The Work Injury Compensation Act was passed into law in 2019. This act is designed to ensure Singaporean and foreign workers are compensated in case of work injuries. These injuries are not only costly, but they may also cause incapacitation and loss of employment.
WICA Insurance is an act that compels employers to buy work insurance for employees doing manual and non-manual work. The insurance covers manual labour irrespective of salary but caps the salary for non-manual labour at $2,600 or less. Employers who fail to take WICA insurance risk fines or jail.
WICA insurance has become critical for all businesses, but some exceptions exist. For example, Employers may decide whether to get WICA Singapore for workers who do not perform manual labour and earn more than $2,600. The downside is employers may be obligated to pay if the workers make a claim, whether they are insured or not.
A Guide On Compensations Under WICA
When employers take out WICA insurance, the insurer will be obligated to cover the following costs when the need arises.
● Medical leave wages.
● Lump-sum payment for short-term or permanent incapacitation.
● Compensation for death due to work injuries.
● Medical expenses.
However, there are some caveats to the WICA insurance. For example;
● Medical leave wages are only compensated during the days you are hospitalized. They are paid when you are assigned light duties until you are well enough to return to your usual tasks. However, they are not payable for non-working days, such as weekends or public holidays.
● Hospitalization leave pay changes depending on hospitalization duration. You get full compensation for up to the first 60 days. After that, the pay reduces by a third and only goes on to the end of the first year after the accident.
Is WICA Compulsory In Singapore?
Work injuries are unavoidable, especially for workers performing manual labour. Employers are expected to cover hospital bills and compensation claims if they are injured at work. So, it is safer for them to take insurance just in case they need to use the cover.
WICA is compulsory for all employees in Singapore, with some exceptions. However, even when not insured, workers can still sue for compensation, and employers may be forced to pay out of pocket. In addition to employees covered in the WICA act, most employers insure exempted employees.
WICA insurance Singapore has been amended multiple times since it was first passed into law. For example, it initially set $2,100 as the threshold for manual labour. However, in April 2021, the salary scale was increased to $2,600 to bring in more manual labourers at risk of work injuries.
Employers need to understand WICA insurance, which employees are covered, and those that do not need coverage. They also need to be aware that they risk losing money should an uninsured employee suffer a work injury because they may be liable for compensation.
Additionally, employees should know their right to compensation under WICA Singapore. They should know how to file their claim and when to do it. Once done correctly, employers and workers have nothing to worry about because workers get compensation, and businesses are protected from financial loss due to large compensation claims.
