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You must buy work injury compensation insurance as soon as you employ people in the groups MOM names. The Ministry of Manpower (MOM) says this covers all employees doing manual work, whatever their salary, and non-manual employees earning S$2,600 or less a month, local or foreign. We read the MOM page on . Older articles still quote lower salary limits, so use the MOM figure.
Who must be covered?
| Employee | Insurance required? |
|---|---|
| Manual worker, any salary | Yes |
| Non-manual employee earning S$2,600 or less a month | Yes |
| Non-manual employee above that pay | Optional |
MOM counts the monthly salary without overtime, bonus, annual wage supplement, productivity incentive payment and allowances. Employers may insure other staff too. If you do not, you remain liable for a valid claim. For a small office company, the person doing admin on a modest salary is in scope, so do not assume a desk job lets you skip it.
What happens if you do not buy it?
MOM says failing to provide adequate insurance is an offence. The fine is up to S$10,000, jail of up to 12 months, or both. Because the liability for a claim stays with you, an accident without a policy costs you the claim and the penalty.
What must the policy cover?
The policy has to cover eligible claims under the Work Injury Compensation Act. MOM names medical leave wages, medical expenses, and compensation for permanent incapacity or death, and says the payout cannot fall below the statutory limits. We did not find the current limits on a MOM page we could read, so we do not quote them. Ask the insurer to show the limits in writing.
Who can sell it to you?
From , MOM requires policies to be issued by designated insurers that follow its compulsory terms. MOM keeps a directory of them. MAS licenses insurers and insurance brokers, and its Financial Institutions Directory lets you check that a broker is registered before you hand over details. A broker can compare designated insurers for you, which is where the form on this page helps.
How do you arrange it?
- Count your employees and sort them: manual, non-manual up to the pay limit, and the rest.
- Gather payroll figures, job titles and any sub-contractors.
- Ask for quotes from designated insurers, directly or through a broker.
- Send your details to the insurer at least 21 days before the policy should start, as MOM advises.
- Keep the policy with your payroll records. See payroll services if you want help.
MOM also says sub-contractors must have their own cover, and that a project policy does not cover some cases, such as injury in company transport or off the project site.
What about foreign workers?
Foreign staff count the same as local staff for work injury cover. Work Permit holders also need medical insurance of at least S$60,000 a year for inpatient care and day surgery, paid by the employer, which MOM treats as a separate requirement. Our pages on hiring a foreign employee and the foreign worker levy cover the other employer costs. CPF is a different matter again, see CPF for employers.
Does this replace other business insurance?
No. Work injury insurance only covers staff injured at work. Cover for customer claims, property or cyber incidents is separate. See business insurance in Singapore.
Independent guide, not MOM or an insurer
SingaporeCompanySetupGuide.com is an independent guide. We are not MOM and we do not sell insurance. Partners pay us when we pass your request to them. Fill in the quote form on this page and a suitable provider contacts you, with no obligation to buy.
Sources
- MOM, Work injury compensation insurance, https://www.mom.gov.sg/workplace-safety-and-health/work-injury-compensation/work-injury-compensation-insurance (who must be covered, S$2,600 limit, penalty, designated insurers, 21 days, sub-contractors)
- MOM, Medical insurance for migrant workers, https://www.mom.gov.sg/passes-and-permits/work-permit-for-foreign-worker/sector-specific-rules/medical-insurance (S$60,000 minimum)
- MAS, Insurance regulation, https://www.mas.gov.sg/regulation/insurance (insurers and brokers, Financial Institutions Directory)
