Failing to provide adequate work injury compensation insurance in Singapore isn’t just a compliance oversight—it’s a serious offense carrying fines up to SGD 10,000, imprisonment for up to 12 months, or both. Yet many employers remain unclear about their exact obligations under the Work Injury Compensation Act (WICA). Understanding your responsibilities protects your workforce and ensures your business operates within legal boundaries.
Who Must Have Work Injury Compensation Insurance Coverage
Your first step in ensuring compliance is determining which employees require coverage. The requirement depends on the type of work performed and salary level, not universal application.
All employees engaged in manual work must be covered by WICA insurance, regardless of salary. This includes production line workers, maintenance staff, construction workers, and any roles involving physical labor. There is no minimum earning threshold for manual workers.
For non-manual workers, coverage depends on monthly earnings. You must provide insurance for all non-manual employees earning SGD 2,600 or less per month, excluding overtime, bonuses, annual wage supplements, and productivity incentives. Non-manual employees earning above this threshold do not require mandatory coverage, though you may choose to provide it voluntarily. If higher-earning employees subsequently make a valid claim, you remain liable to compensate them regardless of insurance status.
Coverage must extend to both local and foreign employees. There is no distinction in WICA requirements based on nationality or visa status. This is particularly important for employers with migrant workforces, as non-compliance carries identical penalties regardless of employee citizenship.
Compensation Limits Effective November 2025
The amounts employers must be prepared to pay in work injury claims increased significantly as of November 2025. Understanding these new limits clarifies the financial stakes of workplace injuries and the importance of maintaining adequate coverage.
Death Benefits: The maximum compensation for employee death from workplace injury is SGD 269,000, up from SGD 225,000. The minimum increased from SGD 76,000 to SGD 91,000. This substantial increase reflects the seriousness with which Singapore’s legal framework treats fatal workplace incidents.
Permanent Incapacity: For total permanent incapacity, the maximum compensation escalated from SGD 289,000 to SGD 346,000, with the minimum rising from SGD 97,000 to SGD 116,000. Partial permanent incapacity claims receive proportional compensation based on the degree of incapacity. These increases reflect the rising cost of long-term care and lost earning potential.
Medical Expenses: The cap increased from SGD 45,000 to SGD 53,000, covering hospital bills, medication, and related treatment received within one year of the accident. Employers of S Pass and Work Permit holders must additionally comply with medical expense obligations under the Employment of Foreign Manpower Act, potentially exceeding WICA limits.
Medical Leave and Light Duty Wages: Employees unable to work receive payment at their normal rate or two-thirds of average monthly earnings (whichever is higher) for days absent due to injury. Those placed on light duty receive compensation equivalent to the difference between light duty earnings and their average monthly earnings before injury.
Key Compliance Requirements and Deadlines
Compliance with WICA extends beyond simply purchasing a policy. Specific procedural requirements and deadlines must be followed to maintain valid coverage.
All work injury compensation insurance policies must be issued by a designated insurer. You cannot purchase WICA coverage from unauthorized insurers, even if they claim compliance. Policies from non-designated insurers do not satisfy legal obligations and expose you to penalties.
You must finalize insurance contracts and provide necessary information to your insurer at least 21 days before the policy commencement date. This advance notice ensures the insurer has sufficient time to process your application and issue valid coverage. Late submission can result in coverage gaps, leaving you uninsured and liable for penalties.
Required information includes your business registration number (UEN), nature of business, number of employees to be covered, their annual wages, and occupations. Providing accurate information is critical. Material misrepresentation or non-disclosure of relevant information can invalidate your policy and leave you exposed.
Project WICA policies, which provided temporary coverage for specific projects, are no longer permitted for new applications as of September 2020. If employees are covered only under a project policy, you may still face non-insurance charges because such policies do not cover all workplace incidents, including injuries during company transport or work outside the project site.
Common Compliance Mistakes to Avoid
Understanding the consequences of non-compliance serves as a powerful motivator for maintaining proper coverage. The penalties are severe.
The most direct penalty for failing to provide adequate coverage is a fine up to SGD 10,000, imprisonment for up to 12 months, or both. This criminal offense remains on your company record and affects business reputation and future regulatory interactions.
Non-disclosure or misrepresentation of material information to your insurer can result in policy cancellation precisely when you need protection most. If an employee makes a claim while your policy is cancelled due to misrepresentation, you lose the protection insurance provides.
Relying on project WICA policies as primary coverage is another common mistake. Many employers believe project policies are sufficient, only to discover later that specific incidents fall outside coverage, leaving the employer personally liable for compensation.
Another frequently overlooked requirement involves foreign workers. Employers must ensure all foreign employees have work injury compensation coverage and often must comply with additional Foreign Worker Medical Insurance (FWMI) requirements depending on worker classification.
Best Practices for Employers
Beyond meeting minimum legal requirements, adopting best practices helps you manage workplace injury risks more effectively and demonstrates commitment to employee safety.
Work with designated insurers exclusively and establish a clear relationship with your broker or insurance provider. A knowledgeable broker familiar with work injury compensation insurance can help you understand coverage details, ensure your policy accurately reflects your workforce, and guide you through the claims process if an injury occurs.
Maintain timely confirmation of insurance coverage and review your policy annually. As your workforce changes through hiring, promotion, salary increases, or departures, your insurance needs may evolve. Employees promoted to higher-paying positions or those receiving significant raises might move above or below the SGD 2,600 threshold, changing coverage requirements. Regular reviews prevent coverage gaps.
Consider complementary coverage beyond basic WICA requirements. While WICA provides essential protection, work injury compensation insurance paired with employers’ liability insurance offers additional coverage for broader workplace liability scenarios. Understanding the distinction between work injury compensation insurance and other employee benefits helps you build comprehensive risk management that protects both your business and workforce.
Maintain accurate records of all employees, their job classifications, and salary information. This documentation proves invaluable if the MOM audits your compliance or if you need to defend coverage decisions. Clear records demonstrate good faith effort to comply with regulations.
Frequently Asked Questions
Do I need to insure employees earning above SGD 2,600 per month?
Insurance is not mandatory for non-manual employees earning above SGD 2,600 monthly. However, you remain liable to compensate them for valid work injuries regardless of insurance status.
Are platform workers covered under WICA?
As of January 1, 2025, platform workers are covered under WICA. Platform operators are required to provide work injury compensation insurance coverage.
How long do employees have to file a claim?
Employees have up to one year from the date of accident to file a claim. Delays may result in employers or insurers disputing the cause.
What happens if I misrepresent information to my insurer?
Insurers have the right to seek financial recovery from employers for non-disclosure of material information. This causes greater financial strain, particularly with higher compensation limits now in effect.
Can I use project WICA policies as my primary coverage?
Project WICA policies are no longer permitted for new applications as of September 2020. They do not cover all workplace incidents and cannot substitute for comprehensive employer insurance.
Conclusion
Work injury compensation insurance represents both a legal obligation and a fundamental responsibility toward your employees. The increased compensation limits effective November 2025 underscore the serious financial consequences of workplace injuries and the importance of maintaining robust, current coverage through a designated insurer.
Your compliance protects your company’s legal standing and ensures employees receive proper compensation if injured at work. Review your current insurance coverage today to confirm it meets all current MOM requirements, verify your insurer is properly designated, and ensure your policy accurately reflects your workforce. Taking these steps now prevents costly penalties later and provides peace of mind knowing your business and employees are properly protected.
