Guide
Foreign Worker Security Bond in Singapore
· Last reviewed 23 October 2026
A foreign worker security bond is a S$5,000 guarantee an employer must buy for each non-Malaysian Work Permit holder before the worker arrives in Singapore. It is a banker’s or insurer’s guarantee to pay the government if the employer or the worker breaches the Work Permit or security bond conditions. It pays nothing to the worker, the employer cannot ask the worker to pay for it, and it is separate from WICA and from foreign worker medical insurance. We can arrange it together with the worker’s medical insurance and WICA.
Who needs the security bond?
MOM requires a S$5,000 security bond for each non-Malaysian Work Permit holder employed under the cited migrant-worker rules. It can be purchased from a bank or insurance company and the employer cannot require the worker to pay for it. The guarantee arrangements must be in place before the worker arrives as described by MOM.
Is S$5,000 the price of buying the bond?
No. It is the guarantee amount stated by MOM. The charge paid to a bank or insurer is a separate commercial term. Ask for the premium or fee, guarantee amount and any other conditions to be shown separately so the employer does not confuse the cost with the amount of the obligation.
Do not treat a guarantee as permission to disregard Work Permit conditions. Ask how any additional indemnity or waiver wording proposed by an insurer interacts with the employer’s responsibilities; the word waiver alone does not establish unlimited protection.
What should be confirmed before the worker travels?
| Check | Evidence to retain |
|---|---|
| Correct requirement | Applicable worker category and current MOM guidance |
| Employer details | Accurate legal entity and required identifiers |
| Worker details | Correct information for the guarantee process |
| Amount and dates | Guarantee amount, period and acceptance status |
| Submission | Confirmation that the required guarantee information has been received |
| Employee communication | Clear explanation that the employer bears the bond cost |
Why should medical insurance be checked separately?
A security bond does not describe hospital benefits or pay a worker’s GP bill as a medical policy would. Keep the bond confirmation and medical-insurance documents separately identifiable, even when one provider supplies a package. WIC insurance also has its own purpose.
What should happen when employment ends?
Check MOM’s current discharge and forfeiture conditions and the provider’s process. Do not assume a bond is discharged because payroll marked the employee as a leaver. Keep the official acknowledgement and reconcile any outstanding matters with the responsible administrator.
If the worker transfers or the employer changes, confirm what new guarantee or administrative action is required. This page is a planning guide and does not determine the outcome of a specific bond case.
What should you send for an initial enquiry?
Start with the employer’s requirement, relevant worker category and timing. Use the agreed secure process when identifying worker information is needed. Ask for the quotation and conditions before purchase, and retain the confirmed version with the employer’s records.
Questions
Is the security bond the same as WICA?
No. The bond guarantees compliance with specified conditions; WIC insurance addresses work-injury compensation obligations.
Can the bond cost be passed to the worker?
MOM’s cited guidance says the employer cannot ask the worker to pay for the security bond.
Sources for this page
- Security bond requirements for migrant workers
Relevant section: What is a security bond; when to buy; discharge and forfeiture
Page updated 5 October 2026. Primary source checked for the specific statements cited. Bene planning examples are editorial guidance, not rules issued by this publisher.