Upcoming Changes to the Work Injury Compensation Act (WICA) in 2025

August 16, 2024

SINGAPORE—Under upcoming changes to the Work Injury Compensation Act (WICA), employers can expect higher payouts for work-related injuries and diseases. 

WICA Compensation Limits to Increase Significantly by November 2025

Appendix 1: Work Injury Compensation Limit from November 2025

According to the Ministry of Manpower (MOM) on February 8, the maximum payout for a workplace death will increase from $225,000 to $269,000 from November 2025. Similarly, the maximum payout for a permanent total incapacity will rise from $289,000 to $346,000.

Simplified Claims Process Under WICA

WICA provides compensation for work-related injuries or illnesses without needing to go through lengthy civil court proceedings, offering a simpler alternative. Claims can be made within one year of an accident.

Regular Reviews to Reflect Economic Changes

These limits, last updated in 2020, are being revised as part of MOM's regular reviews to keep up with rising wages and healthcare costs. "WICA provides compensation regardless of fault. Limits are set to reasonably protect employers from excessive payouts," noted MOM.

Improved Workplace Safety in 2023

In 2023, there were 36 workplace deaths, a 21.7% drop from 46 in 2022. Incidents that year included a construction worker falling 4m while waterproofing a roof in February. In April, two separate incidents saw one man fall while working on a new lift shaft and another injured by a falling forklift. 

Stricter Safety Measures and Training Initiatives

The lower fatality numbers in 2023 followed various measures to improve safety, like stricter penalties for breaches, implemented to address concerning trends in 2022. Further actions to reduce accidents, such as mandatory CEO safety training, will take effect in 2024.

Conclusion

These WICA changes demonstrate MOM's commitment to stronger worker protections and compensation that keep pace with economic changes. Employers should stay informed of updates and implement necessary safety practices to mitigate risks. 

Keep an eye out for more blogs for more information!

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