An employer is legally liable to provide compensation to his workers for his injury and to his dependants for his death due to an accident arising out of and in the course of employment. Such liability may arise out of either the Work Injury Compensation Act or out of Common Law. With effect from 1.4.2008, the Act has been amended to provide enhanced benefits to workmen. The limit of monthly wages of S$1,600 for applicability of the Act has also been withdrawn.

Work Injury Compensation Insurance is compulsory for all manual workers (regardless of their income) and all non-manual workers with monthly earnings not exceeding S$1,600. The Work Injury Compensation Insurance provides protection to employers against the liability as per the Act as well as at Common Law. WICA Insurance is availed either on an annual basis or for each project or contract.