Singapore employers must provide two insurance covers by law: WICA work injury insurance, required for all employees doing manual work regardless of salary and non-manual employees earning S$2,600 a month or less; and Foreign Worker Medical Insurance with at least a S$60,000 annual claim limit for every Work Permit and S Pass holder. Everything else — group medical, group personal accident, group term life, dental and outpatient plans — is a voluntary benefit with no legal force.
That distinction is worth holding onto, because the two lists get discussed as one. Employers routinely buy generous benefits while leaving a statutory gap open, and just as routinely assume a benefit they offer is something they were required to offer.
Compulsory: the two covers you must have
- WICA work injury insurance. Required for all employees doing manual work at any salary, plus non-manual employees earning S$2,600 a month or less. Going without is an offence carrying a fine of up to S$10,000, imprisonment of up to 12 months, or both. For accidents from 1 November 2025, compensation runs to S$91,000–S$269,000 for death, S$116,000–S$346,000 for total permanent incapacity, and medical expenses up to S$53,000 or one year, whichever comes first. Note that WICA liability applies to employees you are not obliged to insure as well — if they are injured, the company pays the award itself.
- Foreign Worker Medical Insurance (FWMI). MOM requires medical insurance with at least a S$60,000 annual claim limit for every Work Permit and S Pass holder. The enhanced requirement has been fully in effect since 1 July 2025, with age-differentiated premiums and co-payment arrangements between insurer and employer above certain thresholds. FWMI is separate from and additional to WICA cover for the same worker.
If your business runs vehicles, third-party motor insurance is compulsory under the Motor Vehicles (Third-Party Risks and Compensation) Act — an obligation attached to the vehicle rather than to employment, but one that follows from putting an employee behind the wheel. Confirm current requirements with MOM and the relevant authority.
Commonly expected, but not required
These are benefits. No employer is compelled to offer them, and no penalty attaches to not offering them — but in a competitive hiring market they shape whether people accept an offer and stay.
- Group hospitalisation and surgical. The most common addition, sitting on top of what employees have through the national system.
- Group personal accident. Pays set amounts for accidental injury, often including accidents outside work — which is precisely where WICA does not reach.
- Group outpatient and specialist. Frequently offered by larger SMEs or where staff turnover is a live problem.
- Group term life. Common where employees are older or have dependants.
- Dental. Usually the last thing added and the first thing cut.
Group employee benefits are indicatively priced from around S$300–800 per employee a year, depending on the mix and the age profile of the team. Actual premiums depend on your workforce — get a quote.
The full picture in one table
| Cover | Status | Applies to | Consequence of not having it |
|---|---|---|---|
| WICA work injury insurance | Compulsory | All manual workers at any salary; non-manual employees earning ≤S$2,600/month | Fine up to S$10,000, up to 12 months' jail, or both — plus the company pays the compensation |
| Foreign Worker Medical Insurance | Compulsory | Every Work Permit and S Pass holder | Breach of work pass conditions with MOM |
| Third-party motor | Compulsory | Any vehicle the business operates | An offence under the Motor Vehicles (Third-Party Risks and Compensation) Act |
| Group hospitalisation and surgical | Voluntary | Whoever you enrol | None legally — a recruitment and retention issue |
| Group personal accident | Voluntary | Whoever you enrol | None legally |
| Group term life | Voluntary | Whoever you enrol | None legally |
| Outpatient, specialist, dental | Voluntary | Whoever you enrol | None legally |
| CPF contributions | Compulsory — but not insurance | Employees as determined by CPF rules | Enforcement by the CPF Board under its own rules |
Confirm the current position with MOM, the CPF Board and the relevant authority — thresholds and requirements do change.
Where employers most often go wrong
- Assuming group medical covers the WICA obligation. It does not, at any level of benefit. Only WICA insurance meets the WICA requirement.
- Insuring only the employees the law names. Legal minimum and full protection are different things: WICA liability extends to employees above the S$2,600 non-manual threshold too, and an uninsured award comes out of company funds.
- Forgetting FWMI is separate. A Work Permit holder needs both covers. Neither one discharges the other.
- Leaving part-timers and casual staff off the declaration. A short contract is still a contract of service.
- Buying cover after the start date. Cover needs to be in force from the first day an employee is working, not from whenever the paperwork gets done.
- Treating CPF as part of the insurance conversation. It is a separate statutory obligation with its own rules — check it with the CPF Board, not with your insurer.
Building a package without overspending
A sensible order of priority for a growing SME:
- Get the two compulsory covers unambiguously right, on an accurate headcount and an honest manual/non-manual split.
- Extend WICA cover to the employees you are not required to insure if the cost is modest — it usually is, relative to a six-figure award.
- Add group personal accident if your people face accident risk outside the strict scope of work injury.
- Add group hospitalisation and surgical when you are competing for staff, or when the team is large enough for a group rate to make sense.
- Review annually against headcount, age profile and what your competitors for talent are offering.
Speak to a licensed professional who can price the compulsory and voluntary parts together — packaging them frequently improves the terms on both.
Frequently asked questions
What insurance must employers provide in Singapore?
Employers must provide WICA work injury insurance for all employees doing manual work regardless of salary and non-manual employees earning S$2,600 a month or less, and Foreign Worker Medical Insurance with at least a S$60,000 annual claim limit for every Work Permit and S Pass holder. All other employee insurance — group medical, personal accident, term life, dental — is voluntary.
Is medical insurance compulsory for employees in Singapore?
Only for Work Permit and S Pass holders, who must be covered by Foreign Worker Medical Insurance with at least a S$60,000 annual claim limit. Group medical cover for Singaporeans, permanent residents and Employment Pass holders is a voluntary benefit, not a legal requirement.
Do I need to provide insurance for Employment Pass holders?
Employment Pass holders are covered by WICA like any other employee, and the compulsory insurance requirement applies to them on the same test as everyone else — manual work at any salary, or non-manual work at S$2,600 a month or less. FWMI is the requirement for Work Permit and S Pass holders; confirm the current position for EP holders with MOM.
Is group personal accident insurance mandatory in Singapore?
No. Group personal accident is a voluntary benefit and does not satisfy any statutory requirement — in particular it does not satisfy the WICA insurance obligation. Employers buy it because it covers accidents outside the scope of work injury, not because they must.
Do part-time and temporary staff need to be insured?
Yes, if they meet the test — a part-time or temporary worker under a contract of service doing manual work must be insured under WICA at any salary, and a non-manual one earning S$2,600 a month or less must be insured too. Leaving casual and part-time staff off the declaration is one of the most common compliance gaps.
Are CPF contributions a form of employee insurance?
No. CPF is a separate statutory obligation administered by the CPF Board, covering retirement, housing and healthcare savings rather than insurance against work injury or medical claims. Paying CPF does not reduce or replace any insurance requirement, and insurance does not reduce or replace CPF obligations — check the current CPF rules with the CPF Board.
Related cover & guides
Group Employee Benefits Insurance
Group life, medical, accident and outpatient cover for staff. A talent tool — not a substitute for WICA or FWMI obligations.
Read more →Is WICA the Same as Medical Insurance?
WICA, FWMI and group medical do three different jobs. Buying one does not discharge the obligation to hold another.
Read more →Hiring Your First Employee: Insurance You Now Need
Your first hire triggers WICA if they do manual work or earn ≤S$2,600/month — and FWMI if foreign. Insure before day one.
Read more →Foreign Worker Medical Insurance (FWMI): MOM Requirements
Mandatory medical cover for every Work Permit and S Pass holder — at least S$60,000 annual claim limit, separate from WICA.
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