When hiring a foreign domestic worker (FDW) in Singapore, employers need to provide financial security for the FDW, for which insurance coverage is a necessary requirement. The amount of insurance required depends on the FDW’s work permit salary and the number of dependants.
Under the Employment of Foreign Manpower Act, the employer has to take up the necessary insurance coverage for their FDW. The following is the coverage required for employers in Singapore:
Work Injury Compensation Insurance: This type of insurance provides coverage for medical costs and compensation in the case of temporary or permanent disablement due to a work-related injury. This insurance also covers death benefits.
Bond of Security/ Security Bond: This type of bond is compulsory for all employers in Singapore and serves as a guarantee to the Ministry of Manpower (MOM) that the employer has financial resources to cover any potential losses or breaches related to the FDW’s employment.
The minimum amount of bond is SGD 5,000 and the premium payable is between SGD 18-SGD 30 (plus 3.5% GST) depending on the bond size.
- Medical Insurance: Employers are also required to purchase medical insurance for their FDWs and should make adequate provisions for regular medical check-ups.
The Medical Insurance Plan from the Ministry of Manpower (MOM) provides coverage for your FDW for a minimum sum of SGD 15,000 per annum, with the premium ranging from SGD 100- 250 (plus GST). Alternatively, employers can also purchase higher coverage plans from other insurers.
For more details about FDW insurance in Singapore, please refer to this webpage https://www.mom.gov.sg/foreign-manpower/employers-orientation/submission-and-renewal-of-work-permit/training-and-insurance.