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 insurance (WIC), Foreign Worker Medical Insurance (FWMI), and the Foreign Worker Security Bond. They are separate products that address different obligations, but they are almost always relevant to the same employer at the same time.
Work Injury Compensation Insurance (WIC)
What it is
Work Injury Compensation (WIC) insurance covers compensation payable to an employee who is injured at work or who contracts an occupational disease arising from their employment. It is required under the Work Injury Compensation Act 2019 (WICA).
Who needs it
WIC insurance is mandatory for two categories of employees:
All manual workers, regardless of salary level. If the job involves physical work, the obligation applies.
All non-manual workers earning S$2,600 or less per month.
If a non-manual employee earns above S$2,600, WIC insurance is not legally required for them, but many employers choose to extend it voluntarily because the underlying exposure does not disappear just because the statutory obligation does.
What it covers
If a covered employee is injured at work, WIC insurance pays: Medical expenses up to the applicable limits, compensation for temporary incapacity (the employee cannot work during recovery), compensation for permanent incapacity (where the injury leaves lasting effects), and in the worst case, death compensation to the employee's dependants.
The amounts are set by WICA and updated periodically by MOM. The current maximum compensation for permanent total incapacity is S$289,000. For death, it is S$225,000. These are not small numbers, and they come from the employer if the insurance is not in place or if the policy does not respond correctly.
The wages connection
WIC compensation is calculated based on the employee's actual monthly earnings, including regular overtime and variable pay. This matters because some employers declare a lower wage figure when arranging WIC insurance to reduce the premium. If a claim is made, the insurer assesses actual earnings.
Where the declared figure is materially lower than reality, the payout may be reduced proportionally, leaving the employer to make up the shortfall personally. Declaring accurate wages is not just good practice. It is the condition on which the policy actually works when needed. We covered this in more detail in CPF Wage Ceiling 2026 and Your WIC Insurance.
You can read more about our WIC cover on the products page.
Foreign Worker Medical Insurance (FWMI)
What it is
Foreign Worker Medical Insurance (FWMI) is a mandatory medical insurance policy that employers must hold for each S Pass and Work Permit holder they employ. It is a separate and distinct obligation from WIC insurance, and the two sit alongside each other rather than one replacing the other.
Who needs it
Any employer with S Pass holders or Work Permit holders. This includes workers in construction, marine, process, and services sectors, as well as domestic workers. The obligation is per worker, and it must be in place before the worker is deployed.
What it covers
FWMI provides a minimum level of inpatient medical coverage for the foreign worker, covering hospitalisation and surgical expenses arising from illness or injury, up to the MOM-mandated minimum of S$60,000 per policy year. The employer bears the cost of the premium. This is the floor, not the ceiling; some employers choose higher limits as part of their overall worker welfare approach.
What it does not cover
FWMI covers hospitalisation. It does not cover outpatient GP visits, dental, or the routine healthcare needs of a foreign worker outside of admission. Employers who want to extend broader medical coverage beyond the statutory minimum can do so through additional arrangements, but the statutory obligation is the inpatient minimum.
The July 2025 changes
MOM introduced enhanced FWMI requirements that took effect in July 2025, increasing the minimum annual coverage limit and tightening the conditions under which the policy must be maintained throughout the worker's pass validity. Policies arranged before the changes that have not been updated to reflect the new requirements may no longer meet the statutory minimum. If your FWMI was last reviewed before mid-2025, it is worth confirming that your current policies are compliant with the updated framework. We covered the July 2025 changes in detail in Foreign Worker Medical Insurance in Singapore.
You can read more about our FWMI cover on the products page.
The Foreign Worker Security Bond
What it is
The Foreign Worker Security Bond is a financial guarantee that an employer must provide to MOM as a condition of hiring certain categories of foreign workers. It is not an insurance policy in the conventional sense. It is a bond that the employer (or their insurer on their behalf) lodges with MOM, committing to a set of obligations around the worker's employment, conduct, and eventual repatriation.
Who needs it
The bond is required for Work Permit holders. It is not required for Employment Pass or S Pass holders. For most Work Permit categories, the bond amount is S$5,000 per worker. For workers from higher-risk sending countries or in higher-risk sectors, the bond amount may be higher.
What the bond covers
The bond is MOM's assurance that the employer will fulfil their obligations as an employer of a foreign worker. Those obligations include ensuring the worker is not involved in illegal activities, that the employer pays the worker's salary as required, that the worker is repatriated at the end of their pass, and that the employer bears the cost of medical treatment if the worker is injured and does not have other coverage.
If the employer fails to meet these obligations, MOM can forfeit the bond. The S$5,000 is paid to MOM, not to the worker directly. The employer then owes MOM the forfeited amount.
How it works in practice
In practice, most employers do not lodge S$5,000 in cash per worker with MOM. They purchase a foreign worker bond insurance policy, which is a product that the insurer provides on the employer's behalf. The insurer takes on the bond obligation, and the employer pays a small annual premium rather than tying up cash. If the bond is called, the insurer pays MOM and then recovers the amount from the employer.
You can read more about our Foreign Worker Bond on the products page.
How the three work together
For an employer with Work Permit holders, all three obligations apply simultaneously.
WIC insurance covers the compensation if the worker is injured at work. FWMI covers the worker's hospitalisation costs. The Security Bond covers the employer's obligations to MOM regarding the worker's conduct, welfare, and repatriation.
They address different risks and satisfy different statutory requirements. None of them replaces the others. An employer who has WIC and the bond but not FWMI is non-compliant with MOM's medical insurance requirement. An employer who has FWMI and WIC but not the bond cannot legally employ Work Permit holders.
For an employer with S Pass holders only, WIC and FWMI apply. The bond does not.
For an employer whose workforce is entirely local, only WIC applies to the relevant categories.
What to check
If you employ any workers in Singapore, the following questions are worth confirming answers to now rather than after a MOM audit or a workplace incident.
- Are all manual workers covered under WIC, regardless of salary?
- Are all non-manual workers earning S$2,600 or less covered under WIC?
- Are the wages declared on your WIC policy accurate, including regular variable pay?
- Do all S Pass and Work Permit holders have FWMI in place that meets the post-July 2025 MOM minimum?
- Do all Work Permit holders have a security bond in place, whether in cash or through a bond insurance policy?
If you are unsure about any of these, or if your workforce has changed since these obligations were last reviewed, we would be glad to work through them with you.
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. MOM statutory requirements are subject to change; please verify current requirements with MOM or a qualified adviser. Please contact TZY CO for advice on your specific situation.