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 is required to have WIC insurance in Singapore?
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.
What does work injury compensation insurance not cover?
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.
Frequently asked questions
Who is required to have work injury compensation insurance in Singapore?
Under the Work Injury Compensation Act (WICA), all employers in Singapore are required to maintain work injury compensation insurance for employees who are: (a) engaged in manual work regardless of salary level, or (b) engaged in non-manual work and earning a gross monthly salary of S$2,600 or less. This covers both local and foreign employees. Employers who fail to maintain the required insurance may face prosecution and fines under WICA. Directors of companies who do not draw a salary or who work on a purely executive basis may be excluded from WICA coverage, though this depends on the nature of their role; it is worth confirming the position with your insurer when arranging the policy.
What does work injury compensation insurance cover in Singapore?
WIC insurance covers an employer’s liability under WICA for work-related injuries and occupational diseases. This includes medical expenses up to the statutory limit, compensation for temporary incapacity (lost earnings during the period the employee is unfit for work), and lump-sum compensation for permanent incapacity or death. The compensation amounts are set by formula under WICA and depend on the employee’s earnings and the severity of the injury. WIC insurance does not cover common law claims for negligence: if an employee elects to pursue a common law claim instead of a WICA claim, that falls under a separate employer’s liability policy. Most employers arrange both covers under a combined WIC and employer’s liability policy.
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.