WORKMEN'S COMPENSATION ORDINANCE (Increase in benefit)

Mr Lim Soo Peng asked the Minister for Foreign Affairs and Minister for Labour whether he will consider introducing amending legislation for an upward revision of the scales of benefit in the Workmen's Compensation Ordinance.

Mr Sia Kah Hui (for the Minister for Foreign Affairs and Minister for Labour): Mr Speaker, Sir, workmen's compensation is regarded more as substitute income and represents partial indemnity for the loss of earnings suffered by a workman as a result of an industrial accident. The quantum of compensation is based on the earnings of a workman, including any privilege or benefit which can be estimated in monetary terms.

For computation of the amount of compensation payable, the monthly average earning for all classes of adult workers is estimated to be $200. In 1955 when the Workmen's Compensation Ordinance was enacted, such average monthly earning was estimated to be about $147.20 cents (based on a sample survey), while in 1968 it was about $180.60 cents. Therefore the average monthly earning of $200 is still equitable since the average monthly earning for workers still remains below $200.

As for temporary disablement cases which constitute about 90 per cent of the industrial accident cases reported to the Ministry, the injured workman is paid two-thirds of his monthly earnings or $130, whichever is the less. In some cases employers pay their injured employees full wages throughout the period of temporary disablement, though they are not obliged to do so.

At present we do not intend to introduce amending legislation for an upward revision of the scales of benefit. However, my Ministry will keep a close watch on the situation and consider introducing amending legislation when the need arises.

Mr Hwang Soo Jin (Jalan Kayu): According to the 1967 Report of the Ministry of Labour, there is an increasing tendency for claims to be brought under common law and not under the Ordinance. In view of this, will the Parliamentary Secretary consider making it compulsory for all out-of-court settlements under common law to be approved by the Commissioner, because some of the injured workmen are very often exploited by unscrupulous middle-men?

Mr Sia Kah Hui: Mr Speaker, Sir, when the need arises we shall surely look more carefully into the subject.

Mr N. Govindasamy (Telok Blangah): Mr Speaker, Sir, the Parliamentary Secretary has admitted that the average income calculated since 1953 has gone up by some $40 when a late review was made in 1968. On this admission itself, does the Parliamentary Secretary not feel that it is time for a revision of the Workmen's Compensation Ordinance?

Mr Sia Kah Hui: Mr Speaker, Sir, I have indicated that the injured workman is paid two-thirds of his monthly earnings or $130, whichever is the less, and I think that is roughly the correct figure for the moment.