🔑 Singapore’s Work Injury Compensation Act (WICA) Gets a Major Update: What Employers and SME Owners Need to Know
🗓️ Effective 1 November 2025, Singapore’s Ministry of Manpower (MOM) will implement significant changes to the Work Injury Compensation Act (WICA), aimed at enhancing protection for employees while keeping pace with rising wages and healthcare costs. These updates carry important implications for employers—especially SME owners—who must ensure compliance and financial preparedness.
🔑 Key Changes to WICA Compensation Limits
The revised compensation limits mark a substantial increase across all major categories as shown in the picture below.
Changes to Work Injury Compensation Act 2025
These increases—approximately 17–19%—reflect MOM’s commitment to ensuring fair compensation amid inflationary pressures and evolving workplace risks.
🧠 What SME Owners and Employers Should Be Mindful Of
To stay compliant and protect both employees and business continuity, here are some practical tips:
1. Review and Update WICA Insurance Coverage
Ensure your insurance policies reflect the new compensation limits.
SMEs should work closely with insurers to avoid undercoverage, especially for high-risk roles.
2. Expand Coverage for Non-Manual Workers
Mandatory insurance now applies to non-manual employees earning up to S$2,600/month, regardless of industry.
This change, introduced earlier, remains critical for SMEs with administrative or support staff.
3. Report All Work-Related Injuries Promptly
Employers must report both medical leave and light duty cases to MOM.
Failure to report can result in penalties and delayed claims processing.
4. Compensate for Light Duties
Employees placed on light duties due to injury are entitled to compensation based on lost earnings.
This includes missed overtime and allowances, ensuring fair treatment and reducing under-reporting.
5. Strengthen Workplace Safety Protocols
With higher compensation liabilities, proactive safety measures are more important than ever.
Conduct regular risk assessments and training to reduce incident rates.
💬 Final Thoughts
The 2025 WICA amendments are more than just regulatory updates—they’re a call for employers to reinforce their duty of care. For SME owners, this means balancing cost management with robust employee protection. By staying informed and proactive, businesses can foster safer workplaces and build trust with their teams.
If you’d like help reviewing your WICA insurance strategy or updating internal protocols, do drop us an email and our experienced business consultant will be in touch with you shortly.
Read our next article on some of the tips in choosing the right WICA insurance.