Two separate mandatory insurance obligations apply to most Singapore employers with foreign workers on Work Permits: Foreign Worker Medical Insurance and Work Injury Compensation (WIC) insurance. They are not the same obligation, they are not interchangeable, and holding one does not satisfy the other.
This post sets out what each policy covers, why both are required, and how they interact for a foreign worker on a Work Permit.
What FWMI covers
Foreign Worker Medical Insurance (FWMI) is required for all Work Permit holders and, since 1 October 2023, for S Pass holders as well. MOM sets the minimum coverage standards.
FWMI covers medical expenses arising from illness or injury. The mandatory minimum is inpatient hospitalisation and day surgery — the policy must cover these costs up to at least S$15,000 per policy year, with a monthly premium cap of S$15 (inclusive of GST) per worker. From 1 April 2026, the minimum annual coverage limit increased to S$60,000 per policy year under Phase 2 of MOM's enhanced FWMI requirements.
FWMI is designed to ensure that foreign workers receive medical treatment without the employer bearing the full cost out of pocket, and without the worker going untreated. If a Work Permit holder is hospitalised for an illness — dengue fever, a respiratory infection, a non-work-related injury — the FWMI policy responds.
FWMI does not cover compensation for work-related injuries or occupational diseases. It does not pay medical leave wages. It does not pay lump-sum compensation for permanent incapacity or death. Those are the domain of WIC insurance.
What WIC insurance covers
Work Injury Compensation (WIC) insurance is required under the Work Injury Compensation Act (WICA) for all manual workers regardless of salary, and for non-manual workers earning at or below S$2,600 per month in basic salary. This includes virtually all Work Permit holders.
WIC covers the statutory compensation payable when a worker suffers a work-related injury or occupational disease in the course of employment. The compensation framework includes the following.
Medical expenses for the work-related injury, up to S$53,000 per accident (effective 1 November 2025).
Medical leave wages during the worker's period of certified incapacity, paid at the rates prescribed under WICA.
Lump-sum compensation for permanent incapacity, calculated according to the worker's assessed degree of incapacity and their earnings, up to a statutory maximum.
Lump-sum compensation for fatal accidents, up to S$269,000 (effective 1 November 2025).
WIC is a no-fault scheme. The worker does not need to establish that the employer was negligent. The employer's WIC policy responds to the statutory compensation claim regardless of fault.
WIC does not cover medical expenses arising from illness unrelated to work. If a worker becomes ill and requires hospitalisation, the WIC policy does not respond — that is what FWMI is for.
Why both are required simultaneously
The two policies address different risks and different regulatory frameworks. An employer of foreign workers on a Work Permit is required to maintain both at all times.
FWMI is a condition of the work pass itself. If the FWMI policy lapses or is cancelled, the employer is in breach of the work pass conditions and may face penalties including revocation of the work pass and debarment from hiring foreign workers.
WIC is a statutory obligation under WICA. A lapse in WIC cover means that if a workplace injury occurs during the uninsured period, the employer bears the full statutory compensation liability directly, without the protection of the insurance policy.
The two policies can be placed with the same insurer or with different insurers, but they must both be in force. Confirm at renewal that both policies have been issued, that the periods of cover are continuous, and that neither has been cancelled or allowed to lapse.
You can read more about each policy in our posts on FWMI for Singapore employers and WICA and WIC insurance in Singapore.
If you would like TZY CO to review your current FWMI and WIC arrangements for your foreign worker headcount, or to place cover ahead of a new work pass application, please contact us.
Frequently asked questions
What is the difference between FWMI and WIC insurance in Singapore?
Foreign Worker Medical Insurance (FWMI) and Work Injury Compensation (WIC) insurance are both statutory requirements for employers of foreign workers in Singapore, but they cover different risks. FWMI covers medical expenses arising from illness or injury — including inpatient hospitalisation, day surgery, and in some cases outpatient treatment — up to MOM's prescribed minimum limits. WIC insurance covers compensation payable to a worker who suffers a work-related injury or occupational disease, including medical leave wages, permanent incapacity compensation, and death benefits. An employer of foreign workers on a Work Permit or S Pass is required to maintain both policies simultaneously.
Can an employer use one policy to satisfy both FWMI and WIC requirements?
No. FWMI and WIC are separate statutory requirements under different regulatory frameworks — FWMI under MOM's foreign worker levy and work pass conditions, and WIC under the Work Injury Compensation Act. They must be arranged as separate policies. Some insurers offer bundled quotations for administrative convenience, but the underlying policies remain distinct and must each meet MOM's minimum requirements independently. Employers should confirm at renewal that both policies are in force and that neither has lapsed or been cancelled.
This article provides general information only. It is not insurance advice. Policy availability, terms, conditions, and exclusions vary by insurer and product, and cover is subject to the full policy wording. Please contact TZY CO for advice on your specific situation.