What Is WICA?
The Work Injury Compensation Act (WICA) is Singapore's framework for compensating employees who suffer injuries or contract diseases as a result of their work. Administered by the Ministry of Manpower (MOM), WICA provides a no-fault compensation system — meaning employees can receive compensation without having to prove their employer was negligent.
For employers, the practical implication is straightforward: you need insurance to cover your obligations under the Act. WICA insurance pays for medical expenses, temporary and permanent disability compensation, and death benefits on your behalf, so a workplace injury doesn't become a financial crisis for your business.
Who Needs WICA Insurance?
If you employ anyone in Singapore, WICA likely applies to you. The Act covers:
- All employees doing manual work, regardless of their salary level
- Non-manual employees earning $2,600 or less per month
- Foreign workers on Work Permits and S Passes
In practice, most employers in Singapore insure their entire workforce — not just the categories legally required. The cost difference between insuring only mandatory categories and covering everyone is usually small, and the protection against common law claims (which can arise from any employee, regardless of salary) makes full-workforce coverage the sensible choice.
The obligation applies regardless of your company size. Whether you have 3 employees or 300, if they work for you in Singapore, you need WICA coverage.
What Does WICA Cover?
WICA insurance covers the following employer liabilities:
Medical expenses. All reasonable medical costs for treating work-related injuries and occupational diseases, including hospitalisation, surgery, rehabilitation, and outpatient care. There is no cap on medical expenses under WICA — the insurer pays what's reasonable and necessary.
Temporary disability. If an employee is on medical leave due to a work injury, WICA provides income replacement. The compensation is calculated based on the employee's average monthly earnings, subject to statutory limits.
Permanent disability. When an injury results in permanent incapacity, the employee is entitled to a lump sum compensation based on the degree of incapacity and their age and earnings. For total permanent incapacity, the maximum compensation is currently $289,000 (as of 2024 — check MOM for the latest figures).
Death. In the event of a work-related death, the employee's dependants receive compensation of up to $225,000, plus any accrued medical expenses.
What Are the Penalties for Non-Compliance?
MOM takes WICA enforcement seriously. Employers who fail to maintain valid WICA coverage face:
- Fines of up to $10,000
- Imprisonment of up to 12 months
- Both fine and imprisonment for repeat offenders
Beyond criminal penalties, an uninsured employer is personally liable for all compensation payments — which can easily run into hundreds of thousands of dollars for a serious injury. You also risk being debarred from hiring foreign workers, which for many industries in Singapore is an operational death sentence.
MOM conducts audits and responds to complaints. Work pass applications and renewals require proof of valid WICA coverage for the relevant workers. There is no grey area here — compliance is binary.
How to Get the Best WICA Rates
WICA premiums are based on several factors:
- Industry risk classification — construction and manufacturing pay more than office-based businesses
- Number of employees and total payroll — larger payrolls mean higher premiums
- Claims history — a clean claims record helps you negotiate better rates at renewal
- Insurer appetite — different insurers have different appetites for different industries
This is where a broker makes a measurable difference. Going direct to a single insurer means you see one price. Using a broker like TRS, we compare WICA rates across 18+ insurers — including Allianz, Chubb, Tokio Marine, MSIG, QBE, and others — to find the most competitive option for your specific risk profile.
We regularly see savings of 20–30% when clients switch from a direct relationship to a brokered placement. The coverage is identical (WICA benefits are set by statute), so the only difference is the premium you pay.
How to Get Started
Getting WICA coverage through TRS takes about 5 minutes:
- Tell us about your business — industry, number of employees, payroll, and any existing coverage
- We compare quotes from our panel of 18+ insurers
- You pick the best option and we handle the rest — policy issuance, employee schedule updates, and renewals
If your WICA policy is coming up for renewal, that's the perfect time to benchmark your rates against the broader market. And if you're a new employer setting up coverage for the first time, we'll make sure you're compliant from day one.
Get a WICA quote — it takes 2 minutes, and it's completely free.