be borne by the employer. In addition, employees on casual hours and irregular and general work hours are also entitled to the work injury entitlements that other employees such as full-time employees are.4Civil Judgment of the Second Instance of Labor Dispute between Beijing SF Express Co., Ltd. and Sun Yunxing Civil Judgment of the Third Intermediate People’s Court of Beijing (2022) Jing 03 Min Zhong No. 13598. In the case the court held that casual employees should also enjoy work injury entitlements such as paid work injury leave according to their own wages. Sun Yi and Tianjin Lovol Heavy Industry Group Co., Ltd. Labor Dispute Appeal Case Tianjin First Intermediate People’s Court Civil Judgment (2013) YZMSZZ No.644. This case is about the work injury entitlements of employees under the general workhour system.
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- 1The civil ruling on the review and judicial supervision of the labor dispute between the Dongning County Xingshun Coal Mine and Yang Changcai, the Civil Ruling (2019) Hei Min Shen 4065 by the Heilongjiang Higher People’s Court. In this case, the court held that the provision of the “Regulations on Work Injury Insurance” regarding the retention of employment relationships for employees disabled at level from class one to four after a work injury only restricts the employer’s right to termination but do not preclude the employee’s right to request termination. $the Work Injury Insurance Fund shall pay a one-off work injury medical allowance, and the employer shall pay a one-off employment subsidy for disability;1Article 38 of the Social Insurance Law of 2018.$consequently afterwards the employee can no longer be entitled to the treatments of work-related injury, including disability subsidy and assistive device costs.2In the case of Guo Jinguang v. Fujian Quanzhou Donghai Construction Co., Ltd., Fujian Provincial People¡¯s High Court Civil Ruling (2017) Min Min Shen No.252.
- 2
- 3Tianjin Benlaixian Network Technology Co., Ltd., Li Feng Labor Dispute Retrial Review and Trial Supervision Civil Ruling Tianjin High Court Civil Ruling (2021) Jinmin Shen No.177. The court held that the Regulations on Work Injury Insurance stipulated that even when an injured worker voluntarily proposes to terminate the employment contract and the term of the employment contract expires, the employer is still obligated to pay one-off employment subsidy for disability, thus when the employer terminates the employment contract illegally, the employee should be more entitled to the aforementioned entitlements under work injury insurance.
- 4Civil Judgment of the Second Instance of Labor Dispute between Beijing SF Express Co., Ltd. and Sun Yunxing Civil Judgment of the Third Intermediate People’s Court of Beijing (2022) Jing 03 Min Zhong No. 13598. In the case the court held that casual employees should also enjoy work injury entitlements such as paid work injury leave according to their own wages. Sun Yi and Tianjin Lovol Heavy Industry Group Co., Ltd. Labor Dispute Appeal Case Tianjin First Intermediate People’s Court Civil Judgment (2013) YZMSZZ No.644. This case is about the work injury entitlements of employees under the general workhour system.