Home
Knowledge
Singapore Investments in Singapore Compulsory Insurance Singapore Employers Must Provide for Employees
KNOWLEDGE|
(1) |
Mandatory Insurance Coverage Employers must secure WIC insurance for: (a) All employees engaged in manual work, regardless of their salary. (b) Non-manual employees earning SGD2,600 or less per month, excluding overtime payments, bonuses, annual wage supplements, productivity incentives, and allowances.
Failure to provide adequate insurance is a legal offence, subject to fines of up to SGD10,000, imprisonment of up to 12 months, or both.
For other employees, employers have the flexibility to decide whether to buy insurance for them. However, if those employees make a valid claim, employers will have to compensate them regardless of whether they are insured.
|
||||||||||||||||||||||
|
(2) |
Compensation Entitlements Employees are entitled to claim compensation for medical leave wages, medical expenses and lump-sum compensation for permanent incapacity or death. Claims can be made up to 1 year from the accident. |
||||||||||||||||||||||
|
(3) |
Higher Compensation Limits Under the Work Injury Compensation Act
WICA protects all employees when they get work-related injuries or diseases and enables them to make claims in an efficient and low-cost manner, as they do not have to file a civil suit under common law. It provides compensation regardless of the party at fault. As such, compensation limits are capped to protect employers from large payouts.
Higher compensation limits under WICA will take effect from 1 November 2025, reflecting updates to align with wage growth and rising healthcare costs. The revised compensation limits are as follows:
**The maximum limits apply only for total PI cases (or 100% PI). If the PI% is lower than 100%, the minimum and maximum compensation sums will be prorated. The amounts stated also exclude the additional 25% compensation that is paid for total PI to offset the cost of care for the injured employee.
|
|
(1) |
Work Permit and S Pass holder
Please note that employers must purchase and maintain medical insurance (MI) for every Work Permit and S Pass holder under their employment. The cost of insurance cannot be transferred to the workers, and insurance details must be submitted online before issuing or renewing work passes.
The insurance must cover inpatient care and day surgery, including non-work-related medical conditions. As of 1 July 2023, the minimum coverage required is SGD60,000 per year. Policies with sub-limits (e.g. inpatient care, day surgery or ‘per disability/medical condition’) must meet this annual claim limit for all components. (b) Enhanced Medical Insurance (MI) The enhanced MI framework was introduced on 1 July 2023 to provide better financial protection for employers and employees. The framework will be implemented in two stages: Please note that employers do not need to buy MI if the Work Permit holder is also holding a Dependant’s Pass and already has an MI plan that meets the minimum coverage required for Work Permit holders. The insurance plan must cover the full period of the Work Permit validity. |
||||||
|
(2) |
Employment Pass (EP) holders
Employers in Singapore are not mandated to provide medical insurance for Employment Pass (EP) holders. Most EP holders may already possess their own medical insurance or prefer to select coverage that best suits their individual needs. For EP holders who do not have existing medical insurance, employers have the discretion to offer insurance coverage as part of their employment terms or to encourage EP holders to arrange for their own medical insurance independently.
|
|
(1) |
Minimum sum assured of SGD60,000 per year. |
|
(2) |
Coverage for sudden, unforeseen, and unexpected incidents resulting in permanent disability or death. |
|
(3) |
Exclusions not exceeding those stipulated in the Employment of Foreign Manpower Regulations. |
|
Disclaimer All information in this article is only for the purpose of information sharing, instead of professional suggestion. Kaizen will not assume any responsibility for loss or damage. |
Language
close
