If you employ workers in Singapore, the Work Injury Compensation Act (WICA) is one of the most operationally important pieces of legislation you need to understand. It governs your obligations when an employee is injured at work or contracts a work-related disease — and significant changes took effect on 1 November 2025, raising compensation limits across the board.
This guide explains who is covered, what you must insure, how compensation is calculated under the updated 2025 limits, and what happens when a claim is made. It is written for Singapore employers — whether you run a small business or a growing enterprise.
What Is the Work Injury Compensation Act?
The Work Injury Compensation Act 2019 (WICA) provides a no-fault compensation framework for work-related injuries and occupational diseases. Employees do not need to prove negligence on the employer’s part to make a claim, and they do not need to engage a lawyer. WICA is administered by the Ministry of Manpower (MOM) and offers a faster, lower-cost alternative to civil litigation.
WICA covers three categories of loss: medical leave wages (income replacement during recovery), medical expenses, and lump-sum compensation for permanent incapacity or death. The framework applies to the vast majority of employees in Singapore — both local and foreign — making compliance non-negotiable for employers.
Who Is Covered Under WICA?
WICA covers all employees in Singapore, with limited exceptions. The main exclusions are independent contractors (as opposed to employees), domestic workers, and members of the Singapore Armed Forces or Police Force (who have separate schemes).
Importantly, coverage is not dependent on salary level for most purposes — all employees are entitled to make a WICA claim if they are injured at work. However, the compulsory insurance obligation (discussed below) is limited to a narrower group.
A claim may be made for injuries arising out of and in the course of employment, as well as for listed occupational diseases. Claims must be filed within one year of the accident.
Compulsory Insurance: Who Must Be Insured
Employers are legally required to purchase work injury compensation (WIC) insurance for two categories of employees:
- All employees performing manual work, regardless of their salary level.
- All employees performing non-manual work who earn a gross monthly salary of $2,600 or less (excluding overtime, bonuses, annual wage supplement, productivity incentive payments, and allowances).
This obligation applies to both local and foreign employees. Failure to maintain adequate insurance is a criminal offence carrying a fine of up to $10,000, imprisonment of up to 12 months, or both.
Since 1 January 2021, all WIC insurance policies must be issued by a MOM-designated insurer and must comply with MOM’s compulsory terms. Employers should confirm their WIC policy at least 21 days before commencement and ensure all employee headcounts and occupations are accurately declared. Under-declaring employees can result in claims being affected or denied.
For employees outside the mandatory insurance categories (for example, higher-paid non-manual workers), you have discretion on whether to insure them — but if they make a valid WICA claim, you remain liable to compensate them regardless.
New Compensation Limits: Changes From 1 November 2025
MOM revised WICA compensation limits with effect from 1 November 2025. The updated limits apply to accidents occurring on or after that date. The table below summarises the key changes.
Medical Expenses
The maximum amount claimable for medical expenses (including hospital bills, medication, physiotherapy, occupational therapy, TCM, and emergency transport) increased from $45,000 to $53,000 per accident, or one year from the accident date, whichever is reached first.
Permanent Incapacity Compensation
Lump-sum compensation for permanent incapacity is calculated using the formula: Average Monthly Earnings × Age Multiplying Factor × % Permanent Incapacity. The statutory floor and ceiling changed as follows:
- Minimum compensation: from $97,000 × (% PI) to $116,000 × (% PI)
- Maximum compensation: from $289,000 × (% PI) to $346,000 × (% PI)
Where a doctor awards 100% permanent incapacity, an additional 25% is added to the compensation amount. The insurer must pay within 21 days from the date of service of the Notice of Assessment or Notice of Computation.
Death Compensation
For fatal workplace accidents, the lump-sum payable to the deceased’s family or dependants changed as follows:
- Minimum compensation: from $76,000 to $91,000
- Maximum compensation: from $225,000 to $269,000
The actual payout depends on the employee’s average monthly earnings and age at the time of the accident, calculated using MOM’s prescribed age multiplying factors.
Medical Leave Wages
When an injured employee is placed on medical certificate (MC), hospitalisation leave, or light duties, you must pay medical leave wages based on their Average Monthly Earnings (AME) — which is calculated over the 12 months prior to the accident and generally includes overtime and bonuses, but excludes transport allowances and reimbursements.
The payment rates are as follows:
- For outpatient MC or light duties: Full AME for the first 14 days; 2/3 AME from Day 15 to one year after the accident.
- For hospitalisation leave: Full AME for the first 60 days; 2/3 AME from Day 61 to one year after the accident.
Medical leave wages must be paid by the employee’s next pay day. They are compensation — not income — and are therefore not subject to income tax or CPF contributions (except for light duty wages, where CPF applies to the actual wages paid).
If the employee is no longer working for you, you remain obligated to pay medical leave wages for any MC or hospitalisation leave arising from the injury, including light duties issued while they were still employed.
Employer Reporting Obligations
When a work accident occurs, employers have specific reporting obligations under the Workplace Safety and Health Act (WSHA) and WICA:
- Report to MOM within 10 days if the employee is given more than 3 consecutive days of medical leave (or if it is a non-work-day accident that results in more than 3 days of leave).
- Report immediately (within 24 hours) if the employee is hospitalised for 24 hours or more, suffers a dangerous occurrence, or if the accident is fatal.
Accidents must be reported via MOM’s iReport system. Failure to report is an offence. Employers should also maintain records of all work injury claims — including medical reports, leave records, and correspondence — as MOM may request these during an audit or dispute.
The Claims Process: What Employers Must Do
When an employee files a WICA claim, MOM will assess the claim and issue a Notice of Assessment (NOA) setting out the compensation payable. Employers and employees have 14 days to object to an NOA. If no objection is filed, the assessment is final and the insurer must pay within 21 days.
As an employer, your practical obligations during a claim include:
- Pay medical leave wages on time as required.
- Pay medical bills first (where required) and then claim reimbursement from your WIC insurer.
- Provide your insurer with all relevant documents, including accident reports and medical certificates.
- Cooperate with MOM’s investigation if required.
- Provide light duties where medically indicated, or inform the treating doctor if no suitable duties are available.
Employers may dispute a claim by submitting a written objection to MOM within the 14-day window. Unresolved disputes are referred to the Employment Claims Tribunals. If you do not insure an employee who is legally required to be covered, you will bear the full compensation liability yourself.
WICA vs Common Law: A Key Distinction
Employees may elect to pursue compensation under common law rather than WICA, but they must initiate civil action within the WICA claim period. Common law claims require proof of negligence and typically involve higher legal costs and longer timelines. If successful, however, they can result in higher payouts than the WICA limits.
An employee cannot claim under both WICA and common law for the same injury simultaneously. Once a WICA claim is accepted and compensation is paid, the employee generally gives up the right to sue under common law. For employers, this “no-fault” aspect of WICA can actually be advantageous: it limits liability to defined statutory amounts rather than open-ended civil damages.
Practical Compliance Checklist for Employers
- ✅ Identify all employees requiring mandatory WIC insurance (manual workers; non-manual workers earning ≤$2,600/month)
- ✅ Purchase or renew WIC insurance from a MOM-designated insurer
- ✅ Accurately declare all employee headcounts and occupations to your insurer
- ✅ Update insurance coverage when headcount changes (new hires, promotions, salary changes)
- ✅ Know the updated 2025 compensation limits — especially for high-risk sectors like construction, manufacturing, and logistics
- ✅ Establish a clear internal procedure for reporting accidents and managing WICA claims
- ✅ Keep accident records and medical documents for at least two years after each claim
How Raffles Corporate Services Can Help
Navigating WICA compliance alongside your broader Employment Act obligations and CPF contribution requirements can be demanding, particularly for businesses managing a mixed workforce of local and foreign employees. At Raffles Corporate Services, our HR advisory team helps employers set up compliant employment frameworks, understand MOM regulatory requirements, and respond correctly when workplace incidents occur.
Whether you are setting up a new entity, onboarding your first employees, or reviewing your existing insurance arrangements after the November 2025 WICA changes, we are here to help. Contact us to speak with an adviser.
— The Editorial Team, Raffles Corporate Services