Do you wanna know how WICA insurance is calculated? It might seem a little confusing, but it’s not as hard as it seems. We’ll break it down step-by-step so you can easily understand how it works.
First, let’s talk about what WICA insurance is. It’s like this mandatory policy in Singapore that’s supposed to cover you if you get hurt or sick because of your job. It covers stuff like doctor bills, lost wages, and other related costs. If you’re an employer, you have to provide this coverage for your employees. But how do you know how much you have to pay?
Understanding the Calculation
Basically, the amount you gotta pay for the WICA insurance depends on how much money your employee makes and how risky their job is. The riskier the job, the more you gotta pay. There are four different risk levels, and the higher the risk level, the more expensive the insurance is.
Let’s say your employee makes $50,000 a year and their job is at risk level 3. First, you gotta figure out the maximum amount of money they can make for their insurance to cover them. That’s called the maximum insurable earnings (MIE), and it’s currently set at $92,000. Then, you gotta multiply the MIE by the risk level, which is 0.28 for risk level 3. So, $92,000 x 0.28 = $25,760. That’s the annual premium for your employee’s WICA insurance.
What businesses need WICA?
Any business in Singapore with at least one employee is required to have WICA insurance. The insurance policy provides coverage to employees in case of work-related injuries or illnesses, and it’s designed to protect both the employee and the employer. This means that if an employee gets hurt or sick while performing their job, the WICA insurance will cover their medical expenses, as well as provide compensation for lost wages and other related costs.
So, whether you run a small business with just a handful of employees or a large corporation with thousands of workers, you need to have WICA insurance in place. The policy is mandatory, and failing to comply with the regulations can result in hefty fines and legal repercussions. It’s always a good idea to consult with a professional or your insurance provider to make sure you have the proper coverage for your business needs. You can also buy wica insurance online.
Getting your WICA insurance right is super important to make sure your employees are covered in case something happens at work. By following the steps we gave you, you can make sure your employees are protected and also keep costs low.