Work injury compensation insurance is the cover that meets your obligations to employees who are injured, or who fall ill, because of their work. In Singapore it is not optional for most employers. The requirements are set by the Ministry of Manpower under the Work Injury Compensation Act, and we structure cover so that it satisfies the law and sits correctly alongside the rest of your programme.
What work injury compensation insurance covers
WICA operates on a no-fault basis. An injured employee does not need to prove employer negligence, and does not need to bring a lawsuit, in order to be compensated. The cover responds across three areas: medical leave wages while an employee is certified unfit for work, medical expenses arising from the work injury, and lump-sum compensation for permanent incapacity or death.
The limits are set by MOM and were revised for accidents occurring on or after 1 November 2025. Medical expenses are covered up to $53,000, or one year from the date of the accident, whichever comes first. Lump-sum compensation is calculated by a formula based on the employee's average monthly earnings and age, up to a maximum of $346,000 for permanent incapacity and $269,000 in the event of death. We would structure cover so that it meets at least the statutory limits.
Who the law requires to hold it
Under WICA, you must hold work injury compensation insurance for every employee doing manual work, regardless of salary, and for every employee doing non-manual work who earns $2,600 or less a month, excluding overtime, bonuses, and allowances. The requirement covers both local and foreign employees. Failure to provide adequate insurance is an offence under the Act, carrying a fine of up to $10,000, imprisonment of up to 12 months, or both.
Higher-paid non-manual employees fall outside the mandatory category. If such an employee makes a valid claim, however, the liability still rests with you, which is why many employers choose to extend cover beyond the statutory minimum.
Where the exposure sits
The most common area of exposure is not the absence of a policy, but the accuracy of what was declared. Since 1 January 2021, WIC policies must be issued by a MOM-designated insurer and comply with MOM's compulsory terms, and your headcount and the occupation of each employee must be declared correctly. Under-declaring employees, or recording a manual role as non-manual, can affect a claim at the point it is needed most. Confirming cover at least 21 days before it is due to begin leaves room to get these details right.
How we structure it
We confirm which of your employees fall inside the mandatory category, ensure each role is classified correctly, and place cover with our appointed insurers on terms that comply with MOM's requirements. We review the declaration at each renewal as your headcount and operations change, and we remain your point of contact if a claim arises. The aim is cover that is correct, compliant, and quietly in place before you need it.