This article was last updated on 2 September 2020.
By Fawwaz Baktee
The new Work Injury Compensation Act (WICA) will be expanded to cover 300,000 more workers, along with higher maximum mandatory insurance payouts by 2021.
Parliament passed these amendments on 3 September 2019. The new act will take effect in 2020 to allow employers and insurers time to adjust.
Minister of State for Manpower Zaqy Mohamad said: “After consulting unions, employers, insurers, NGOs and the general public, the new WICA 2019 offers a balanced set of changes that will benefit both workers and employers. WICA 2019 is important not only because it will provide faster and fairer compensation for work injuries, but because it should result in fewer injuries occurring in the first place. Strategically, it supports our vision to position Singapore among the world’s best for workplace safety and health.”
Under the amended law, all non-manual employees earning up to $2,600 will have compulsory insurance, regardless of where they work. Previously, only non-manual employees who work in factories, earning up to $1,600, were covered.
The salary threshold will be gradually raised to allow businesses to adjust. Employers must cover the insurance of all non-manual employees earning up to $2,100 by April 2020. They must then have insurance coverage for all non-manual employees earning up to $2,600 by April 2021.
Compensation limits will also be updated to keep pace with wage growth and healthcare costs. Since 2016, the maximum compensation for medical expenses was $36,000. The amended maximum compensation for medical will be adjusted to $45,000 in 2020.
Workers who are placed on light duties due to work injuries will from 1 September 2020 be compensated for lost earnings. Previously, employees on light duties may be paid significantly less than usual if they cannot do overtime or become ineligible for specific allowances.
The claims process will also be simplified. Previously, for those with permanently incapacitated would need to fill up an application form and apply for compensation withing a year from the accident. With the amendment, all serious work injuries reported to the Ministry of Manpower (MOM) will be processed automatically.
Meanwhile, employers will also have to report any instance of light duty or medical leave from 1 September 2020. This is to address the concern that some irresponsible employers may attempt to influence doctors to under-prescribe medical leave or light duties, according to MOM.
Companies with good safety records, on the other hand, can benefit from lower insurance premiums compared to those with a bad track record, according to Mr Zaqy. This comes after the introduction of a new licensing regime that requires companies to share policy and claims information with MOM.
The information will then be accessible to insurers for them to differentiate premiums based on risk profile and claims history.
"The amendments to WICA will undoubtedly enhance the protection of employees in the area of workplace safety. However, this is only the first half of the workplace safety and health (WSH) equation. WSH needs to be tackled holistically, and the Labour Movement stands ready to partner with companies to promote both workplace safety and workplace health. Together, we can achieve Total WSH for the benefit of all workers," said NTUC Assistant Secretary-General Melvin Yong.
