If you are an employer or a migrant worker in Singapore’s CMP sectors (Construction, Marine, and Process), you may have heard about the term “Security Bond.”
But what exactly does it mean, and why is it important?
Let’s break it down in a simple way.
What is a Security Bond?
A Security Bond is a financial guarantee that employers must buy when hiring foreign workers under a Work Permit in Singapore.
It acts as a promise to the government that the employer will:
- Follow all employment rules
- Pay workers properly
- Ensure the worker leaves Singapore when required
How Much is the Security Bond?
For most non-Malaysian workers in CMP sectors, the bond amount is:
💰 SGD $5,000 per worker
👉 The insurance premium (the amount employers actually pay to the insurer) is usually around:
💵 SGD $100 – $120 per worker
Processing Time & Activation
Once the Security Bond is purchased:
⏳ It typically takes a few working days to be reflected in the MOM system
👉 Only after this, the Work Permit can be issued or renewed
⚠️ Important: Delay in bond activation = delay in Work Permit processing
Usual Coverage Period
📅 The Security Bond is usually valid for:
👉 Up to 26 months (2 years + buffer period)
This covers the full duration of the Work Permit and any necessary extension period.
Why is Security Bond Important?
The bond protects the government against risks such as:
- Worker overstaying illegally
- Employer not complying with MOM rules
- Worker going missing (absconding)
If any rules are broken, the government may forfeit (claim) the bond amount.
When is the Bond Forfeited?
The Security Bond can be forfeited if:
❌ The worker runs away
❌ The employer fails to send the worker home after pass expiry
❌ Work Permit conditions are violated
❌ False information is provided to MOM
Who is Responsible for the Security Bond?
👉 The employer is fully responsible for purchasing and maintaining the bond.
⚠️ Workers should NOT pay for the security bond
If anyone asks a worker to pay this, it is a red flag
How to Get a Security Bond?
Employers usually purchase the bond through:
- Insurance providers
- Authorized vendors / agencies
The process is simple and can often be completed online within a short time.
Common Mistakes to Avoid
⚠️ Not renewing the bond on time
⚠️ Using unverified vendors
⚠️ Not understanding MOM compliance rules
⚠️ Charging workers illegally
Final Thoughts
The Security Bond is a crucial requirement in Singapore’s CMP sectors.
It protects both the government and the overall employment system.
Employers must ensure full compliance, and workers should stay aware of their rights.
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