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Overview of the Work Injury Compensation Act
The Work Injury Compensation Act (WICA) provides an expedient, low-cost compensation system that is an alternative to claiming for damages under the common law.
Unlike civil claims, compensation is generally payable under the WICA regardless of who is at fault, as long as an employee suffers an injury by accident arising out of and in the course of his employment. There is also a fixed formula in the Act on the amount of compensation to be awarded, and capped so that the financial liability on the employer is limited. The no-fault claims and prescribed amounts of compensation serve to facilitate and expedite claims under the WICA
The employee can choose not to claim under the WICA, but instead to pursue damages through the civil courts under the common law. However, once he decides to pursue his claim under the WICA, he will generally no longer be able to exercise his option to seek damages from his employer under common law.
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Who Can Claim Work Injury Compensation?
Employees who sustain injuries or died in a work-related accident are entitled to claim work injury compensation. Employees who contracted occupational diseases arising out of their work can also claim compensation under the Work Injury Compensation Act.
The Act covers all employees engaged under a contract of service or apprenticeship, regardless of their level of earnings.
Self-employed persons, independent contractors, domestic workers, members of the Singapore Armed Forces, officers of the Singapore Police Force, the Singapore Civil Defence Force, the Central Narcotics Bureau and the Singapore Prison Service are not covered by the Work Injury Compensation Act.
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When Is Work Injury Compensation Payable?
Compensation is payable when an employee suffers personal injury by accident arising out of and in the course of his employment. An accident arising in the course of an employee's employment (i.e. during working hours or while on official duties) is regarded as having arisen out of that employment, unless there is evidence to prove otherwise.
Compensation is also payable under the following circumstances:
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An employee meets with an accident while traveling as a passenger to and from his place of work in a vehicle operated by or on behalf of his employer and the vehicle is not a public transport.
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An employee who is residing in Singapore and employed by an employer in Singapore, meets with an accident in a place outside Singapore where he is required to work.
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What Are The Compensation Benefits?
The compensation benefits mentioned in this section are applicable to accidents that happened on and after 1 April 2008. The compensation benefits under the previous Workmen's Compensation Act will apply to accidents that happened before 1 April 2008.
Under the Work Injury Compensation Act (WICA), an injured employee is entitled to claim medical leave wages, medical expenses and compensation for permanent incapacity or death, if applicable.
Employers are liable to pay work injury compensation as follows:
These include:
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full pay up to 14 days for outpatient medical leave;
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full pay up to 60 days for hospitalization leave; and thereafter
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two-thirds of salary is payable up to a maximum period of one year following the date of accident.
Public holidays, rest days and non-working days should be excluded from the number of days of medical leave granted to the employee. For public holidays, while these are not granted as paid medical leave under the WICA, the injured employee may be paid for the public holidays as his entitlement under the Employment Act.
Note: Employers are required to pay medical leave wages to the employees not later than the same day as earnings would have been payable.
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Medical expenses incurred within one year from the date of the accident, or up to a cap of $25,000, whichever is reached earlier.
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Within these limits, employers will be responsible for all the medical expenses incurred for treatment by any Singapore-registered medical practitioner or in any approved hospital. Employers are liable to pay such medical expenses directly to the hospital.
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Medical expenses include the cost of medical consultation fees, treatment and expenses, medical report fees (for the initial assessment of the extent of injury suffered by the employee), the costs of medicines, artificial limbs and surgical appliances as certified by the medical practitioner.
Note: As the injured employee has to bear the excess medical expenses beyond such limits if he chooses to claim for compensation under the WICA, he may wish to consider the alternative of seeking damages from his employer at the civil courts. By doing so, he can decide to seek for the recovery of the full medical expenses incurred. The injured employee should not file a work injury compensation claim with the Ministry of Manpower if he decides to file a civil claim.
Compensation payable = [employee's monthly earnings] x [age multiplying factor] x [% loss of earning capacity]
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The compensation amount payable is subjected to a maximum and minimum limit as follows:
Maximum limit = $180,000 x [% loss of earning capacity]
Minimum limit = $60,000 x [% loss of earning capacity]
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An additional 25% of the compensation amount is awarded if an injured employee suffered permanent total incapacity (i.e. 100% loss of earning capacity).
Compensation payable = [employee's monthly earnings] x [age multiplying factor]
The compensation amount payable to the dependents of a deceased employee is subjected to a maximum and minimum limit as follows:
Maximum limit = $140,000
Minimum limit = $ 47,000
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Who Are Required To Purchase Work Injury Compensation Insurance?
Employers are required to continue to purchase insurance for employees who are already covered under the Act prior to 1 April 2008 (i.e. manual workers regardless of their level of earnings and non-manual workers with monthly earnings of $1,600 or less), unless they have been specifically exempted. Employers who fail to do so would have committed an offence.
For employees who are newly covered under the Act (i.e. non-manual employees earning above $1,600 a month), the employers have the flexibility to decide whether or not to buy insurance for these newly-covered employees. Nonetheless, employers will be required to pay compensation (including medical leave wages and medical expenses) in the event of a valid claim, even if they do not buy insurance.
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