Work Injury Compensation Act 2019 — Part 3: AMOUNT OF COMPENSATION FOR PLATFORM WORKERS

Sushant Shukla

Part of a comprehensive analysis of the Work Injury Compensation Act 2019

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Comprehensive Analysis of Key Provisions in the Work Injury Compensation Act 2019: Compensation for Platform Workers

The Work Injury Compensation Act 2019 (WICA 2019) introduces a structured framework for compensating platform workers who suffer injuries or death arising from work-related accidents. This analysis focuses on the key provisions governing compensation calculations, definitions critical to understanding the compensation framework, and the rationale behind these statutory provisions. The provisions are primarily found in Sections 1 through 7 of the Act, which collectively establish the basis for lump sum and periodical payments, define essential terms, and ensure clarity and fairness in compensation awards.

Section 1: Compensation for Death Resulting from Work Injury

"(1) Subject to sub-paragraph (2) or (3) (as the case may be), where death results from a work injury, the amount of compensation payable must be paid in a lump sum, obtained by multiplying the AME of the deceased platform worker by the appropriate factor in the second column of Table A according to the age on the next birthday of the deceased platform worker at the time of the accident as specified in the first column of Table A:" — Section 1, Work Injury Compensation Act 2019

Verify Section 1 in source document →

Section 1 mandates that compensation for death caused by a work injury is to be paid as a lump sum. The amount is calculated by multiplying the Average Monthly Earnings (AME) of the deceased platform worker by an age-specific factor from Table A. This approach ensures that compensation reflects both the earning capacity of the deceased and the expected remaining working years, as approximated by the age factor.

Purpose: This provision exists to provide a fair and predictable lump sum payment to the dependents of the deceased, recognizing the loss of future income and support. The use of an age factor accounts for the economic impact of premature death, with younger workers attracting higher multipliers due to longer expected working life.

Section 2: Compensation for Permanent Total or Current Total Incapacity

"2. Where a platform worker has permanent total incapacity or current total incapacity resulting from a work injury, the amount of compensation calculated in accordance with the formula C + 0.25C must be paid in a lump sum, where C is — (a) subject to sub-paragraphs (b) and (c), an amount obtained by multiplying the AME of the platform worker by the appropriate factor in the second column of Table B according to the age on the next birthday of the platform worker at the time of the accident as specified in the first column of Table B:" — Section 2, Work Injury Compensation Act 2019

Verify Section 2 in source document →

Section 2 provides for lump sum compensation in cases where a platform worker suffers permanent total or current total incapacity. The compensation amount is calculated as C plus 25% of C, where C is derived by multiplying the AME by an age-specific factor from Table B.

Purpose: The additional 25% on top of C acknowledges the increased financial burden and loss of quality of life associated with total incapacity. The lump sum format provides immediate financial relief to the injured worker, enabling them to manage medical expenses and lifestyle adjustments.

Section 3: Compensation for Permanent Partial or Current Partial Incapacity

"3.— (1) Where a platform worker has permanent partial incapacity or current partial incapacity resulting from a work injury, the amount of compensation is to be calculated — (a) in the case of an injury specified in the Fourth Schedule — by multiplying C (mentioned in paragraph 2) by the percentage of loss of earning capacity caused by the injury as specified in that Schedule; and (b) in the case of an injury not specified in the Fourth Schedule — by multiplying C (mentioned in paragraph 2) by the percentage of loss of earning capacity caused by the injury (assuming that it is permanent) in relation to the relevant platform service the platform worker was providing at the time of the accident that resulted in the incapacity." — Section 3, Work Injury Compensation Act 2019

Section 3 addresses compensation for partial incapacity, whether permanent or current. The compensation is calculated by applying the percentage loss of earning capacity to the base amount C (from Section 2). For injuries listed in the Fourth Schedule, the percentage loss is predetermined; for others, it is assessed based on the injury's impact on the worker's earning capacity.

Purpose: This provision ensures proportional compensation that reflects the degree of impairment and its effect on the worker’s ability to earn. It promotes fairness by differentiating between varying levels of incapacity rather than a one-size-fits-all approach.

Section 4: Compensation for Temporary Incapacity

"4.— (1) Subject to sub-paragraphs (2) and (3), where temporary incapacity results from a work injury, the platform worker is entitled (for each day within a period of one year starting on the date of the accident that caused the work injury that the platform worker is on hospitalisation leave or medical leave granted due to the work injury) to periodical payments based on any one of the following amounts, as the case may be: (a) for the first 60 days of hospitalisation leave — the platform worker’s ADE; (b) for any subsequent days of hospitalisation leave — two-thirds of the platform worker’s ADE; (c) for the first 14 days of medical leave — the platform worker’s ADE; (d) for any subsequent days of medical leave — two-thirds of the platform worker’s ADE." — Section 4, Work Injury Compensation Act 2019

Section 4 entitles platform workers suffering temporary incapacity to receive periodical payments based on their Average Daily Earnings (ADE) during hospitalisation or medical leave. The payments are full ADE for initial days and two-thirds ADE for subsequent days within a one-year period from the accident date.

Purpose: This provision provides income support during recovery, mitigating financial hardship caused by temporary inability to work. The tiered payment structure balances adequate compensation with cost containment for platform operators.

Section 5: Compensation for Medical Treatment

"5.— (1) Any compensation payable by a platform operator for the medical treatment received by a platform worker in relation to the platform worker’s work injury is the lower of the following amounts: (a) the cost of medical treatment received by the platform worker within a period of one year after the date of the accident causing the injury; (b) the following amount per accident per employee: (i) if the accident takes place before 1 November 2025 — $45,000; (ii) if the accident takes place on or after 1 November 2025 — $53,000." — Section 5, Work Injury Compensation Act 2019

Section 5 caps the compensation payable for medical treatment to the lesser of the actual cost incurred or a statutory maximum amount, which increases after 1 November 2025.

Purpose: This provision controls medical compensation costs while ensuring that platform workers receive necessary treatment. The cap protects platform operators from excessive claims, promoting sustainability of the compensation scheme.

Section 6: Definitions and Formulas for Earnings Calculations

"6.— (1) In this Part — (a) a platform worker’s AME from the provision of a platform service is computed according to the formula A × 30, where A is the platform worker’s ADE; (b) a platform worker’s ADE from the provision of a platform service is computed according to the formula R × (100% − F), where — (i) R is the relevant daily earnings of the platform worker; and (ii) F is — (A) where the platform worker performed the task exclusively or primarily on foot, by public transport or by using a bicycle (not being power assisted) — 20%; (B) where the platform worker performed the task exclusively or primarily by using a personal mobility device, power-assisted bicycle or motorcycle — 35%; or (C) where the platform worker performed the task exclusively or primarily by using a motor vehicle other than a motorcycle — 60%; and (c) the relevant daily earnings of a platform worker is computed according to the formula , where — (i) E is the relevant earnings of the platform worker determined in accordance with sub-paragraph (3); and (ii) P is determined as follows: (A) where the platform worker was at work providing the platform service for less than 90 days immediately before the date of the accident — the number of days that the platform worker was at work providing that platform service; (B) in any other case — 90." — Section 6, Work Injury Compensation Act 2019

Section 6 provides detailed definitions and formulas essential for calculating compensation amounts. It defines AME as thirty times the ADE, which itself is adjusted from the relevant daily earnings by a factor F that accounts for the mode of task performance (e.g., walking, cycling, motor vehicle use). The relevant daily earnings are averaged over a lookback period of up to 90 days.

Purpose: These formulas ensure that compensation reflects the actual earnings and working conditions of platform workers. The adjustment factors (F) recognize differences in expenses and risks associated with various modes of transport or task execution, promoting equitable compensation.

Section 7: Definition of Relevant Platform Service

"7. In this Part, “relevant platform service”, in relation to a platform worker, means the platform service for which the platform worker has the highest earnings during the lookback period, having regard to the platform worker’s earnings for every platform service he or she provides." — Section 7, Work Injury Compensation Act 2019

Verify Section 7 in source document →

Section 7 clarifies that the "relevant platform service" for compensation purposes is the one that generated the highest earnings for the platform worker during the lookback period.

Purpose: This definition ensures that compensation calculations are based on the platform service most representative of the worker’s income, thereby avoiding under-compensation due to averaging across multiple services with varying earnings.

Definitions Critical to Understanding Compensation Calculations

The Act provides precise definitions to avoid ambiguity in compensation calculations:

Average Monthly Earnings (AME): Defined as the product of the Average Daily Earnings (ADE) and 30 days, reflecting a monthly income estimate — Section 6(1)(a).
Average Daily Earnings (ADE): Calculated by adjusting the relevant daily earnings (R) by a deduction factor (F) based on the mode of task performance, recognizing differences in costs and risks — Section 6(1)(b).
Relevant Daily Earnings: Computed by dividing the relevant earnings (E) by the number of days worked (P) in the lookback period, capped at 90 days to standardize the calculation — Section 6(1)(c).
Lookback Period: The period immediately preceding the accident date used to determine earnings, ensuring compensation reflects recent income — Section 6(2).
Relevant Platform Service: The platform service with the highest earnings during the lookback period, ensuring compensation is based on the most significant source of income — Section 7.

Additional definitions include:

Bicycle: A two-wheeled vehicle propelled solely by human power — Section 6(6).
Motor Vehicle: A vehicle propelled wholly or partly by a motor and intended for road use — Section 6(6).
Personal Mobility Device and Power-Assisted Bicycle: Defined by reference to the Active Mobility Act 2017, ensuring consistency across legislation — Section 6(6).
Task Earnings: Earnings from performing a specific task related to a platform service — Section 6(6).

Absence of Penalties for Non-Compliance in This Part

The provisions in Sections 1 to 7 do not specify penalties for non-compliance. This omission suggests that enforcement mechanisms or penalties may be addressed elsewhere in the Act or related regulations.

Implication: While these sections focus on compensation calculations and definitions, platform operators and workers must refer to other parts of the Act or subsidiary legislation for compliance obligations and penalties.

Cross-References to Other Legislation

"“personal mobility device” and “power-assisted bicycle” have the meanings given by section 2(1) of the Active Mobility Act 2017;" — Section 6(6), Work Injury Compensation Act 2019

Verify Section 6 in source document →

The Act cross-references the Active Mobility Act 2017 for definitions of "personal mobility device" and "power-assisted bicycle." This cross-reference promotes legislative coherence and ensures consistent interpretation of terms across different statutes.

Conclusion

The Work Injury Compensation Act 2019 establishes a clear, equitable framework for compensating platform workers who suffer work-related injuries or death. By defining compensation formulas based on earnings and age, adjusting for modes of task performance, and specifying lump sum and periodical payments, the Act balances the interests of injured workers and platform operators. The detailed definitions and cross-references enhance clarity and consistency, while the absence of penalty provisions in this Part indicates a focused scope on compensation rather than enforcement.

Sections Covered in This Analysis

Section 1: Compensation for Death Resulting from Work Injury
Section 2: Compensation for Permanent Total or Current Total Incapacity
Section 3: Compensation for Permanent Partial or Current Partial Incapacity
Section 4: Compensation for Temporary Incapacity
Section 5: Compensation for Medical Treatment
Section 6: Definitions and Formulas for Earnings Calculations
Section 7: Definition of Relevant Platform Service

Source Documents

For the authoritative text, consult SSO.

Written by Sushant Shukla

Topics

Singapore SSOStatutes Legislation