WICA: WHAT EVERY EMPLOYER MUST KNOW
Your Guide to the Work Injury Compensation Act in Singapore.
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As an employer in Singapore, it’s crucial to understand your responsibilities under the Work Injury Compensation Act (WICA) — a law that protects employees who suffer injuries or illnesses due to work-related activities. Whether you run a small business or manage a large organisation, non-compliance can result in hefty penalties, reputational damage, or even legal action.
Here’s what every employer must know about WICA — from who’s covered to how claims are processed.
What Is WICA?
The Work Injury Compensation Act (WICA) is a law that allows employees to make compensation claims for work-related injuries or diseases without having to file a lawsuit. It is administered by the Ministry of Manpower (MOM)and provides a faster, lower-cost alternative to common law proceedings.
Who Is Covered Under WICA?
WICA applies to all employees doing manual work, regardless of salary level, and non-manual employees earning $2,600/month or less. This includes full-time, part-time, temporary, and foreign workers.
Even employees earning more than $2,600/month can still make WICA claims if they’re doing manual work or if the employer voluntarily includes them in coverage.
✅ Examples of covered roles:
Construction workers
Delivery riders
Kitchen staff
Warehouse assistants
Office clerks (if under the salary threshold)
What Does WICA Cover?
Under WICA, compensation is payable for:
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Medical leave wages
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Medical expenses related to work injury or disease
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Permanent incapacity or death benefits
This includes:
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Treatment at hospitals/clinics
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Surgery, physiotherapy, and diagnostic tests
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Medication and medical leave certified by a doctor
Is Insurance Mandatory?
Yes — Work Injury Compensation Insurance is compulsory for:
All employees doing manual work
Non-manual workers earning $2,600/month or less
Failure to purchase insurance for eligible workers is an offence and may lead to fines of up to $10,000, imprisonment, or both.
It’s strongly recommended that employers insure all employees, even if not legally required, to protect against unexpected liabilities.
How Are Claims Filed Under WICA?
Employees can file a claim through MOM’s WICA system. Here’s what the process looks like:
Report the incident to MOM within 10 days of a work accident or diagnosis.
Provide the employee with medical leave wages and cover medical bills as required.
Cooperate with MOM’s assessment, which includes medical evaluations and employer-submitted incident reports.
MOM will issue a Notice of Assessment (NOA) to both parties, detailing the compensation amount.
If there are no objections, payment must be made promptly to the injured employee.
⚠️ Employers are not allowed to deduct compensation or medical costs from the employee’s salary.
Penalties for Non-Compliance
Failure to insure eligible employees
Delayed or non-payment of compensation
Failure to report accidents or deaths
These can result in:
Fines of up to $10,000
Jail terms of up to 12 months
Being barred from hiring foreign workers
Protect Your Business the Smart Way
Staying compliant with WICA isn’t just about avoiding penalties — it’s about protecting your employees and safeguarding your business from unexpected risks.
Whether you’re hiring your first employee or expanding your team, having the right insurance in place ensures peace of mind and financial protection.