As an employer in Singapore, some mandatory employee insurance is required by the Ministry of Manpower (MOM), such as work injury compensation (WIC) insurance.
Under the Work Injury Compensation Act (WICA), employees can file a claim if they were injured in a work accident or suffered a disease due to work. Here’s what you need to know.
Important Updates on WIC Insurance
As a business owner, you are mandated to purchase WIC Insurance for certain employees. From 1st April 2021 onwards, all non-manual employees earning up to $2,600 per month would require WIC insurance.
|Before 1 Apr 2020||From 1 Apr 2020||From 1 Apr 2021|
Salary threshold for non-manual employees
2. Increase in Payout Limits for Policy Benefits
Next, the payout limits for Death, Total Permanent Incapacity, and Medical Expenses have also increased.
|Limits||Previous Limits||New Limits (after 1 Jan 2020)|
|Total (100%) Permanent Incapacity||Min||
Up to $36,000 or 1 year from date of accident, whichever is reached first
Up to $45,000 or 1 year from date of accident, whichever is reached first
Also, employees on light duties due to work injuries will now also be compensated for their income loss based on their Average Monthly Earnings.
4. Discontinuation of Project WIC Policies
To ensure employers maintain adequate WIC insurance coverage at all times, MOM checks on whether firms have WIC insurance coverage as required under WICA 2019.
To avoid an infringement, employers need to confirm insurance contracts and provide the required information to the insurer at least 21 days before policy commencement.
- UEN (For group policies that covers multiple UENs, kindly provide the information for each UEN separately)
- Nature of business
- Aggregated headcount of employees
- Aggregated annual wages
- Occupation of employees
Finally, it is important to know that fines and penalties will be imposed by MOM for employer breaches of legislative requirements:
|Failure by employers to maintain compulsory WIC Insurance||S$10,000 fine and/or 12 months’ jail||S$20,000 fine and/or 12 months’ jail|
|Illegal deduction of salary by employers to defray insurance costs||S$5,000 fine and/or 6 months’ jail||S$10,000 fine and/or 6 months’ jail|
Mandatory Employee Medical Insurance
Other than WIC Insurance, you would also need to have Foreign Worker Medical Insurance (FWMI) coverage of at least $15,000/year for each work permit and S-Pass holder. This should cover inpatient care and day surgery, including hospital expenses for conditions that may not be work related.
Click here for more information about FWMI.
That aside, most employers also provide medical insurance coverage to all employees in their firm as part of their employee benefits package.
Click here to for more information on Employee Benefits Insurance.
Will there be Overlaps if I purchase both WICA and FWMI?
While there are situations whereby both WICA and FWMI can cover, they are not substitutes for each other and having one doesn’t exempt you from needing the other. Each of them caters to different needs.
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