Foreign Worker Bond
Picture is for illustration purposes only
Foreign Worker Bond
Fulfil your Security Bond Requirements

In Singapore, all employers are required to pay a security bond deposit of $5,000 for each non-Malaysian Work Permit Holder – the bond is not required for S pass holders.

The serves as a reminder for the employer and foreign worker to act according to the Work Permit conditions. The bond is required for the employed worker to enter the country and also the renewal of their work permit .

This bond deposit can be covered with a Foreign Worker Bond policy.

Key Benefits of a Bond Policy*
No Upfront Deposit Needed

Replace cash deposit with Foreign Works Bond policy

Hassle Free

Bond policies are submitted to MOM automatically

Affordability

Convenient and affordable to purchase

* Terms and conditions apply

Ensure your Bond Policy suits your needs

Many insurers are providing foreign worker security bond insurance, each with its own coverage and key benefits.

As an insurance broker, we can help compare quotes to find the best Foreign Worker Bond policy for your needs.

We’ll take care of your bond requirements for you.

Critical Features Of Foreign Workers Bond

The foreign worker security bond insurance covers inpatient care, outpatient treatment and day surgery, including hospitalisation expenses for conditions that may or may not be work-related.

It is important to note that it also covers pre-existing medical conditions for the non-Malaysian worker. And should provide for any hospitalisation cost for work-related conditions locally or overseas.

Depending on the plan or coverage, there might be some variations between critical features. Contact us to find out more about the suitable plans and insurance requirements for your company.

Consult Us to find the right Bond Policy today
Frequently Asked Questions About Foreign Worker Bond In Singapore

A security bond protects your businesses. A good rule of thumb is that if you are told that you require a security bond for foreign workers, then you most likely do.

It is also sometimes defined as a three-party agreement. It legally binds a worker, an employer and an insurance company.

The bond serves as a reminder for the foreign worker to act by Singapore Law. If they fail to abide by the law, the insurance bond covers any resulting damages/losses.

If you are still unsure, do contact us for a free consultation to find out more about the requirements.

A security bond for foreign workers is a general rule of contract law to pay the government if either the employer or employee breaks the law or Work Permit conditions1. The foreign worker bond is usually a guarantee from an insurer or bank.

The Ministry Of Manpower (MOM) makes the security bond mandatory for each non-Malaysian Work Permit holder the employer hires. It is to be paid by the employer as a security deposit of $5,000 for each foreign worker. Many insurers are providing foreign worker security bond insurance, each with its coverage and key benefits.

The foreign worker security bond insurance covers inpatient care, outpatient treatment and day surgery, including hospitalisation expenses for conditions that may/may not be work-related.

It is important to note that it also covers pre-existing medical conditions for the non-Malaysian worker. And should provide for any hospitalisation cost for work-related conditions locally or overseas.

Depending on the plan or coverage, there might be some variations between critical features. Contact us to find out more about the suitable plans and insurance requirements for your company.

The bond must be bought before the worker arrives in Singapore. Employers can get the bond from either a bank or insurance company and ensure it is in effect from the day the worker arrives.

The employer may also login to WP Online 2, to check the status of the application and print out a copy of the security bond acknowledgment letter for the worker.

We understand that every nature of business is different, each company is unique and we can help in providing unbiased advice on the most suitable plans for your foreign workers.

The bond may be forfeited under one of the following circumstances:

  • Employer/Employee violates any of the security bond conditions
  • Employer fails to pay the employee on time
  • Employer fails to send the foreign worker home when the work permit is no longer in effect (expired, revoked or cancelled)
  • Employee goes missing in action 3

Any foreign worker can renew their work permit online before it expires (lead time of 6 to 8 weeks). Before renewing, they will need to check on their bond and medical insurance. For the security bond, they will have to acquire a new form 4, complete it, and have the form submitted back to the bank or insurance company before the permit renewal.

Subjected to the validity of the worker’s passport, security bond and employment period, the duration of the Work Permit is usually two years. The worker is also not allowed to work outside of the specified occupation.

Sources:
1 www.mom.gov.sg/passes-and-permits/work-permit-for-foreign-worker/sector-specific-rules/work-permit-conditions
2 www.mom.gov.sg/eservices/services/wp-online-for-businesses-and-employment-agencies
3 www.mom.gov.sg/passes-and-permits/work-permit-for-foreign-worker/notify-mom-of-changes#if-a-worker-goes-missing
4 www.mom.gov.sg/-/media/mom/documents/services-forms/passes/fw_sb_form.pdf