Changes to the Work Injury Compensation Act (WICA) in 2020: What You Need to Know

 

Changes to the Work Injury Compensation Act (WICA) in 2020: What You Need to Know

The Work Injury Compensation Act (WICA) in Singapore underwent significant amendments in 2020 to enhance the protection of employees and streamline the claims process. These changes aimed to ensure fairer compensation, better coverage, and improved clarity for both employers and workers. Below is a comprehensive analysis of the key changes introduced, their impact, and what they mean for different stakeholders.

Background and Purpose of WICA

Enacted to safeguard workers’ rights in case of work-related injuries or illnesses, WICA provides a straightforward and efficient alternative to seeking compensation through the courts. The Act covers medical expenses, lost wages, and compensation for permanent disability or death due to workplace accidents.

Over the years, the landscape of employment has evolved, with new job categories and risks emerging. The amendments introduced in 2020 were designed to address these changes, ensuring that more workers are protected under the Act while simplifying and expediting the claims process.

Key Amendments Introduced in 2020

1. Expanded Coverage for Employees

Previously, WICA applied primarily to manual workers and non-manual employees earning up to $1,600 per month. Recognizing the changing employment landscape, the Ministry of Manpower (MOM) raised the salary threshold for non-manual employees to $2,600, enabling a larger segment of the workforce to benefit from WICA protections.

This adjustment was implemented in phases:

• April 2020: Threshold increased to $2,100.
• April 2021: Further increase to $2,600.

This phased approach ensured a smooth transition for employers while maximizing coverage for employees.

2. Higher Compensation Limits

To ensure that compensation keeps pace with inflation and rising medical costs, the compensation limits were revised as follows:

• Medical expenses: Increased from $36,000 to $45,000.
• Death compensation: Raised from $204,000 to $225,000.
• Permanent incapacity compensation: Increased from $262,000 to $289,000.

These changes provide greater financial relief to workers and their families in the unfortunate event of serious injuries or fatalities.

3. Faster and Fairer Claims Process

The amendments introduced several measures to improve the efficiency and fairness of the claims process:

• Mandatory Reporting: Employers must report all work-related medical leave or light duties exceeding three days. Previously, only cases involving medical leave of more than three days needed to be reported.
• Pre-existing Conditions Considered Fairly: Compensation will now be determined based on the degree to which a work injury aggravates any pre-existing conditions. This ensures a fair assessment for both employees and employers.
• No-Fault Compensation System Maintained: Employees can continue to claim compensation under WICA without needing to prove employer negligence, maintaining accessibility and fairness in the system.

4. Compulsory Insurance for More Employees

Employers are now required to purchase work injury compensation insurance for non-manual employees earning up to $2,600 per month (previously capped at $1,600). This expansion ensures that a greater number of employees receive financial protection in case of work-related injuries.

5. Stronger Enforcement and Penalties for Non-Compliance

To encourage compliance and deter violations, stricter penalties were introduced:

• Employers failing to report workplace injuries or purchase mandatory insurance face higher fines and stricter enforcement actions.
• Repeat offenders may be barred from hiring foreign workers or face additional sanctions.
• The Ministry of Manpower has also introduced electronic monitoring and increased inspections to ensure adherence to WICA regulations.

Impact on Employers and Employees

For employers, these amendments mean greater responsibility in ensuring compliance with WICA, but also clearer guidelines on handling workplace injuries and claims. The increased salary threshold for insurance obligations means businesses must review and adjust their insurance policies accordingly.

For employees, these changes provide better financial security, quicker claims resolution, and a more transparent process for assessing compensation. Workers can now be assured of better protection, even if they are earning a higher wage than before.

Expert Opinions and Public Reactions

Industry experts and worker unions have largely welcomed these amendments, seeing them as necessary updates to reflect the evolving workforce and economic conditions.

Ms. Tan Li Mei, a legal expert in employment law, stated, "The WICA amendments are a step forward in ensuring that all workers, regardless of job type, have the necessary protection in case of workplace injuries. The increased compensation limits and stricter enforcement create a safer and more responsible work environment."

However, some small and medium-sized enterprises (SMEs) have expressed concerns over the potential increase in operational costs due to mandatory insurance requirements. To address this, the government has introduced advisory services and financial assistance programs to help businesses transition smoothly.

Conclusion

The 2020 amendments to the Work Injury Compensation Act have strengthened Singapore’s commitment to workplace safety and fair compensation. These changes reflect the evolving nature of employment and the need to provide robust protection for workers in an increasingly diverse and dynamic workforce.

For employers, it is crucial to stay updated with these new regulations to ensure compliance and avoid penalties. For employees, knowing their rights under WICA can help them navigate the claims process more effectively in the event of a workplace injury.

By reinforcing the safety net for injured workers while maintaining a balanced approach for employers, Singapore continues to uphold high standards in workplace safety and compensation.

References

1. Ministry of Manpower (MOM), Singapore – www.mom.gov.sg
2. Singapore Government Gazette – Official updates on legislative changes
3. News articles from The Straits Times, Channel NewsAsia, and Today Online – Coverage on WICA amendments and their impact
4. Workplace Safety and Health Council (WSHC) – Insights on workplace safety regulations