Employing a Work Permit or S Pass holder in Singapore triggers two separate insurance obligations: Foreign Worker Medical Insurance (FWMI) with at least a S$60,000 annual claim limit, which MOM requires for every Work Permit and S Pass holder, and work injury compensation (WICA) insurance, which is compulsory for all employees doing manual work regardless of salary and for non-manual employees earning S$2,600 a month or less. Alongside these, MOM imposes further employer conditions — a security bond for most Work Permit holders, medical examination, acceptable housing and levy obligations — which are administrative rather than insurance, but sit on the same pre-start checklist. All of it needs to be settled before the worker begins work, not after.
1. Foreign Worker Medical Insurance (FWMI)
FWMI is mandatory for every Work Permit and S Pass holder you employ. MOM's enhanced requirement — at least a S$60,000 annual claim limit per worker, with age-differentiated premiums and an insurer/employer co-payment structure above certain thresholds — has been fully in effect since 1 July 2025.
What it does: it pays for the worker's inpatient medical treatment and day surgery, whether or not the condition is work-related. That last point is what separates it from WICA, which responds only to work injuries and occupational diseases.
- Cover must be in place for the full duration of the work pass, including any period between passes where the worker remains your responsibility.
- The policy must be in the employing entity's name — not a related company's, not a manpower agent's, unless that arrangement is properly documented.
- You cannot pass the premium cost to the worker.
Requirements and limits do change. Confirm the current FWMI rules with MOM before you buy.
2. WICA work injury compensation insurance
WICA insurance is a separate statutory obligation and applies to local and foreign employees alike. You must insure all employees doing manual work regardless of salary, plus all non-manual employees earning S$2,600 a month or less. In practice, nearly every Work Permit holder falls inside the manual-work category, so WICA cover is effectively unavoidable when hiring one.
Going without is an offence: a fine of up to S$10,000, up to 12 months' imprisonment, or both. And if an uninsured worker is injured, the compensation is still owed — out of your own funds. For accidents from 1 November 2025, WICA compensation runs to S$91,000–S$269,000 for death, S$116,000–S$346,000 for total permanent incapacity, and medical expenses up to S$53,000 or one year, whichever comes first.
Many employers extend WICA cover to their whole workforce rather than tracking who falls inside the threshold each month. It is usually cheaper than the administration of getting it wrong.
3. FWMI and WICA compared
| FWMI | WICA insurance | |
|---|---|---|
| Who it must cover | Every Work Permit and S Pass holder | All manual-work employees, plus non-manual employees earning ≤S$2,600/month — local or foreign |
| What triggers a claim | Inpatient medical treatment and day surgery, work-related or not | Work injury or occupational disease |
| What it pays | Medical costs up to the annual claim limit (at least S$60,000) | Statutory compensation for death, incapacity and medical expenses |
| Set by | MOM as a work pass condition | The Work Injury Compensation Act |
| Consequence of not having it | Breach of work pass conditions, affecting your ability to hire foreign workers | Fine up to S$10,000 and/or up to 12 months' jail, plus liability for the full award |
Neither cover substitutes for the other. A worker injured on site may generate a WICA claim and an FWMI claim from the same incident.
MOM's other employer obligations
These are not insurance, but they sit on the same pre-start checklist and are where new employers most often stall. Requirements differ by pass type and worker nationality, and they change — treat this as a prompt to check MOM's current rules, not as a specification.
- Security bond. MOM requires employers to furnish a security bond for most non-Malaysian Work Permit holders. It is a banker's or insurer's guarantee in MOM's favour, not an insurance policy protecting you, and it can be forfeited if you breach the bond conditions. Check with MOM which workers it applies to and the current amount.
- Medical examination. Work Permit and S Pass holders generally must pass a medical examination by a Singapore-registered doctor within a set period of arrival before the pass is issued.
- Acceptable accommodation. Employers of Work Permit holders are responsible for providing housing that meets the applicable standards, and for declaring the address to MOM.
- Levy and quota. Foreign worker levies and the dependency ratio ceiling apply by sector. These affect whether you can hire at all, so check them before you make an offer.
- Settling-in programme and safety training. Certain sectors and first-time workers have mandatory orientation or trade-specific safety courses.
The timeline: what must be done before day one
Work backwards from the worker's first day. A workable sequence for a first hire:
- Before you make an offer. Confirm your sector quota and levy position with MOM, and get an indication of FWMI and WICA premiums so the true cost of the hire is in your numbers.
- At in-principle approval. Arrange the security bond where required, and line up accommodation that meets the standards. Insurers can usually quote FWMI and WICA at this stage.
- Before the pass is issued. Have FWMI in force with at least a S$60,000 annual claim limit, and WICA insurance in force covering the new headcount. Complete the medical examination within the required window.
- Before the worker starts work. Both policies active, in the correct entity name, with the worker included on the schedule. If your WICA policy is headcount- or wage-declared, notify your insurer of the addition — an unlisted worker can turn into an uninsured claim.
- Ongoing. Renew both covers without gaps, update declarations when headcount or wages change, and keep certificates where you can produce them quickly for MOM, a main contractor or a landlord.
The cost of all this belongs in your hiring budget, not your insurance budget. It is a recurring per-worker cost, not a one-off.
Frequently asked questions
What insurance do I need to hire a foreign worker in Singapore?
You need two separate covers: Foreign Worker Medical Insurance with at least a S$60,000 annual claim limit, which MOM requires for every Work Permit and S Pass holder, and work injury compensation (WICA) insurance, which is compulsory for all manual-work employees regardless of salary and for non-manual employees earning S$2,600 a month or less. Neither substitutes for the other.
What is the difference between FWMI and WICA insurance?
FWMI pays for a foreign worker's inpatient medical treatment and day surgery whether or not the condition is work-related, while WICA insurance pays statutory compensation for work injuries and occupational diseases. FWMI is a work pass condition set by MOM and applies only to Work Permit and S Pass holders; WICA is a statutory duty that applies to local and foreign employees alike.
When does foreign worker insurance need to be in place?
Both FWMI and WICA insurance must be in force before the worker starts work — in practice, arranged around the time the work pass is issued rather than after the first day. Employers commonly get quotes at in-principle approval stage so cover can be bound as soon as the pass is confirmed.
Is the security bond the same as foreign worker insurance?
No. The security bond MOM requires for most non-Malaysian Work Permit holders is a guarantee in MOM's favour that can be forfeited if you breach its conditions — it protects the government, not you or the worker. FWMI and WICA insurance are separate obligations that pay medical costs and injury compensation. Check MOM for which workers the bond applies to and its current amount.
Can I make my foreign worker pay for their own medical insurance?
No — FWMI is an employer obligation and the cost cannot be passed to the worker. The same principle applies to WICA insurance premiums, the security bond and the foreign worker levy. Treat all of them as a recurring per-worker employment cost when you price the hire.
Do S Pass holders need the same insurance as Work Permit holders?
S Pass holders need FWMI with at least a S$60,000 annual claim limit, the same as Work Permit holders. WICA insurance depends on the work, not the pass: it is compulsory if the S Pass holder does manual work, or earns S$2,600 a month or less. Other MOM conditions such as the security bond differ by pass type — confirm the current rules with MOM.
Related cover & guides
Foreign Worker Medical Insurance (FWMI): MOM Requirements
Mandatory medical cover for every Work Permit and S Pass holder — at least S$60,000 annual claim limit, separate from WICA.
Read more →Work Injury Compensation (WICA) Insurance
Compulsory cover for workplace injuries. Required for all manual workers and non-manual staff earning ≤S$2,600/month.
Read more →Hiring Your First Employee: Insurance You Now Need
Your first hire triggers WICA if they do manual work or earn ≤S$2,600/month — and FWMI if foreign. Insure before day one.
Read more →How to Make a WICA Claim
Step-by-step WICA claims process: reporting, MOM notification via iReport, medical assessment, compensation and disputes.
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