The Answer in 60 Seconds

Under the Work Injury Compensation Act 2019 (WICA 2019), every Singapore employer of manual employees (regardless of salary) and every employer of non-manual employees whose salary, not counting overtime, bonuses, the annual wage supplement, incentive payments and allowances, is S$2,600 per month or less must procure work injury compensation insurance from an MOM-designated insurer, unless the employees fall in a class the WIC (Insurance) Regulations exclude, such as those of banks, retailers and hotel-keepers. Insurers that are not designated employer's insurers cannot lawfully offer or issue work injury compensation insurance for employers in Singapore (WICA 2019 section 30). The Commissioner for Labour designates licensed insurers that satisfy the prescribed requirements (regulation 7 of the WIC (Insurance) Regulations 2020). MOM's requirements for applicants are registration with the Accounting and Corporate Regulatory Authority (ACRA), being an MAS approved insurer, an undertaking to accept and comply with MOM's conditions for designated insurers, and no adverse records with, or investigation by, MOM or other agencies. The designated insurer must process all claims (including death and permanent-incapacity claims) under MOM-prescribed terms and SLAs. From 1 November 2025, the WICA compensation limits were uplifted: death compensation ranges from S$91,000 to S$269,000 (maximum, previously S$225,000); permanent incapacity (100% PI maximum) at S$346,000 (previously S$289,000); medical expenses at S$53,000 or one year from the date of accident, whichever is reached first (previously S$45,000). The Platform Workers Act 2024, in force 1 January 2025, brought platform workers (food delivery, private-hire) within the WICA framework, requiring platform operators to procure WIC insurance from designated insurers. When an insurer is removed from the designated list, existing policies continue per their stated period but new placements must move to another designated insurer at renewal. The list at mom.gov.sg is updated by MOM and should be verified before each placement.

The Sourced Detail

The Work Injury Compensation Act 2019 succeeded the predecessor WICA Cap 354. Substantive provisions commenced on 1 September 2020; the requirement that WIC insurance policies be issued by a designated insurer on MOM's compulsory terms applied to policies commencing on or after 1 January 2021. WICA 2019 created the MOM-designated insurer regime, replacing the earlier framework where any general insurer could issue WICA-compliant cover.

The designated insurer regime is regulatory infrastructure designed to ensure that statutory work injury compensation is consistently delivered to injured employees, regardless of which insurer underwrites the employer's policy. The regime achieves three structural objectives:

Standardisation of policy terms. Every designated insurer must issue WIC insurance policies on MOM-prescribed compulsory terms. Coverage scope, claim-handling procedure, payment timelines, and statutory-liability limits are uniform across insurers.

Direct payment to injured employees. WICA 2019 maintains the structural feature where the designated insurer pays statutory compensation directly to the employee on confirmation of a compensable injury, without requiring the employer's intermediation.

Audit and transparency. The Commissioner for Labour holds standing audit and transparency powers over designated insurers, including claims-handling SLAs and aggregate claims data sharing.

Headline 2024-2026 evolution

1 November 2025: WICA compensation limits uplifted. The MOM press release of 8 February 2024 announced the revised compensation limits, applied to accidents occurring on or after 1 November 2025:

Death: range S$91,000 to S$269,000, up from S$76,000 to S$225,000 (maximum approximately 19% uplift).

Permanent incapacity, 100% maximum: S$346,000, up from S$289,000 (approximately 19% uplift).

Medical expenses: S$53,000 or one year from the date of accident, whichever is reached first, up from S$45,000 (approximately 17% uplift).

MOM said the update was part of its regular review to keep pace with wage growth and rising healthcare costs; the limits were last reviewed in 2020. Because the compulsory terms indemnify the employer against all sums it is liable to pay under WICA and its regulations "as may be amended from time to time", a policy in force covers the new limits for accidents on or after 1 November 2025, whenever it was issued; on a change in the law the insurer may instead cancel on 30 days' notice or charge a reasonable additional premium (compulsory terms, clause 6(a)).

1 January 2025: Platform Workers Act 2024 (PWA) in force. The Platform Workers Act 2024 brought platform workers (food delivery, private-hire passenger transport via online platforms, taxi via online platforms) within the WICA framework. Platform operators (the platform companies themselves) must procure WIC insurance from designated insurers covering the platform workers they engage. This is a material expansion: prior to 1 January 2025, platform workers were typically classified as self-employed and outside the WICA regime.

1 April 2021 (prior context, still operative): mandatory insurance threshold. Employers must hold WICI for every manual employee (regardless of salary) and every non-manual employee whose salary, not counting overtime, bonuses, the annual wage supplement, incentive payments and allowances, is S$2,600 per month or less, subject to the excluded classes. The threshold rose in two phases: to S$2,100 on 1 April 2020 and to S$2,600 on 1 April 2021.

Verbatim statutory text - section numbers and SSO routing

The WICA 2019 consolidated text is at sso.agc.gov.sg/Act/WICA2019. The Work Injury Compensation (Insurance) Regulations 2020 and WICI Compulsory Terms are accessible from the WICA 2019 subsidiary-legislation index on SSO. MOM's work injury compensation insurance page is at mom.gov.sg/workplace-safety-and-health/work-injury-compensation/work-injury-compensation-insurance. The current MOM-designated insurers list is linked from that page; SMEs and intermediaries should verify the current list at the time of placement, as the list is updated periodically.

The provisions that matter here:

The WICA 2019 section defining "designated insurer" and the Commissioner for Labour's designation power.

The WICA 2019 section setting the compulsory insurance obligation: every employer of manual employees (any salary), and every employer of non-manual employees whose salary, not counting overtime, bonuses, the annual wage supplement, incentive payments and allowances, is S$2,600 per month or less, subject to the excluded classes.

The WICA 2019 section setting the three compensation heads: medical expenses, medical leave wages, and lump-sum permanent incapacity or death compensation.

The WICA 2019 Schedule containing compensation amounts effective from 1 November 2025.

The penalty section for failure to insure: fine up to S$10,000 and/or imprisonment up to 12 months, with higher penalties for second or subsequent offences. The exact current penalty text should be confirmed on SSO before reliance.

How designation works

The Commissioner for Labour designates insurers under the WICA 2019 framework. The designation criteria are not exhaustively listed in the statute but include:

MAS licensing as a general insurer registered to underwrite work injury compensation business in Singapore.

Registration with the Accounting and Corporate Regulatory Authority (ACRA).

No adverse records with, and not under investigation by, MOM or other agencies.

Compliance with MOM-prescribed compulsory policy terms.

Compliance with prescribed SLAs for claim acknowledgement, investigation, and payment.

For an insurer that is or has been designated, compliance with its obligations and conditions as a designated insurer, and no unreasonable refusal to make work injury insurance available to employers.

Designation is for a period the Commissioner specifies (MOM gives the validity as 3 years), subject to renewal. The Commissioner may cancel or suspend a designation where the insurer fails to comply with its conditions, the Commissioner's directions or the Act's requirements (section 34), and may cancel it on the insurer's own application (section 31(8)).

Implications when an insurer is removed from the list

If an insurer is removed from the MOM-designated list:

Existing policies in force at the date of removal continue per the policy's stated period of insurance. The insurer remains liable for claims on policies issued before removal.

New placements with the removed insurer cannot meet the duty to insure under section 24 of WICA 2019, which requires approved employee insurance policies with designated employer's insurers.

Renewal placements must move to another designated insurer at the renewal date.

Claims handling on existing policies continues. The Commissioner for Labour retains audit powers over claims under existing WICI policies regardless of the insurer's current designated status.

SMEs whose current insurer is removed should specifically engage with their broker or intermediary at renewal to identify alternative designated insurers, obtain comparative quotes, and verify the new placement before the existing policy expires.

The foreign worker framework

Alongside the WICA 2019 designated insurer regime, MOM administers separate foreign-worker insurance requirements:

Foreign Worker Medical Insurance (FWMI) is mandatory under the Employment of Foreign Manpower Act 1990 (EFMA) for Work Permit and S Pass holders. FWMI covers inpatient medical expenses for the foreign worker. The minimum annual coverage amount is set by MOM and has stepped up in prior cycles.

Migrant domestic worker (MDW) insurance is required of MDW employers: medical insurance with an annual claim limit of at least S$60,000 and personal accident insurance with a sum assured of at least S$60,000 a year, plus a S$5,000 security bond for each MDW who is not Malaysian. MOM says employers can buy the medical insurance "from any insurer if it meets our minimum requirements".

Employer's statutory liability for medical expenses under EFMA can exceed the WICA medical cap of S$53,000. Some market insurers offer extended medical cover up to S$300,000 to address this gap, and SMEs employing foreign workers should specifically test the gap at procurement.

Employment Pass holders do not require FWMI under EFMA. Medical cover (Group Hospitalisation and Surgical, Group Term Life) is commercially common for EP holders but not statutorily mandated.

Claim-time worked example

SME A (logistics, 18 manual workers, WICI renewal 1 June 2026). On 12 April 2026, MOM removes Insurer X from the designated list. The sequence:

12 April 2026: Insurer X removed from the list.

Existing policy continues to 31 May 2026 (the stated period of insurance). Insurer X must continue handling claims under MOM-prescribed compulsory terms.

12 April to 31 May 2026: SME A engages the broker to identify alternative designated insurers. Quotes obtained.

1 June 2026: Renewal placement moves to another designated insurer (Insurer Y). Cover continues seamlessly.

Any accident occurring on or after 1 June 2026 attracts the new Insurer Y's WICI policy, with claims handled by Insurer Y.

Any accident occurring before 1 June 2026 (under Insurer X) remains within Insurer X's claim-handling responsibility.

Compensation limits: for accidents occurring on or after 1 November 2025, the new statutory limits apply regardless of which insurer underwrites the policy (the MOM-prescribed compulsory terms automatically update).

Common Mistakes / What Goes Wrong

  1. Procuring WICI cover from a non-designated insurer. A policy from an insurer that is not a designated employer's insurer does not meet the duty to insure under section 24 of WICA 2019. SMEs procuring from non-designated insurers face statutory penalties under WICA 2019 (fine up to S$10,000 and/or imprisonment up to 12 months).

  2. Not verifying the designated list before placement. The list is updated periodically. SMEs and intermediaries should verify the current list at each placement and renewal.

  3. Assuming MDW insurance needs a designated insurer. MOM says MDW medical insurance can be bought "from any insurer if it meets our minimum requirements". The designated insurer list is for WIC insurance, which an employer must buy from a designated employer's insurer wherever the duty to insure applies, for local and foreign employees alike.

  4. Treating "manual employee" and "non-manual employee" interchangeably. Every manual employee (regardless of salary) requires WICI, subject to the excluded classes. Non-manual employees require WICI only if their salary, not counting overtime, bonuses, the annual wage supplement, incentive payments and allowances, is S$2,600 a month or less. The test, in the Second Schedule to the WIC (Insurance) Regulations 2020, is whether the employee is "employed otherwise than by way of manual labour".

  5. Assuming a policy issued before 1 November 2025 stops at the old limits. The compulsory terms indemnify the employer against all sums it is liable to pay under WICA and its regulations "as may be amended from time to time", and the prescribed policy schedule carries no limit figures, so the new limits apply to accidents on or after 1 November 2025 under any approved policy in force. On a change in the law the insurer may cancel on 30 days' notice or charge a reasonable additional premium.

  6. Underestimating the employer's statutory liability for foreign worker medical expenses. EFMA imposes statutory liability for medical expenses that can exceed the WICA cap of S$53,000. Some SMEs procure only the WICI-aligned medical limit and absorb the gap; market insurers offer extended limits to S$300,000 that close this gap.

  7. Not addressing platform workers in the procurement programme. Platform operators in food delivery, private-hire passenger transport, and taxi services must from 1 January 2025 insure their platform workers with a designated platform operator's insurer under section 34O of the Work Injury Compensation Act 2019, inserted by the Platform Workers Act 2024. SMEs operating in or adjacent to these sectors should specifically verify their PWA obligations.

  8. Letting cover lapse mid-period due to administrative oversight. WICI cover must be continuous. Lapse exposes the employer to direct statutory liability and to potential prosecution under WICA 2019.

  9. Failing to maintain accurate wage and headcount declarations. Premium is calculated on declared annual wage roll. Material misstatement can trigger the insurer's recovery clause if discovered post-claim, and can also constitute a regulatory breach.

  10. Assuming "common law" employer's liability is automatically covered. WIC insurance covers the employer's statutory WICA liability. Common-law employer's liability (where the employee elects to sue at common law for negligence rather than claim under WICA) is not part of the compulsory terms: regulation 2(3) of the WIC (Insurance) Regulations 2020 lets an approved policy add it, and MOM says employers can discuss riders for common law liabilities with their insurer. Whether a policy carries it, and on what terms, should be checked.

What This Means for Your Business

For a Singapore SME procuring WIC insurance, the structural order of operations is: identify the employees the duty to insure covers (manual employees, and non-manual employees whose salary, excluding overtime, bonus, annual wage supplement, productivity incentive payments and allowances, is S$2,600 a month or less, unless in a class the WIC (Insurance) Regulations exclude); declare accurate headcount and wage roll; verify the current MOM Designated Insurer list at the time of placement; confirm the policy is on MOM-prescribed compulsory terms; check whether the policy carries common-law liability cover and on what terms; for foreign workers, confirm FWMI cover and any extended medical limit; for MDW employers, confirm the medical and personal accident insurance MOM requires.

For SMEs whose current insurer is removed from the designated list, the workflow is: review the policy expiry date; engage the broker to identify alternative designated insurers; obtain comparative quotes; ensure renewal placement is in force before the existing policy expires; preserve all claims-handling records under the prior insurer for any claims that may arise after renewal.

For SMEs in platform operator businesses (food delivery, private-hire, taxi via online platforms), section 34O of the Work Injury Compensation Act 2019, inserted by the Platform Workers Act 2024, requires WIC insurance for platform workers from 1 January 2025. The process is like standard WIC insurance, but the policy must be an approved platform worker insurance policy from a designated platform operator's insurer, a separate list from the employer list.

Questions to Ask Your Adviser

  1. Is our current WICI insurer on the MOM Designated Insurer list, and was the list verified at the most recent placement?
  2. For our headcount, does our WIC insurance cover every employee the duty to insure applies to (manual employees, and non-manual employees whose salary, excluding overtime, bonus, annual wage supplement, productivity incentive payments and allowances, is S$2,600 a month or less, unless in an excluded class), and, if we are a platform operator, do we hold a separate approved platform worker insurance policy from a designated platform operator's insurer?
  3. For our foreign workers, do we have FWMI cover at the current MOM minimum, and is the extended medical limit (e.g., S$300,000) in place to address the EFMA statutory liability gap above the WICA medical cap?
  4. For MDW employers, does the MDW medical and personal accident insurance meet MOM's minimum requirements?
  5. For accidents occurring on or after 1 November 2025, has our insurer confirmed that our policy responds at the new WICA compensation limits (S$269,000 death maximum, S$346,000 permanent incapacity maximum, S$53,000 medical), and whether it will charge any additional premium?
  6. Does our policy carry common-law liability cover, and if so on what terms and with what limit?
  7. At renewal, are we receiving the broker's confirmation that the current MOM Designated Insurer list has been checked?

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