How Much Is the Security Bond and Maid Insurance Required in Singapore

Hiring a migrant domestic worker in Singapore comes with two costs that often get mixed up: the security bond and maid insurance. One protects the government against breaches of employment rules. The other protects the worker, and in some cases the employer, when illness, injury, or accidents happen.

The short answer is this: the required security bond is S$5,000, while mandatory maid insurance must include at least S$60,000 in medical insurance coverage and S$60,000 in personal accident insurance coverage.

The actual amount an employer pays upfront is usually much lower than S$5,000, because most employers buy the bond through an insurer rather than placing the full sum in cash.

The real cost is usually the insurance premium, not the full bond amount.

The required security bond is S$5,000

Singapore requires most employers of migrant domestic workers to provide a S$5,000 security bond to the Ministry of Manpower, usually called MOM.

This bond is not meant to be a normal fee. It is a guarantee that the employer will follow the rules attached to hiring a domestic worker. These rules include proper employment conditions, medical care, salary payment, and repatriation when employment ends.

In practice, employers usually do not hand over S$5,000 in cash. Instead, they buy a security bond from a bank or insurer. The bank or insurer guarantees the bond amount to MOM, and the employer pays a premium for that service.

That means there are two figures to understand:

Item	Required amount	What the employer usually pays upfront
Security bond	S$5,000	A bond or insurance premium, often bundled into a maid insurance package
Medical insurance	At least S$60,000 per year	Included in the insurance premium
Personal accident insurance	At least S$60,000	Included in the insurance premium

The S$5,000 bond may be forfeited if the employer breaks MOM’s bond conditions. Forfeiture is not automatic for every problem, but the bond is a serious legal undertaking. Employers should read the conditions before the worker arrives, not after something goes wrong.

There is also an important exception. The security bond requirement generally does not apply to Malaysian domestic workers. For other migrant domestic workers, employers should assume the bond is required unless MOM confirms otherwise.

What maid insurance must cover

Maid insurance in Singapore is mandatory before a migrant domestic worker can start work. It is not just a nice extra. Employers must arrange the required insurance coverage and keep it valid throughout the employment period.

At minimum, maid insurance must include:

• Medical insurance

  At least S$60,000 per year for inpatient care and day surgery.

  
  

• Personal accident insurance

  At least S$60,000 coverage. This protects the worker, or the worker’s beneficiaries, if a serious accident leads to permanent disability or death.

  
  

Many insurance plans include more than the minimum. Common add-ons may cover outpatient treatment, hospital cash, wage compensation during hospitalisation, replacement help after termination, or costs related to repatriation. These benefits vary widely, so the cheapest plan is not always the best fit.

Mandatory insurance helps cover major medical and accident risks.

How much does maid insurance cost in Singapore

The law sets the required coverage amounts, but it does not set one fixed premium for every employer. The price depends on the insurer, the length of coverage, the benefits selected, and whether the policy includes the security bond.

Many employers buy a package that combines:

• Security bond guarantee

• Medical insurance

• Personal accident insurance

• Optional waiver of indemnity

• Optional outpatient or hospital benefits

• Optional repatriation or replacement cover

  
  

A basic package usually costs far less than the S$5,000 bond amount. In the market, premiums commonly fall in the range of a few hundred Singapore dollars for a typical policy period, but the exact price changes by insurer and coverage level.

The most common policy term is often linked to the work permit period. Employers should check the actual policy dates carefully. A gap in coverage can create problems with work permit approval or renewal.

The security bond is not the same as maid insurance

The security bond and maid insurance are often sold together, but they serve different purposes.

Security bond

Maid insurance

Bond claim risk

Insurance claim use

A S$5,000 guarantee to MOM that the employer will meet legal obligations.

Insurance coverage for medical treatment, accidents, and other insured events.

Mainly tied to breaches of work permit and employment rules.

Mainly tied to illness, injury, hospitalisation, or accident benefits.

This difference matters because paying for a bundled package does not remove the employer’s duties. Insurance may cover medical bills up to the policy limit, but the employer still has obligations around salary, rest days, living conditions, and repatriation.

It also matters when comparing policies. One plan may meet only the minimum requirements. Another may include higher medical coverage, outpatient benefits, or an indemnity waiver that reduces the employer’s financial exposure if the bond is forfeited under covered circumstances.

What happens if the bond is forfeited

The S$5,000 security bond can be forfeited if an employer breaches MOM’s conditions. Examples may include failing to repatriate the worker when required, allowing the worker to work illegally, or not meeting employment obligations.

Employers are also expected to take reasonable care to ensure the worker complies with work permit conditions. If a worker goes missing, the employer should report the matter promptly and follow MOM’s process.

Some insurance packages include a waiver of indemnity. This can be useful because it may protect the employer from having to reimburse the insurer for the bond amount in certain situations. The waiver is not a free pass. It will have terms, limits, and exclusions.

Read this part of the policy closely. If the wording is unclear, ask the insurer or agent to explain when the waiver applies and when it does not.

Clear employment arrangements reduce problems later.

What employers should check before buying a policy

A low premium can look attractive, but the cheapest policy may leave gaps. Before buying, check whether the plan meets MOM’s current requirements and whether it fits the household’s risk comfort.

Look closely at:

• The medical insurance limit

  It should meet at least the required S$60,000 per year.

  
  

• The personal accident cover

  It should meet at least the required S$60,000.

  
  

• The security bond arrangement

  Confirm that the insurer will issue the bond guarantee to MOM.

  
  

• The policy start date

  Coverage should begin before the worker arrives or before the work permit is issued, depending on the hiring stage.

  
  

• The claim process

  Check whether the insurer pays hospitals directly or reimburses after payment.

  
  

• The exclusions

  Pay attention to pre-existing conditions, outpatient limits, dental care, pregnancy-related exclusions, and non-work-related injuries.

  
  

• The waiver of indemnity

  If included, check what events it covers and the maximum amount.

  
  

For a first-time employer, a slightly fuller plan can be easier to manage than a bare-minimum policy. Medical costs in Singapore can rise quickly if hospitalisation is needed, so the headline premium should not be the only deciding factor.

A simple budget example

Here is a practical way to think about the cost.

If an employer hires a non-Malaysian migrant domestic worker, they should budget for:

1. S$5,000 security bond requirement

   
   

   Usually arranged through an insurer or bank, not paid as full cash upfront.

   
   

2. Maid insurance premium

   
   

   Paid to the insurer. This covers the required medical and personal accident insurance, and often the bond guarantee.

   
   

3. Optional extra coverage

   
   

   Higher medical limits, outpatient benefits, hospital income, or waiver of indemnity may increase the premium.

   
   

4. Other hiring costs

   
   

   These may include work permit fees, agency fees if using an agency, medical examinations, travel, and settling-in arrangements.

   
   

So, when people ask about How Much Is the Security Bond and Maid Insurance Required in Singapore, the clean answer is: S$5,000 for the bond, plus mandatory insurance coverage of at least S$60,000 medical and S$60,000 personal accident. The cash premium paid to an insurer will depend on the plan.

Planning the full hiring budget avoids surprise costs.

The key takeaway

The required security bond in Singapore is S$5,000 for most migrant domestic workers, while maid insurance must include at least S$60,000 in medical insurance and S$60,000 in personal accident insurance.

The employer usually pays an insurance premium rather than placing S$5,000 in cash. Still, the bond is a real obligation, and the insurance should be more than a box-ticking exercise.

Choose a policy that meets MOM’s rules, check the dates, read the exclusions, and understand the bond waiver if the plan includes one. A clear setup at the start can prevent expensive confusion later.