Injured workers to get better assurance of compensation
Proposed changes to Work Injury Compensation Act will also improve insurance coverage for employees
New measures are in the works to improve insurance coverage for employees and give those injured on the job greater assurance of compensation - and much sooner after an accident.
The proposals are among possible amendments to the Work Injury Compensation Act, which requires employers to compensate staff injured at work.
One change would broaden coverage to insure more employees. Around 16,000 valid claims are lodged a year with almost all receiving compensation under the Act.
Since 1995, employers have to buy work injury compensation (WIC) insurance for those who do manual work and those non-manual employees in factories earning up to $1,600 a month. The WIC provides greater assurance in the event employers are unable to pay compensation.
The proposals, which are open for public feedback, would mean non-manual employees not working in factories and who earn up to $2,600 are also covered by WIC.
The Ministry of Manpower (MOM) said in a statement yesterday: "While the proposed amendments may lead to higher WIC insurance premiums, the incremental cost is estimated to be manageable (at less than 0.01 per cent of annual total labour cost), with greater impact to companies with more injury claims."
More than 24,000 uninsured workers will benefit from this expanded mandatory insurance coverage by April 2021.
The MOM also proposes to expand the scope of who gets compensation.
Only injured employees on medical leave are now compensated with their average monthly earnings.
But the ministry said it "intends to expand compensation to those placed on light duties as a result of work injury, such that they are no worse off than those given medical leave".
The Act will also lift maximum compensation levels by at least 10 per cent to keep pace with wage growth and rising medical costs.
An injured employee in the future will receive up to $45,000 within a year from the date of accident in medical expenses, up from $36,000 now.