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What you need to know on Mandatory Employee Insurance 

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

1. Change in Salary Threshold 

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

$1,600 $2,100 $2,600

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)
Death Min

$69,000

$76,000

Max

$204,000

$225,000

Total (100%) Permanent Incapacity Min

$88,000

$97,000

Max

$262,000

$289,000

Medical Expenses

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

3. Extension of Coverage for Employees on Light Duty

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

As of 1 September 2020, Project WIC policies are no longer WICA-approved and only annual WIC policies will be available.
5. WIC Policies must be confirmed/renewed on Time

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. 

Required information:

  • 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
6. Fines and Penalties

Finally, it is important to know that fines and penalties will be imposed by MOM for employer breaches of legislative requirements:

Offences Fines/Penalties

(first offence)

Fines/Penalties

(subsequent offences)

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
worker insurance
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.

 

Unsure whether you fulfill MOM requirements for your employees?

Get advice on Mandatory Employee Insurance from our friendly experts today.

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