Insurance guide
Do I Need WICA Insurance in Singapore?
A plain-English guide for employers, based on MOM’s rules.
Appointed agent of Liberty Insurance
Updated 16 October 2026 · Written by Assureme Pte. Ltd., appointed agent of Liberty Insurance. General information, not advice.
The short answer
If you employ anyone doing manual work, or any non-manual employee earning $2,600 or less a month, yes, you must buy work injury compensation (WIC) insurance. This applies to local and foreign employees alike. The rule comes from the Work Injury Compensation Act (WICA) and is explained on the Ministry of Manpower (MOM) website.
Who counts
- Manual workers: all employees doing manual work, regardless of salary level.
- Non-manual employees: those earning $2,600 or less a month. For this test MOM excludes overtime, bonus, annual wage supplement, productivity incentive payment and any allowance from the salary figure.
- Everyone else: employees above the threshold are optional to insure, but if they make a valid claim you must pay the compensation regardless of whether you insured them.
If you are unsure how a role is classed, check MOM’s guidance or ask us and we will point you to the relevant page. We do not decide classification for you.
What happens if you do not insure
Failing to provide adequate insurance is an offence with a fine of up to $10,000, jail of up to 12 months, or both. Even where there is no prosecution, an uninsured employer is liable to compensate an injured employee directly, and WICA limits can be substantial. For accidents from 1 November 2025, medical expenses are capped at $53,000 and lump sums for permanent incapacity or death can run into six figures.
What the policy must be
Since 1 January 2021, WIC insurance must be issued by an MOM-designated insurer and comply with MOM’s compulsory terms. Liberty appears on MOM’s list of designated insurers. A policy that is not WICA-approved, or an insurer that is not designated, does not meet the requirement.
Contractors and sub-contractors
If you work on someone else’s project, you still need your own policy. MOM stopped new project WIC policies from 1 September 2020 and says employers must insure their own employees, even if a project policy exists. Read more on our work injury compensation insurance page and our contractor insurance overview.
What to do next
- List your employees, their roles and annual wages.
- Check which roles fall under the manual-work or $2,600 rules.
- Ask for a quote at least 21 days before the policy should start. See how to get a WICA insurance quote.
- Review each renewal so that headcount and wages are accurate.
Employing foreign workers? You also have a separate medical insurance duty, explained in our guide to foreign worker medical insurance vs WIC insurance.
Quotes are indicative and subject to Liberty Insurance’s terms, excess and exclusions. Cover starts only when Liberty issues the policy after a signed proposal and payment.
Frequently asked questions
Do I need WICA insurance if I only have one employee?
If that employee does manual work, or is non-manual and earns $2,600 or less a month, yes. MOM’s rule applies to employers regardless of headcount.
Do I need WICA insurance for foreign workers?
Yes. MOM requires you to insure both local and foreign employees who fall under the rule.
What is the penalty for not having WIC insurance?
An offence carrying a fine of up to $10,000, jail of up to 12 months, or both, according to MOM.
Do I need it for employees earning more than $2,600 a month?
Only if they do manual work. For other employees above the threshold it is optional, but you must compensate them for a valid claim whether or not they are insured.
Can any insurer issue a WIC policy?
No. Since 1 January 2021 the policy must be issued by an insurer designated by MOM and comply with MOM’s compulsory terms.
Is the $2,600 threshold based on my basic salary?
MOM’s test excludes overtime, bonus, annual wage supplement, productivity incentive payment and allowances from the monthly salary figure.
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