Short answer: Every migrant domestic worker except Malaysian helpers needs a S$5,000 security bond, given to the government as a banker's or insurer's guarantee. All of the maid insurance plans SGfi compares include it at no extra premium. If MOM forfeits the bond, the insurer pays and then recovers the money from you, unless you have a counter-indemnity waiver, which usually cuts your share to a S$250 excess.
What the security bond is
The bond is a pledge to the government that you and your helper will keep to the Work Permit conditions. It is not paid in cash. You provide it as a guarantee from a bank or insurer, and most employers get it bundled with their maid insurance. Per MOM's security bond page (last updated 2 February 2026), it is required for every migrant domestic worker except Malaysian helpers. MOM's renewal page also requires a new bond each time the Work Permit is renewed.
When MOM can forfeit it
MOM lists four situations in which the bond may be forfeited:
- You or your helper breach any Work Permit or security bond condition.
- You do not pay your helper's salary on time.
- You do not send your helper home when her Work Permit expires, is revoked or is cancelled.
- Your helper goes missing.
A missing helper is the case employers ask about most. MOM's employer guide states that the full S$5,000 can be forfeited if she is not found, and that only half, S$2,500, is forfeited where the employer made a reasonable effort to locate her. For breaches by the helper herself, MOM says employers can avoid liability if they can show they told her the Work Permit conditions and reported the breach as soon as they knew of it.
The bond is usually discharged about one week after your helper has left Singapore, once the permit is cancelled and no conditions were breached.
Counter-indemnity: who actually pays
When MOM calls a bond provided by an insurer, the insurer pays MOM first. Under the counter-indemnity in the policy, it then recovers the amount from you. So without a waiver, the employer still carries up to S$5,000 of risk, even though the insurer issued the guarantee.
A waiver of counter-indemnity limits how much the insurer can recover. Most insurers sell it as an optional add-on, and the waiver usually applies only when the breach was not the employer's fault.
| Insurer | Counter-indemnity waiver | Your excess if the bond is called |
|---|---|---|
| FWD | Waived by default, no rider needed | S$0 |
| MSIG | Optional rider, S$54.50 | S$250 |
| HL Assurance | Optional rider, priced at quote | S$250 |
| Great Eastern | Optional "Bond Protector" rider, priced at quote, 30-day waiting period | S$250 |
| AIG | Optional "Waiver of Security Bond" rider, priced at quote, added within 30 days | Removes the reimbursement obligation; no excess published |
Does the bond add to the price of maid insurance?
No, for every plan in SGfi's comparison. Each one includes the S$5,000 bond as a Letter of Guarantee, so asking for it adds nothing to the premium. Only the optional waiver adds to the price, and only where the insurer charges for it. SGfi's maid insurance comparison can add the waiver to the price where the insurer publishes a rider price, and lists each insurer's bond terms in its coverage table.
Common questions
Do I need a security bond for a Malaysian helper? No. MOM requires the S$5,000 bond for every migrant domestic worker except Malaysian helpers.
Can I get my S$5,000 back? There is nothing to get back, because the bond is a guarantee rather than a cash deposit. MOM usually discharges it about one week after your helper leaves Singapore, provided no conditions were breached.
What happens if my maid runs away? The bond can be forfeited in full. MOM's employer guide states that only S$2,500 is forfeited if you made a reasonable effort to locate her. Without a counter-indemnity waiver, the insurer recovers what it paid from you.
Is a waiver of counter-indemnity worth it? It turns up to S$5,000 of exposure into a S$250 excess on most plans, for a breach that was not your fault. Whether that is worth the rider price depends on the price, and FWD includes it at no extra cost.
All figures are based on publicly available information from MOM and the insurers as of October 2026. Terms may change without notice. This article is for educational purposes only and does not constitute financial advice.
SGfi is for educational purposes and does not constitute financial advice. Not affiliated with the CPF Board or MAS. Please consult a licensed professional before making financial decisions.