What is a Foreign Worker Bond?
This is a mandatory security bond required by Singapore’s Ministry of Manpower (MOM) for employers hiring non-Malaysian Work Permit holders. The insurance provides a guarantee of S$5,000 per worker, protecting the government in cases where employment regulations are breached.
Why do you need a Foreign Worker Bond?
The Foreign Worker Bond serves as a financial guarantee to the Singapore government in case the employer or worker violates any laws or breaches the conditions of the work permit or security bond. The bond amount of $5,000 offers assurance that the government will not bear the financial burden if:
- The employer fails to repatriate the worker
- Either party breaches the terms of the work permit or security bond, or
- Employers fail to send worker back home when the work permit is expired or revoked
If this happens, the $5,000 bond can be taken by the government. This encourages employers to follow all MOM rules.
When to Buy Foreign Worker Bond
Purchase the security bond from an insurer before your worker arrives in Singapore.
The insurer will submit the necessary security bond details to MOM.
Once the security bond is approved, send the acknowledgement letter to your worker, as it will be required during arrival checks in Singapore.
* Do note that the immigration officer will deny entry if the security bond is not active when the worker arrives in Singapore
Frequently Asked Questions
about Foreign Worker Bond
Is the $5,000 bond refundable?
No, it’s a guarantee, not a deposit. You pay an insurance premium to secure bond coverage.
When will the employer be released from the bond obligation?
The employer will no longer be responsible for the foreign worker bond if the Work Permit is cancelled, the worker has returned home, and no bond conditions were broken. The bond will be released one week after the worker leaves Singapore.
What is the information required for submission?
- Company’s UEN Number
- Employee’s Foreign Identification Number (FIN)
- Company’s CPF Submission Number
- In-Principal Approval (IPA) Letter
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