Maid Security Bond: What It Is & How It Works

Key takeaways

• The maid security bond is a mandatory S$5,000 financial guarantee required by the Ministry of Manpower (MOM) for every non-Malaysian Migrant Domestic Worker (MDW) employed in Singapore.

• It is arranged through a bank or insurance company and shows that you, as the employer, agree to follow MOM’s Work Permit rules.

• The bond may be forfeited partially or in full if either you or your helper breaches those conditions.

Hiring a MDW in Singapore comes with several MOM requirements, including the maid security bond. While it may sound like an insurance policy, the bond serves a different purpose.

It is a financial guarantee that helps ensure employers follow the required Work Permit conditions throughout the helper’s employment period. Let's dive into the details.

What the maid security bond covers

The security bond is a legal compliance pledge to the Singapore government, or a legal document that guarantees you will comply with Work Permit conditions. It does not pay out domestic helper claims to you; it’s something that holds you accountable as an employer.

Here's what it consists of:

The security bond does not cover your helper's medical bills, hospitalisation, or personal accidents. Those are separate compulsory requirements under MOM's insurance rules, typically fulfilled through a maid insurance plan such as Income’s Domestic Helper Insurance.

Check if your helper needs a security bond

The S$5,000 security bond applies to every non-Malaysian MDW. Malaysian helpers are the sole exception.

You cannot ask your helper to pay for the bond. The cost is entirely the employer's responsibility.

Get your maid security bond before your helper arrives

You must purchase the bond before your helper arrives in Singapore. If it is not in effect when she lands, the immigration officer will deny her entry. MOM cannot change the effective date retroactively.¹

The bond takes one of two forms:

• A banker's guarantee, purchased from any bank.

• An insurer's guarantee, purchased from an insurance company, usually bundled with a maid insurance package.

Most employers find it more practical to purchase it as part of a maid insurance package rather than separately through a bank.

4 steps to prepare the bond for your helper

1. Purchase the three requirements: security bond, medical insurance, and personal accident insurance, either as a package or separately.

2. Inform your bank or insurer to transmit the bond details to MOM. This takes up to three working days.

3. Log in to WP Online to verify the bond status before your helper's arrival date.

4. Print the security bond acknowledgement letter and send a copy to your helper.

Most employers purchase all three requirements together through an integrated maid insurance plan, like Income’s Domestic Helper Insurance, which bundles the security bond, medical insurance, and personal accident coverage into a single MOM-compliant package, with premiums from S$0.60 a day. 

What happens if the bond is forfeited

As an employer, you may have to pay up to S$5,000 if the bond is forfeited. The actual amount depends on the nature of the breach and MOM's assessment.¹ The table below outlines what you can expect across different scenarios.

Avoid these 4 maid security bond mistakes

MOM may forfeit the bond if any of the following occurs:

1. You or your helper violates any Work Permit or security bond condition.

2. Your helper's salary is not paid on time.

3. You fail to repatriate your helper when her Work Permit expires, is revoked, or is cancelled.

4. Your helper goes missing.

One important protection: If your helper violates a condition on her own, you will not be held liable provided you can show that you informed her of the conditions she must follow and reported the violation to MOM as soon as you became aware of it.

By default, a forfeiture exposes you to the full S$5,000, even in situations where the breach was not directly your fault.

3 conditions to ensure your maid security bond is discharged

MOM discharges the security bond once all three conditions below are met:

1. You have cancelled your helper's Work Permit.
2. Your helper has returned to her home country.
3. You have not breached any security bond conditions.

The bond is usually discharged within one week of your helper's departure. MOM will notify you by post. If you do not receive the discharge letter within a week, submit a request to MOM via the WP Online portal.

Protect your maid with Income's Domestic Helper Insurance

Meeting the security bond requirement is only part of your obligation as an employer. An integrated maid insurance plan covers the rest. Income’s Domestic Helper Insurance fulfils all MOM requirements in one package, with three plan tiers to suit different levels of coverage:

What the maid security bond means for you

The maid security bond is a legal obligation, not an insurance product. It protects MOM's interests by ensuring employers meet their responsibilities throughout the entire employment period. 

The more you understand about forfeiture and discharge, the less likely that S$5,000 ever becomes a real cost. For most employers, purchasing a bundled maid insurance plan that includes the security bond through the same insurer is the simplest way to meet MOM requirements and avoid any gaps in protection from day one.

Frequently asked questions (FAQs) about maid security bond in Singapore

1. Does the maid security bond cover my helper's medical bills?

No. The security bond is a legal guarantee to MOM, not a medical policy. MOM requires separate medical insurance of at least S$60,000 per year for inpatient care and day surgery, and personal accident insurance of at least S$60,000 per year.² These are typically bundled with a maid insurance plan.

2. Do I pay S$5,000 in cash upfront?

No. The bond is a guarantee, either a banker's guarantee from a bank or an insurer's guarantee from an insurance provider. You pay a premium for the guarantee, not the full S$5,000. If the bond is forfeited, the insurer pays MOM and recovers the sum from you.

3. What happens if my helper goes missing?

Your bond may be forfeited. Report the situation to MOM immediately and file a police report, then cancel her Work Permit within one week of knowing she is missing. If she is not found within one month from the date the Work Permit was cancelled, S$2,500, which is half of the S$5,000 security bond, will be forfeited.

4. Can I ask my helper to pay for the security bond?

No. MOM prohibits employers from passing the cost of the security bond to their helpers. It is solely the employer's financial obligation.

5. Does the maid security bond apply to Malaysian helpers?

No. Malaysian helpers are the only MDW nationality exempt from the S$5,000 security bond requirement.

6. Can I buy the security bond and maid insurance separately?

Yes. MOM permits employers to purchase the security bond and the compulsory insurance separately from different providers. Most employers find a bundled package more convenient and cost-effective.