The Answer in 60 Seconds

Section 24 of the Work Injury Compensation Act 2019 is the provision that makes WICA workable. Headed "Employer must be insured against liabilities under Act", it requires every employer to be insured for the full extent of the employer's liability under the Act for every employee except the classes excluded under section 24(2)(a). Without this provision, WICA's compensation framework would be theoretical - Section 24 makes it actual by ensuring funds exist to pay claims. Failure to insure is an offence under the related Section 25, carrying significant penalties; an uninsured employer also remains directly liable to the injured worker. For Singapore SMEs, Section 24 explains why WICA cover is compulsory for employees outside the excluded classes, why the policy must be an approved policy placed with an insurer on MOM's list of WICA insurers (the platform-operator panel of designated insurers runs separately - see how the two lists differ), and why operational compliance matters at every renewal cycle.

The Sourced Detail

Section 24 of WICA is one of the most consequential single provisions in Singapore employment law. Understanding what it requires, what it doesn't, and how it interacts with the broader WICA framework explains why mandatory insurance procurement is foundational rather than optional.

The text and structure of Section 24

Per WICA 2019 Section 24:

The section - headed "Employer must be insured against liabilities under Act" - requires every employer to be insured:

  • For the full extent of liability under the Act
  • For every employee, except the excluded classes prescribed under section 24(2)(a) (such as non-manual employees whose salary, not counting overtime, bonuses, the annual wage supplement, incentive payments and allowances, is more than S$2,600 a month)
  • With an insurer, under an approved policy
  • On the mandatory terms set within the WICA regulatory framework

The section sits within Part 3 of WICA (Work Injury Compensation Insurance) alongside Section 25 (which makes failure to insure an offence) and Section 26 (which sets out what counts as an "approved policy"). Together these provisions form the operational backbone of the compensation system.

Who Section 24 applies to

WICA covers employees regardless of salary, but the insurance duty does not apply to the excluded classes prescribed under section 24(2)(a). These include non-manual employees whose salary, not counting overtime, bonuses, the annual wage supplement, incentive payments and allowances, is more than S$2,600 a month and the employees of certain employers, such as the Government, banks, employers engaged in retail trade and hotel-keepers. The employer must still compensate those employees under WICA if they make a valid claim, whether or not they are insured. Subject to those exclusions, MOM states that employers must insure:

  • All manual workers, regardless of salary
  • Non-manual workers whose salary, not counting overtime, bonuses, the annual wage supplement, incentive payments and allowances, is S$2,600 a month or below
  • Specific scope determinations per the Act

Notable points: the threshold-based approach means employee classification matters operationally (a non-manual worker promoted past S$2,600 moves outside the compulsory insurance requirement but stays covered by WICA, so the employer must still pay any valid claim if that worker is uninsured); manual classification is determined by job duties not job title.

Buying WICA cover from an approved insurer

WICA cover must be placed under an approved policy (Section 26) with an insurer, on the mandatory terms MOM prescribes. MOM publishes the list of insurers writing WICA. As a practical matter:

The framework reflects MOM's risk-based approach: capacity assurance for mandatory cover, claims handling consistency, and operational standards. An insurer not approved for Singapore WICA (including reputable international insurers without the relevant approval) cannot legally write compliant cover for Singapore-employed workers.

What "full extent of liability" means

The phrase requires insurance for the employer's actual liability under the Act, not a token amount. Following the 1 November 2025 limit increases (see what they mean for claims and premiums):

  • Death: S$269,000
  • Total permanent incapacity: S$346,000
  • Medical expenses: S$53,000

Insurance must respond to these full statutory amounts. An employer cannot purchase a notional or capped policy that fails to match statutory liability.

The penalty for failure to insure

It is Section 25 of WICA that makes failure to insure an offence. The penalty framework includes:

  • Fines (significant for SME-scale operations)
  • Specific potential imprisonment for individuals responsible
  • Specific aggravating factors for repeat offences
  • Liability for a director or other officer of a corporation that commits the offence, in the circumstances set out in section 72 of WICA

Beyond the criminal offence, the more material commercial exposure is civil: employees retain rights to sue for compensation, and uninsured employers face direct exposure without the cushion that insurance provides. For severe injuries with full statutory limits, this can mean S$346,000+ direct payment from operating cash flow.

Section 24 and Common-Law claims

A point that confuses many SMEs: Section 24 mandates insurance for WICA liability - meaning compensation under the WICA framework. It does not require insurance for common-law negligence claims that might arise from the same incident.

Common-law claims (employer negligence beyond the WICA framework) are typically addressed via the Employer's Liability extension to WICA, often called "Common-Law Liability" or "Employer's Indemnity" extension. This extension is not technically required by Section 24 but is operationally essential because the gap between WICA caps (S$346k for total PI) and actual claim values can be substantial.

For Singapore SMEs, the practical insurance approach is therefore "WICA + EL extension" rather than WICA alone - the former satisfies Section 24 and addresses the broader negligence exposure; the latter satisfies Section 24 but leaves a material common-law gap.

Section 24 and platform workers

Following the Platform Workers Act 2024 (see what its first year of enforcement showed), platform workers are not employees in the traditional sense and Section 24 of WICA does not directly apply to them. Instead, section 34O of WICA, added by the Platform Workers Act 2024, requires platform operators to be insured against their liabilities under WICA in relation to platform workers, with an insurer on the separate platform operator panel of designated insurers.

The two duties (section 24 for employees and section 34O for platform workers, both in WICA) operate in parallel, with classification of a worker as employee vs platform worker determining which framework governs. Misclassification is a meaningful operational risk: a worker treated as a platform worker but later determined to be an employee could create retroactive Section 24 exposure for the employer.

Section 24 and cross-border employment

For Singapore SMEs employing workers outside Singapore, the Act reaches an accident overseas only where section 9 applies: the employee is ordinarily resident in Singapore and employed by an employer in Singapore but required in the course of employment to work outside Singapore. In practice:

  • Singaporean employees on overseas assignment may retain Section 24 coverage depending on assignment structure
  • Foreign employees working in Singapore are covered by Section 24 like any other employee
  • Specific case-by-case evaluation may be needed for hybrid arrangements

Cross-border SMEs typically structure Singapore WICA + foreign jurisdiction equivalents (state Workers' Comp in US, scheme-based in Australia, etc. - see cross-border articles for specific frameworks).

Common operational issues

Three areas where Section 24 compliance commonly fails:

Coverage gap during transition. When an SME changes WICA insurer, the gap between expiry of the old policy and inception of the new can create a window without cover. Even a one-day gap creates Section 24 non-compliance for any incident occurring in that window.

Headcount expansion mid-policy. As an SME hires, additional employees come into Section 24 scope. MOM tells employers to review the occupations and number of employees listed on the policy and not to under-declare, since all claims may be affected by a wrong declaration. Quarterly headcount reviews help with this.

Worker classification drift. A contractor or platform worker later determined to be an employee creates retroactive Section 24 exposure. Operational reality matters more than documentation.

What this means for procurement

Section 24 establishes the foundation that every Singapore SME WICA procurement must address:

The employer must hold WICA cover under an approved policy at all times for every employee section 24 requires it to insure (outside the excluded classes, all manual workers and non-manual workers whose salary, not counting overtime, bonuses, the annual wage supplement, incentive payments and allowances, is S$2,600 a month or less). The cover must respond to full statutory liability. Common-law gap is addressed via Employer's Liability extension as a commercial (not Section 24) matter. Cross-border, platform worker, and contractor scenarios require specific evaluation.

For SMEs, this means WICA renewal is not a routine renewal - it's a regulatory compliance event with criminal consequences for failure. Operational discipline matters at every cycle.

Common Mistakes / What Goes Wrong

  1. Coverage gap during insurer transition. Even one day of gap creates non-compliance.
  2. Employee numbers on the policy not kept up to date. MOM warns that under-declaring employees may affect all claims.
  3. Worker classification reliance on documentation over operational reality. Retroactive Section 24 exposure.
  4. No Common-Law / Employer's Liability extension. Major gap exposure beyond WICA framework.
  5. Procurement from an insurer not approved for Singapore WICA.
  6. Not reviewing the WIC policy and premium after the 1 November 2025 limit increases.
  7. Hybrid contractor / employee arrangements without specific advice.
  8. Cross-border employment without specific framework coordination. Multi-jurisdiction gaps.
  9. Platform Workers Act vs WICA scope confusion.
  10. No annual operational discipline review. Specific compliance drift.

What This Means for Your Business

For Singapore SME founders:

  1. WICA cover from an approved insurer is compulsory for the employees section 24 covers. Section 24 is the obligation; Section 25 makes failure to insure a criminal offence.
  2. Common-Law / Employer's Liability extension is operationally essential. Addresses the gap beyond WICA framework.
  3. Quarterly headcount review. Keep the employee numbers declared to the insurer accurate.
  4. No coverage gap during insurer transition. Operational discipline.
  5. Worker classification clarity. Operational reality assessment.
  6. For cross-border or platform worker scenarios, specific advisory.
  7. For specific industries with high WICA exposure (construction, manufacturing, logistics), specialist broker. Specific industry expertise.
  8. Annual operational compliance review. Specific evolving framework.

Section 24 is the provision that makes Singapore's workplace compensation framework actual rather than theoretical. SME founders that treat it as foundational compliance benefit from operational simplicity; SMEs that treat it as routine procurement face elevated risk across criminal, civil, and operational dimensions.

Questions to Ask Your Adviser

  1. For my workforce composition, what specific WICA scope applies?
  2. How is my Common-Law / Employer's Liability extension structured?
  3. For headcount changes mid-policy, how do we keep the employee numbers declared to the insurer accurate?
  4. For contractor / platform worker scenarios, what specific framework applies?
  5. As my workforce evolves, what compliance milestones should I plan for?

Related Information

Published 5 May 2026. Source verified 5 May 2026.