Work Injury Compensation in Singapore

What is Work Injury Compensation Act (WICA)?

The Work Injury Compensation Act (WICA) is a statute that enables employees to make claims for work-related injuries or diseases without the need to file a civil suit under common law. If the employee suffers any injury arising from and in the course of employment, his employer shall be liable to pay compensation to the employee or his family accordingly.

WICA is a no-fault system and provides a faster and cheaper alternative to settle compensation claims as employees do not need to engage a lawyer. A former version of it was known as ‘workmen compensation’ or ‘workmen injury compensation’.

Who is eligible to claim Work Injury Compensation?

The Work Injury Compensation Act (WICA) covers most employees who sustain work-related accidents or contract occupational diseases with a few exceptions. In general, as long as you are a local or foreign worker who is under a contract of service, you are covered and eligible to file claims under WICA, regardless of age, nationality or salary.

It is mandatory for employers to maintain insurance for the following employees:

• Employees involved in manual work
• Non-manual workers earning $2,100 or less a month (Threshold will be raised to $2,600/month from 1 April 2021)

Who is not eligible to claim Work Injury Compensation?

The Work Injury Compensation Act does not cover the following employees:

• Independent contractors
• Self-employed persons
• Domestic workers
• Uniformed personnel
  • g. Members of the Singapore Armed Forces (SAF), Singapore Police Force (SPF), Singapore Civil Defence Force (SCDF), Central Narcotics Bureau (CNB) and Singapore Prison Service (SPS).

When can you claim for Work Injury Compensation?

If you are an eligible employee, you can file for a claim under the Work Injury Compensation Act (WICA) if:

• You sustain an injury arising from and during your course of employment – e.g. during working hours or while on official duties
• You contract an Occupational Disease
• You contract a disease as a result of exposure to biological or chemical agents while at work
• You meet with an accident while travelling as a passenger on a vehicle operated by or on behalf of your employer and the vehicle is not public transport

You can file a claim under WICA even if:

• You no longer work for your employer
• Your work pass is cancelled
• The accident/injury occurred while you were on an overseas assignment in a foreign country
• You were on a flexi-work arrangement

What can you claim under WICA?

Under the Work Injury Compensation Act (WICA), an injured employee is entitled to claim the following types of compensation:

• Medical leave wages

Employees issued with MC or hospitalisation leave due to the work injury will be entitled to medical leave wages according to the following rates and limits:

For example, if an injured employee takes 8 days of outpatient medical leave and 93 days of hospitalisation leave, he will be entitled to the following medical leave wages:

1. For the first 8 days of outpatient medical leave and the first 60 days of hospitalisation leave, the injured employee will receive wages based on his Average Monthly Earnings.
2. For the subsequent 33 days of hospitalisation leave, he will be entitled to receive wages based on two-thirds of his Average Monthly Earnings.

Do note that public holidays, non-working days, and rest days are excluded from the number of days of medical leave under the Work Injury Compensation Act.

Effective 1 Sep 2020, employees on light duties due to work injuries will be compensated for their lost earnings based on their Average Monthly Earnings:

Calculate your Medical Leave Wage here.

• Medical expenses

The employer will be responsible for all eligible medical expenses incurred up to $45,000 or 1 year from the date of accident. Employees can only claim these medical expenses if the treatment is prescribed and billed by a Singapore registered medical practitioner.

Eligible medical expenses include:

1. Medical consultation fees
2. Daily ward charges
3. Treatment fees
4. Cost of medicine
5. Artificial limbs
6. Medical report fees
7. Medical transport charges – e.g. ambulance

If you wish to claim medical expenses for Physiotherapy or Occupational Therapy, these treatments must be provided by professionals registered with the Allied Health Professions Council (AHPC).

Alternatively, if you wish to claim medical expenses for Traditional Chinese Medicine (TCM), the treatment must be provided by professionals registered with the Traditional Chinese Medicine Practitioners Board (TCMPB).

• Lump sum compensation

In the event of permanent incapacity or death, the employee or his family will be eligible to claim a lump sum compensation.

1. Permanent incapacity

Permanent Incapacity refers to a state when an injury or illness has a permanent effect on an employee’s ability to work. The percentage (%) of Permanent Incapacity is based on a doctor’s medical assessment after the injured employee’s medical condition stabilises.

To calculate compensation amount:

Compensation Payable =

Employee’s Average Monthly Earnings X Age Multiplying Factor X % of Permanent Incapacity

The compensation payable is limited to the minimum and maximum as follows:

• Minimum Compensation = $97,000 X (% of Permanent Incapacity)
• Maximum Compensation = $289,000 X (% of Permanent Incapacity)

If the doctor awards 100% Permanent Incapacity, the injured employee will receive an additional 25% on top of the compensation amount.

2. Death

Family members or dependants of the employee may receive a lump sum compensation when an injury causes death.

To calculate compensation amount:

Compensation Payable = Employee’s Average Monthly Earnings X Age Multiplying Factor

The compensation payable is limited to the minimum and maximum as follows:

• Minimum Compensation = $76,000
• Maximum Compensation = $225,000

Employees: How to claim for Work Injury Compensation

There are 4 steps for employees to claim work injury compensation:

1. Report the incident

If you encounter work-related accidents or injuries, you should first seek medical attention and then inform your employer immediately. Alternatively, you may use the Ministry of Manpower’s incident reporting service to submit a work-related incident report.

If you wish to claim medical leave wages, please submit the original copy of your Medical Certificate to your employer and keep a photocopy for your own recording purposes.

If you wish to claim medical expenses, please submit the original copy of your medical bills to your employer and your employer will pay the hospital directly. If you have paid for the medical bills first, your employer is required to pay you back.

If your employer refuses to pay your medical bills or medical leave wages, you may choose to alert the Ministry of Manpower here.

2. File a claim application form

You are required to submit the claim application form within 1 year from the date of the accident.

You may submit your claim application form to MOM here.

After submitting the claim application form, you will be issued a case reference number which you will need to use when contacting MOM.

3.  Take a medical assessment

For employees eligible to claim work injury compensation, you are required to undergo a medical assessment to determine the extent of the injury sustained (e.g. % of permanent incapacity) and the amount of compensation payable.

Do note that the employee is required to attend all medical appointments, or his claim may be suspended.

4. Receive notice of assessment (NOA)

After MOM receives your medical report, they will calculate the compensation amount and issue a notice of assessment (NOA) to inform you and your employer the compensation payable. After which, your employer is required to pay you the compensation amount within the next 21 days.

If your employer chooses to object to the assessment, he may submit an objection form to MOM within 14 days from the date of issue on the NOA.

Employers: What to do during a claim for Work Injury Compensation

There are 3 steps employers need to do when an employee files for work injury compensation:

1. Report the incident

Employers are required to report the work-related accident to MOM within 10 days of the accident.

You may report the incident to MOM here.

2. Inform your insurer

If you are covered with a Work Injury Compensation Insurance, you should inform your insurer immediately about the incident. This will help you seek reimbursement for your employee’s medical leave wages and medical expenses.

3. Pay your employee

Upon receiving your employee’s original copy of his Medical Certificate, you are required to pay your employee’s medical leave wages by the next payday.

When you receive your employee’s medical expenses, you are also required to pay for the treatment as long as it was given by a Singapore-registered doctor.

If your employee has already paid for the medical expenses, you are required to reimburse him the amount by the next payday.

Work Injury Compensation FAQs for Employees

Do I need to hire a lawyer if I sustain a workplace injury?

If you wish to file a claim under the Work Injury Compensation Act, you do not need to hire a lawyer. A lawyer is only required when you choose to file a civil claim instead.

Should I file a claim under WICA or a civil claim?

Employees who sustain workplace injuries can either file for a claim under the Work Injury Compensation Act (WICA) or common law, but not both. One of the key differences is that claims under common law require a lawyer, which would incur additional legal fees, while a claim under WICA does not require a lawyer.

Furthermore, there are limits to the compensation amount for claims under WICA while there are no limits on the compensation amount for claims under civil law.

Read more about the differences between filing a civil claim and a claim under WICA here.

Can I look for a job while I have an ongoing work injury claim?

It is highly advisable not to continue working as you may aggravate your injuries. If you are medically certified by a doctor, you may choose to seek temporary employment.

Can I claim for permanent incapacity one year after the date of accident?

You will need to notify MOM and present supporting documents as to why you are making a late claim. MOM will assess the situation accordingly and inform you the decision subsequently.

Work Injury Compensation FAQs for Employers

Do I need to buy work injury compensation insurance for employees who are eligible for WICA?

You are required to buy work injury compensation insurance for the following employees:

• Employees involved in manual work
• Non-manual workers earning $2,100 or less a month (Threshold will be raised to $2,600/month from 1 April 2021)

Note that in event of a valid claim, employers are required to compensate the injured employee regardless of whether the injured employee in insured. As such, it is financially prudent to insure all employees to protect your liability as an employer.

Can I terminate an employee’s services following a workplace accident?

You may choose to terminate an employee following a workplace accident. However, you are still required to pay compensation even if the employee no longer works for you or has his work pass revoked.

Are employers liable for the cost of medical treatment received overseas?

Under the Work Injury Compensation Act (WICA), the employer is liable for the cost of medical treatment received overseas only if the employee had an overseas attachment and required immediate medical treatment in the foreign country.

Where can I find an insurer that provides work injury compensation insurance?

ALLEGIANCE is a general insurance intermediary that has been serving commercial clients for more than 20 years. We go through a systematic process to help employers arrange a comprehensive work injury compensation insurance at competitive prices. Find out more here.

For a quotation or more information, please contact us at 6513 6984 or email us at: client.service@allegiance.com.sg