Compulsory Insurance Singapore Employers
Must Provide for Employees
In Singapore, employers have a legal obligation to ensure the safety, health, and welfare of their employees. As part of this responsibility, specific insurance policies are mandated by law to provide adequate protection for employees in various circumstances. The key types of insurance policies required are outlined below.
- Work Injury Compensation Insurance (WIC)
Employers are required to provide Work Injury Compensation (WIC) insurance for certain categories of employees to ensure adequate coverage. Insurance must cover all local or foreign employee.
(1)
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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.
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(2)
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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.
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(3)
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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:
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Type
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Limits
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Current Limits
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New Limits
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Death
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Maximum
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SGD225,000
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SGD269,000
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Minimum
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SGD76,000
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SGD91,000
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Permanent Incapacity (PI)**
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Maximum
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SGD289,000
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SGD346,000
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Minimum
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SGD97,000
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SGD116,000
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Medical Expenses
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SGD45,000 or medical expenses incurred up to 1 year from the date of the accident, whichever is reached first
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SGD53,000 or medical expenses incurred up to 1 year from the date of the accident, whichever is reached first
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**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. |
- Medical Insurance
(1)
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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.
(a) Coverage Requirements
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:
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To implement for MI policies, renewals or extensions with start date effective from
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Enhanced MI requirements
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1 July 2023 (Stage 1)
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Higher annual claim limit of at least SGD60,000, with a co-payment of 75% by insurers and 25% by employers for claim amounts above SGD15,000.
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1 July 2025 (Stage 2)
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- Standardisation of allowable exclusion clauses
- Introduction of age-differentiated premiums for those aged 50 and below, and those aged above 50
- Requirement for insurers to reimburse hospitals directly upon the admissibility of the claim
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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.
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(2)
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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. |
- Personal Accident Insurance
Employers must provide personal accident insurance for work permit of migrant domestic workers (MDW), meeting the following criteria:
(1)
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Minimum sum assured of SGD60,000 per year.
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(2)
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Coverage for sudden, unforeseen, and unexpected incidents resulting in permanent disability or death.
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(3)
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Exclusions not exceeding those stipulated in the Employment of Foreign Manpower Regulations.
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This insurance safeguards domestic workers and their families by ensuring lump-sum compensation in cases of permanent disability or death due to accidents. Compensation must be directly payable to the worker or their beneficiaries.
The mandatory insurance policies for employees in Singapore reflect the country’s commitment to ensuring workers?welfare and employers?accountability. By adhering to these requirements, employers not only comply with the law but also foster a safe and supportive work environment that promotes productivity and trust. |
