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Calculate your Foreign Worker Bond premium:
A Foreign Worker Bond is a mandatory bond required by MOM when hiring Work Permit employees. Provide offers you the easiest way to purchase foreign worker bonds, affordably & quickly.
What are Foreign Worker Bonds, and what do they cover?
A Foreign Worker Bond is a type of security bond. Foreign Worker Bonds are legally required by MOM for Work Permit holders that you hire. The bond will cover you if you or your employee defaults on the Work Permit conditions set forth by MOM. Bonds are required to ensure that both companies and foreign employees abide by the labour regulations that MOM has stipulated.
What is the Foreign Worker Bond amount I need?
You must purchase a $5,000 Foreign Worker Bond for each foreigner you hire. This is the amount that is stipulated by MOM. You cannot purchase an amount less than this.
Also, you are not allowed to ask your worker to pay for the bond.
Which foreigners do I need to purchase Foreign Worker Bonds for?
You must purchase a Foreign Worker Bond for each non-Malaysian foreign worker you hire. This only applies to Work Permit (WP) holders. You don’t need to purchase a bond for S-Pass or Employment Pass (EP) holders.
We provide Foreign Worker Bonds for all nationalities, including but not limited to:
- China
- Bangladesh
- India
- Indonesia
- Philippines
- Myanmar
- Thailand
- Sri Lanka
- Laos
- And many more
Work Permit holders generally perform unskilled and semi-skilled roles. This includes roles like construction workers, cleaners, F&B staff, manual technicians, and more.
When should I purchase the Foreign Worker Bond?
You must purchase the Foreign Worker Bond before your hired worker arrives in Singapore.
Before making any arrangements to fly your worker in to Singapore, you should log in to MOM’s online Work Permit system to check whether your bond has been successfully registered with MOM. If your bond has not been successfully registered, your worker won’t be allowed into Singapore. You will then have to bear the cost of repatriating your foreign worker, and then arranging for them to travel back to Singapore again on another date. A quick check on MOM’s system first will save you lots of hassle, and money!
What actions can cause a Foreign Worker Bond to be forfeited?
It’s important that you comply with MOM’s regulations on maintaining your Work Permit. Otherwise, MOM may forfeit your bond. There may also be other penalties involved for employers who breach their Work Permit terms.
Your bond maybe forfeited if:
- You violate any conditions of the Work Permit
- You violate any conditions of the Foreign Worker Bond
- You pay your workers’ salaries late, or withhold worker salaries
- You don’t repatriate your foreign workers to their home country when their Work Permit has expired
- Your foreign worker goes MIA. If you file a police report and can show you invested a reasonable amount of effort into locating your worker, only 50% (i.e. $2,500) of your bond will be forfeited, per missing worker
Employers won’t be held liable for their workers’ violations (e.g. workers getting pregnant while in Singapore) if you can prove the following:
- You have informed your foreign workers of their Work Permit conditions, and their responsibility to abide by these terms
- You report a Work Permit violation to the relevant authorities when you become aware of it
Your Foreign Worker Bond will be forfeited if your foreign employee engages in restricted activities. Here is the list of activities that are not permitted:
- Cannot moonlight by working in another occupation, for another employer
- Cannot start their own business in Singapore
- Cannot live somewhere other than the address set out by you at the start their employment. If they wish to move, they must inform you of the change of address
- Fail to carry their original Work Permit on their person, and fail to produce it to a public officer when requested
- Cannot marry a Singapore citizen/PR, whether in or outside Singapore, without MOM’s official approval. This applies even after their Work Permit has expired
- Cannot become pregnant or give birth in Singapore while living here on their Work Permit, unless they are already married to a Singapore citizen/PR. This applies even after their Work Permit has expired
In order to avoid the $5,000 bond being forfeited, employers should carefully brief their foreign employees on observing the above conditions.
How does a claim on a Foreign Worker Bond work?
Foreign Worker Bonds carry a clause called “Counter Indemnity”. Counter Indemnity means that you must reimburse the insurance company if your bond is forfeited. This prevents businesses from acting irresponsibly by forcing them to have skin in the game.
If the employer or foreign worker violates their Work Permit conditions, MOM may forfeit your Foreign Worker Bond. When MOM forfeits the bond, the insurance company will first bear the cost of the bond payment ($5,000) to MOM. After the insurance company meets the bond call by MOM, the insurer will then proceed to recover this sum from you, under the Counter Indemnity clause.
When does a Foreign Worker Bond end?
Your Foreign Worker Bond liability will only end when:
- You cancel your employee’s Work Permit, and
- Your foreign employee has returned home, and
- You did not breach any of the bond conditions
You must fulfill all 3 of the above criteria before MOM will discharge your bond. Usually, bonds are discharged one week after the worker has left Singapore.
If you posted a cash collateral for the bond with your bank or insurance company, you will receive your collateral back at this juncture.
What other insurance do I need when hiring foreign workers?
You must purchase Foreign Worker Medical Insurance for all Work Permit holders. This insurance must have a minimum cover amount of $15,000. Foreign Worker Medical Insurance covers:
- Hospitalisation and Surgery
Provide is one of Singapore’s leading providers of Foreign Worker Medical Insurance. We can have your quote and policy issued rapidly, within 24 hours. It’s an affordable and hassle-free process.
If you are hiring a worker who earns <$2,600/month, OR who performs manual work, you must also purchase Work Injury Compensation Insurance. You can buy this coverage online in 3 mins, on our website.
Common examples of manual workers include:
- Construction/renovation workers
- Cooks/kitchen assistants/bakers
- F&B front-of-house workers
- Cleaning workers
- Air-con servicing workers
- Electrical workers
- Engineering workers
- Manual technicians
- Landscapers
What documents do I need to provide to purchase the bond?
In most cases, we only need a copy of your IPA (In-Principle Approval) letter from MOM. That’s it. For very newly registered businesses (e.g. <3 months old), the insurers may also require your ACRA profile. It’s a straightforward process.
Do I need to post a cash collateral when purchasing the bond?
The necessity of cash collateral depends on a few key factors:
- Age of company
- Nationality make-up of company directors
Typically, companies with at least 1 Singaporean director, and a couple years of operating history, don’t need to post any cash collateral. Having to post cash collaterals are a real drain on a company’s resources. We’ve helped numerous companies achieve 0% cash collateral, which is why many SMEs come to us to get their Foreign Worker Bonds.
How much do Foreign Worker Bonds cost?
Foreign Worker Bonds are highly affordable. There are 2 lengths of bonds:
- 14-month bonds: From $89/worker
- 26-month bonds: From $99/worker
This is a one-time premium (it’s not charged annually) and will provide coverage for the entire duration of the bond.
Provide is the best place to get your Foreign Worker Bonds. We help you save up to 25%, and can get you bonds in a quick and hassle-free manner.