From 1 November 2025, significant changes to Singapore’s Work Injury Compensation Act (WICA) take effect. The Ministry of Manpower (MOM) is raising compensation limits to keep pace with rising healthcare and wage inflation, providing greater protection for injured employees and posing new obligations for employers and insurers.
Here’s what you need to know about WICA in Singapore and how these updates may impact your business.
What is WICA – A Quick Refresher
WICA offers a streamlined, no-fault compensation framework for employees who suffer work-related injuries or diseases. Under WICA in Singapore, employees are entitled to claim:
- Medical leave wages
- Medical expenses
- Lump-sum compensation for permanent incapacity, temporary incapacity, or death
These protections apply regardless of fault and without the need for a full civil suit.
What’s Changing on 1 Nov 2025
MOM has announced revisions to the compensation limits under WICA in Singapore, to better reflect inflation, wage increases and rising medical costs.
Key revised limits include:
| Type of Compensation | Current Limit | New Limit from 1 Nov 2025 | Percentage Increase |
| Death (maximum) | S$225,000 | S$269,000 | 19.5% |
| Death (minimum) | S$76,000 | S$91,000 | 19.8% |
| Permanent Incapacity (PI) (maximum, 100% PI) | S$289,000 | S$346,000 | 19.8% |
| Permanent Incapacity (minimum) | S$97,000 | S$116,000 | 19.6% |
| Medical Expenses | S$45,000 or up to 1 year from date of accident, whichever is first | S$53,000 or up to 1 year from date of accident, whichever is first | 17.8% |
The maximum limits apply only for total PI cases (or 100% PI). If the PI% is lower than 100%, the minimum and maximum compensation sums will be prorated. The amounts stated also exclude the additional 25% compensation that is paid for total PI to offset the cost of care for the injured employee.
Implications of the Changes
These are not just headline numbers. The changes have practical consequences for employers, insurers, and employees alike.
1. Increased Employers’ Financial Liabilities
- With higher caps, claims for medical expenses, death or incapacity will cost more. Companies that are not insured for work injury compensation insurance should consider purchasing it as the financial exposures are now even higher. Businesses should also consider insuring all their employees instead of just their manual employees and non-manual employees earning less than $2,600 a month. As Group Medical or Group Personal Accident insurance is an employee benefit program, it should not be a replacement for Work Injury Compensation Insurance (WICI) which covers the employer’s liability at Statute Law (WICA) and at Common Law.
- Businesses should also consider insuring all their employees instead of just their manual employees and non-manual employees earning less than $2,600 a month.
- As Group Medical or Group Personal Accident insurance is an employee benefit program, it should not be a replacement for Work Injury Compensation Insurance (WICI) which covers the employer’s liability at Statute Law (WICA) and at Common Law.
- Claims for Medical expenses and Medical Leave Wages under a WICI are generally on a reimbursement basis (i.e. Companies need to make payment first and submit a claim for the insurer’s reimbursement). With the increased compensation limits, businesses will need higher cash reserves to deal with such contingencies.
- Under the Employment of Foreign Manpower Act , employers are legally responsible for the medical expenses of their employees who are Work Permit (WP) and S-Pass holders even if the medical expenses exceed the WICA medical expenses cap of S$53,000. Some insurers can offer enhanced medical coverage over and above the Act limit, up to S$300,000 and businesses should consider requesting a higher limit on their WICI.
- Some insurers can offer enhanced medical coverage over and above the Act limit, up to S$300,000 and businesses should consider requesting a higher limit on their WICI
2. Higher Insurance Premiums and Review of WICA Insurance Policy
- Insurers will likely increase premiums to account for these higher exposures.
- Employers should revisit their WICA insurance policy to review their NON-ACT coverages. These are policy extensions that provide additional benefits beyond WICA benefits and are typically sub-limited. E.g. Travelling to and from work extension (Sub-Limit: S$20,000 per employee). It is a good idea to review these sub-limits to ensure they keep pace with increases in the WICA compensation limits.
- It is a good idea to review these sub-limits to ensure they keep pace with increases in the WICA compensation limits.
3. Compliance, Risk Management & Safety
- With compensation payouts on the rise, it’s more important than ever for businesses to prioritise workplace safety. By implementing robust safety protocols, conducting regular risk assessments, and providing continuous training, companies can significantly reduce the risk of workplace injuries — ultimately helping to prevent costly claims and disruptions.
4. Disclose Material Information to Ensure Valid Work Injury Compensation Insurance Coverage
- Employers have a responsibility to disclose all material information related to their employees’ work when applying for or renewing Work Injury Compensation insurance (WICI). This includes details such as job scope, wages, number of employees, and any other relevant information that may affect the insurer’s assessment of risk and policy terms. Failure to provide accurate or complete information may be considered non-disclosure, which can lead insurers to deny claims or seek financial recovery from the employer. With higher compensation limits coming into effect, such a recovery could result in a significant financial burden for businesses.
Failure to provide accurate or complete information may be considered non-disclosure, which can lead insurers to deny claims or seek financial recovery from the employer.With higher compensation limits coming into effect, such a recovery could result in a significant financial burden for businesses.
In Summary
The upcoming WICA changes from 1 November 2025 raise the stakes for both employees and employers. For employees, the higher compensation limits mean stronger protection in the event of work-related injuries, diseases or fatalities. For employers, there is greater obligation, financially and operationally, to manage risk, ensure proper insurance and maintain workplace safety.
To stay compliant and protect both your employees and your business, it’s essential to stay informed about legislative changes and ensure your WICA insurance policies are up to date.
If you’d like help reviewing your WICA insurance policy, understanding your liabilities, or adjusting policy coverage, we at Allegiance can assist. Let us ensure you’re not caught off guard when the new limits kick in.
Let us ensure you’re not caught off guard when the new limits kick in.
Talk to us today.
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