If you employ workers in Singapore, there is a set of insurance obligations that come with the job. Not optional ones. Mandatory ones, backed by legislation and enforced by the Ministry of Manpower (MOM).
Most employers know they have these obligations in principle. Fewer have a clear picture of exactly what each one requires, how they relate to each other, and what happens if one of them is missing or incorrectly structured. This post covers all three, plainly.
The 3 products under what we call Workforce Essentials are:
- Work Injury Compensation (WIC) Insurance
- Foreign Worker Medical Insurance (FWMI)
- Foreign Worker Security Bond
Work Injury Compensation (WIC) Insurance
WIC insurance is required under the Work Injury Compensation Act 2019 (WICA) for two categories of employee.
First, all employees who perform manual work, regardless of their salary level. Manual work is broadly defined and includes any work involving physical labour, the use of tools or machinery, or direct handling of materials.
Second, all non-manual employees whose basic monthly salary is S$2,600 or below.
For employers with foreign workers on Work Permits, virtually all of those workers will fall into one of these categories. WIC insurance must be in place before the worker begins employment.
What does WIC cover? The policy responds to work-related injuries and occupational diseases. It covers the statutory compensation defined under WICA, which includes medical expenses up to S$53,000 per accident (effective 1 November 2025), medical leave wages, and lump-sum compensation for permanent incapacity or death.
WIC is a no-fault scheme. The injured worker does not need to prove negligence. The employer cannot avoid the compensation obligation by demonstrating that the worker contributed to the accident.
You can read more in our full guide to WICA and WIC insurance in Singapore.
Foreign Worker Medical Insurance (FWMI)
FWMI is a separate and distinct obligation from WIC. It is a condition of the work pass itself, not a statutory obligation under a separate Act, and it applies to all Work Permit holders and S Pass holders.
FWMI covers the worker's medical expenses arising from illness or injury — specifically inpatient hospitalisation, day surgery, and (where the policy includes it) outpatient treatment. The MOM minimum is S$60,000 per policy year (effective 1 July 2025 under Phase 2 of MOM's enhanced FWMI requirements; Phase 1 took effect from 1 July 2023).
FWMI is not the same as WIC. WIC responds to work-related injuries under a statutory compensation framework. FWMI responds to medical expenses whether or not the cause is work-related. A Work Permit holder hospitalised for dengue fever has an FWMI claim, not a WIC claim.
Both policies are required simultaneously. One does not substitute for the other.
You can read more in our full guide to FWMI for Singapore employers, and about the difference between FWMI and WIC.
Foreign Worker Security Bond
The foreign worker security bond is not an insurance policy. It is a financial guarantee to MOM that the employer will comply with the work pass conditions and bear responsibility for the worker during their stay in Singapore, including the cost of repatriation if required.
For most Work Permit holders, the bond amount is S$5,000 per worker. It is held by MOM and forfeited if the employer fails to meet their obligations — including failure to maintain the required WIC and FWMI cover.
The bond is typically arranged through a financial institution or insurer as a banker's guarantee or insurance bond. It is a condition of the In-Principle Approval (IPA) for the work pass and must be lodged before the IPA can be activated.
How the three obligations work together
These three obligations are separate in structure but linked in practice. A Work Permit employer must have all three in place.
The WIC policy responds if the worker is injured at work. The FWMI policy responds if the worker requires medical treatment, whether or not it is work-related. The security bond sits in the background as the employer's financial commitment to MOM.
A lapse in either the WIC or FWMI policy puts the employer in breach of the work pass conditions. The consequences include financial penalties, cancellation of the work pass, and potential debarment from hiring foreign workers in future. In the event of a WIC claim during a lapsed policy period, the employer bears the compensation liability directly.
Renewal of all three should be diarised well in advance of the expiry dates. Confirm at each renewal that the new policy is in force before allowing the existing cover to lapse.
If you would like TZY CO to review your current WIC, FWMI, and bond arrangements, or if anything has changed since these obligations were last reviewed, we would be glad to work through them with you.
Frequently asked questions
What are the three statutory insurance requirements for Singapore employers of foreign workers?
Employers of foreign workers in Singapore on a Work Permit are required to maintain three statutory obligations: Work Injury Compensation (WIC) insurance, which covers compensation for work-related injuries or occupational diseases; Foreign Worker Medical Insurance (FWMI), which covers inpatient medical expenses up to MOM's prescribed minimum limits; and the foreign worker security bond, which is a financial guarantee to MOM that the employer will meet their obligations under the work pass conditions. All three must be in place before the worker's In-Principle Approval (IPA) can be activated.
What happens if a foreign worker's WIC or FWMI lapses?
If either policy lapses during the worker's employment, the employer is in breach of MOM's work pass conditions. MOM may impose financial penalties, cancel the work pass, or bar the employer from hiring foreign workers in future. In the event of a workplace injury during a lapsed WIC period, the employer bears the full cost of compensation personally — there is no insurer to step in. Employers should set renewal reminders well ahead of expiry and confirm that both policies are reinstated before the existing cover ends.
This article provides general information only. It is not insurance advice. Policy availability, terms, conditions, and exclusions vary by insurer and product, and cover is subject to the full policy wording. Please contact TZY CO for advice on your specific situation.