What is Work Injury Compensation Insurance?

As an employer, you have an inherent responsibility to protect your employees. Work Injury Compensation Insurance covers the cost of compensation claims from an employee due to injury or illness incurred on the job. It provides wage replacement and medical benefits to employees who are injured at work efficiently.

In exchange, employees relinquish their right to sue their employer for negligence. This helps to protect employers from legal liability while also assuring employees that they are guaranteed insurance coverage in case of work-related injuries or illnesses.

Who needs it?
What does it cover?
What is and isn’t covered?
Why is Work Injury Compensation Insurance necessary?

Who needs Work Injury Compensation Insurance?

Under the MOM Work Injury compensation Act (WICA), if you are an employer, you are legally required to buy Work Injury Compensation Insurance for:

All employees doing manual work

regardless of salary level.

All employees doing non-manual work

earning a salary of $2, 600 or less a month, excluding any overtime payment, bonus payment, annual wage supplement, productivity incentive payment and any allowance.

You must have insurance for both local and foreign employees. Failure to provide adequate insurance is an offence carrying a fine of up to $10,000 or jail of up to 12 months, or both.

However, if those employees make a valid claim, you will have to compensate them regardless of whether they are insured.

What does Work Injury Compensation Insurance cover?

  • Medical leave wages for days you were issued with medical leave or light duty, due to the work injury or disease.
  • Medical expenses, including your hospital bills, medication and other charges, due to the work injury or injury.
  • Lump sum compensation for permanent incapacity, current incapacity or death.
  • Temporary incapacity. This refers to an injury resulting in an employee temporarily unable to work and earn their usual wages, after being placed on medical leave.

Compensation for such work injuries consists of:

  • Medical leave wages for working days covered by doctor-granted MC, light duty or hospitalisation leave, up to one year from the date of the accident.
  • Medical expenses related to work accident for medical treatment received within one year from the date of the accident, or up to a maximum of $45,000, whichever is reached first.

Who is covered and who is not covered?

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The Work Injury Compensation Act (WICA)


Any local or foreign employee who is under a contract of service or contract of apprenticeship, regardless of salary, age or citizenship.

Does not cover:

  • Independent contractors and the self-employed.

  • Domestic workers.

  • Uniformed personnel

    Members of the Singapore Armed Forces, Singapore Police Force, Singapore Civil Defence Force, Central Narcotics Bureau and Singapore Prison Service.

WICA covers accidents arising out of and in the course of employment. Unless there is evidence to prove otherwise, an accident in the course of employment is regarded as “arising out of employment”.

Why is Work Injury Compensation Insurance necessary?

The number of workplace injuries in Singapore has worryingly been increasing year on year. As assurance for your employees, it would pay dividends for your bottom line and the company’s long-term responsibilities to better protect itself and its employees, regardless of the nature of business.

WIC would also dampen the financial impact of any work-related accident for your company. Without adequate WIC insurance, employers will find it hard to compensate employees in such unfortunate events.

Thus, the Ministry of Manpower dictates that all firms are to have WIC insurance for such demographics of workers.

Frequently Asked Questions

About Work Injury Compensation Insurance In Singapore

  • One-time illnesses like the flu or common cold aren't covered by WIC insurance in Singapore. Pre-existing conditions and incidents resulting from natural calamities are also not covered under WIC.
  • You will be compensated for the days you missed work because of a work-related injury or illness for up to 12 months from the date of accident. You'll only get full average monthly earnings (AME) up to 14 days for outpatient leave and 60 days for hospitalisation leave. After the stipulated number of days till 12 months from the date of accident, it will be reduced to ⅔ of the AME.
  • You must promptly pay medical leave wages to ensure that your injured employee has means of sustenance while their claim is being processed.

    However, the Commissioner for Labour can order the employee to return any sum paid as medical leave wages if the claim is subsequently deemed as invalid or false.

  • Yes. In accordance with the Work Injury Compensation Act, the liability of an employer to the employee who is injured due to a work-related accident, remains even if the employee has stopped working for the employer.
  • Injured employees have one (1) year from the date of the accident to decide whether to pursue their claim under WICA or under common law.

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