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Maximum compensation for workplace-related injuries to increase by about 19 per cent in 2025

Maximum compensation for workplace-related injuries to increase by about 19 per cent in 2025

Source: Straits Times
Article Date: 09 Feb 2024
Author: Roaslind Ang

With the changes, bosses will be liable for a maximum compensation payout of $269,000 in the event of a workplace death – up from $225,000 now.

Employers will face far higher compensation payouts when staff have workplace-related injuries under upcoming changes to the Work Injury Compensation Act (Wica).

With the changes, which will apply from November 2025, bosses will be liable for a maximum of $269,000 in the event of a workplace death – up from $225,000 now.

The maximum compensation for a worker suffering total permanent incapacity will also rise, from $289,000 to $346,000, the Ministry of Manpower (MOM) said on Feb 8.

The Act allows employees to make claims for work-related injuries or diseases without having to file a civil suit under common law, making it a low-cost and quicker alternative for seeking compensation.

Claims can be made up to one year from the accident.

The compensation limits, which were last increased in 2020, are being updated as part of regular MOM assessments to keep pace with wage growth and rising healthcare costs.

“Wica provides for compensation regardless of the party at fault. As such, compensation limits are capped to protect employers from large payouts,” it noted.

There were 36 workplace deaths in 2023, a 21.7 per cent drop from the 46 recorded in 2022.

The fatalities in 2023 included a construction worker who fell from a height of about 4m while doing waterproofing work on a roof in February that year.

Two workers died in April in separate incidents, with one man falling while working on a new lift shaft. The other died after a forklift fell on him.

The improvement in workplace fatality numbers in 2023 came after a slew of measures, including tougher penalties for safety breaches, were put in place to curb the worrying spate of deaths in 2022.

Further measures to reduce workplace accidents, including a compulsory safety course for chief executives, will kick in later in 2024.

Source: Straits Times © SPH Media Limited. Permission required for reproduction.

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