Tag: marine

Must A Company Buy Security Bond For All Foreign Workers?

In Singapore, employers must purchase security bonds for certain foreign workers based on their nationality. The key details are as follows:

  1. Foreign Domestic Workers (FDWs): Employers must buy a security bond for all FDWs, regardless of their nationality. This bond is typically valued at S$5,000.
  2. Work Permit Holders (Non-Domestic Sectors): Employers must also purchase security bonds for Work Permit holders from non-traditional source (NTS) countries and the People’s Republic of China (PRC). These sectors include construction, manufacturing, marine, process sectors, and services.

Non-Traditional Source (NTS) Countries:

The NTS countries for which security bonds are required include:

  • Bangladesh
  • India
  • Indonesia
  • Myanmar
  • Philippines
  • Sri Lanka
  • Thailand

People’s Republic of China (PRC):

  • Work Permit holders from the PRC working in the construction, manufacturing, marine, process, and services sectors also require security bonds.

The security bond amount is typically S$5,000 per worker. This bond acts as a financial guarantee to the Singapore government that the employer will comply with all the regulatory and contractual obligations, including repatriating the worker when necessary. If the employer breaches any conditions, the bond amount may be forfeited partially or in full.

Only Work Permit holders from Malaysia do not require a security bond. This exemption applies to Malaysian workers across various sectors, including construction, manufacturing, marine, process, and services sectors, as well as for Malaysian Foreign Domestic Workers (FDWs).

The exemption is due to the strong bilateral ties and agreements between Singapore and Malaysia, which simplify employment processes for Malaysian nationals.

Anymore Insurance To Buy after Getting The Security Bond?

All foreign workers are also required to have certain types of compulsory insurance to ensure their well-being and to comply with local laws. The key types of compulsory insurance for foreign workers include:

  1. Medical Insurance (FWMI): Employers must purchase and maintain medical insurance for each Work Permit and S Pass holder. This insurance must cover at least S$60,000 per year for inpatient care and day surgery.
  2. Work Injury Compensation Insurance: Under the Work Injury Compensation Act (WICA), employers are required to buy work injury compensation insurance for:
    • All manual workers, regardless of salary level. All non-manual workers earning less than S$2,600 a month.
    This insurance covers medical expenses, lost wages, and compensation for permanent incapacity or death due to work-related injuries.

Employers must ensure these insurance policies are in place to protect the health and safety of their foreign workers, and to comply with Singapore’s legal requirements.