Singapore strengthens workers’ compensation: A ray of hope amid danger
Singapore’s Ministry of Manpower (MOM) has announced upcoming amendments to the Workers’ Accident Compensation Act (WICA) in a major step towards protecting the workforce. The proposed reforms, which are scheduled to take effect in November 2025, will increase compensation payments for workplace-related injuries and fatalities and promote a stronger safety net for employees and their families.
Paradigm shift in compensation
At the heart of these changes is increased responsibility for employers. For fatal workplace accidents, the maximum compensation amount will jump from the current $225,000 to $269,000. Similarly, the maximum compensation for total permanent incapacity will increase from $289,000 to $346,000. These adjustments reflect MOM’s commitment to align remuneration with wage growth and rising healthcare costs.
WICA is a low-cost and convenient alternative to civil litigation that allows employees to file claims for work-related injuries and illnesses. The Act’s compensation limits have the dual purpose of protecting employers from exorbitant payments while providing essential financial support to affected workers. Compensation claims can be filed within one year after the accident, ensuring workers have ample opportunity to seek redress.
Decreasing death toll: a positive sign
The driving force behind these changes is rooted in a steady decline in workplace fatalities. In 2023, Singapore recorded 36 workplace fatalities, a laudable 21.7% decrease from the previous year. This decrease can be attributed to strict safety measures and penalties for safety violations introduced following an alarming incident in which 46 people died in 2022.
Among the lives lost in 2023 was a construction worker who tragically fell from a height of approximately 4 meters while waterproofing a roof in February. Incidents like this highlight the urgency of strengthening safety nets for workers, especially those in high-risk industries.
Pledge to strengthen safety measures
To further reduce workplace accidents, Singapore has committed to additional safety measures. Safety training for top executives will become compulsory in 2024, with the aim of fostering a culture of safety from the top of companies. These initiatives, coupled with enhanced remuneration under WICA, demonstrate Singapore’s unwavering commitment to worker welfare and safety.
WICA’s upcoming changes are a testament to its dedication to Singapore’s workers as we navigate the evolving workplace safety landscape. Increasing compensation not only provides much-needed financial relief, but also serves as a poignant reminder of the value of human life and well-being in the face of industrial accidents.