What is the Work Injury Compensation Act?
The Work Injury Compensation Act (WICA) lets employees make claims for work-related injuries or diseases without having to file a civil suit under common law. It is a low-cost and quicker alternative to common law for settling compensation claims.
Who needs to be insured?
Under the legislation, You need to get work injury compensation insurance for all employees doing manual work, as well as all employees earning less than $1,600 a month.
If you are an employer, you are required to buy work injury compensation insurance for:
All employees doing manual work, regardless of salary level.
All employees doing non-manual work, earning less than $1,600 a month.
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.
For other employees, you have the flexibility to decide whether to buy insurance for them. However, if those employees make a valid claim, you will have to compensate them regardless of whether they are insured.
*The above are extracts from the Singapore Ministry of Manpower website.
** Information extracted as of Feb 2016
*** The website may be updated and accurate information may be located here