The phrase “$5,000 security bond” worries a lot of first-time employers, who picture handing over five thousand dollars they will never see again. In reality, it rarely works that way. The security bond is a safeguard, not a payment — and for most families it costs only a modest insurance premium. Here is exactly what it is and what it means for you.
What is the security bond?
The security bond is a $5,000 guarantee you give to the Singapore Government as a condition of employing a Migrant Domestic Worker who is not a Singapore citizen or permanent resident. It is a binding promise that you will meet your obligations as an employer and that your helper will comply with the conditions of her Work Permit.
Crucially, it is a guarantee, not a deposit you spend. As long as everyone meets their obligations, the bond simply sits in the background and is discharged when it is no longer needed.
Who needs it — and who does not
- Required for: most non-Malaysian helpers — for example, those from the Philippines, Indonesia, Myanmar and other source countries.
- Waived for: Malaysian helpers. If you hire a Malaysian helper, you do not need to furnish the $5,000 security bond at all.
Key point: the bond is waived for Malaysian helpers but required for helpers of most other nationalities. This is one of several reasons your total upfront cost can differ depending on where your helper is from.
You usually don’t pay $5,000 in cash
This is the part that puts most employers at ease. You can satisfy the bond in two ways:
- A banker’s guarantee from a bank — this ties up funds and is less common for households.
- An insurance bond — you pay a small annual premium to an insurer, who provides the $5,000 guarantee on your behalf. This is what the vast majority of employers choose.
The insurance bond is typically bundled with the mandatory medical and personal accident insurance into one helper insurance package, so you handle everything in a single purchase. The premium is a fraction of $5,000 — check your insurer for current pricing, as it varies.
When can the bond be forfeited?
The bond can be wholly or partly forfeited if employer or helper obligations are breached. Common examples include:
- Failing to pay your helper’s salary on time;
- Your helper going missing or working illegally elsewhere;
- Not repatriating your helper at the end of employment when required; or
- Other serious breaches of Work Permit conditions.
Many breaches are entirely within your control to avoid. Pay on time, keep good records, ensure proper rest days, and arrange your helper’s return home when employment ends — and forfeiture should never become an issue. Note that for an insurance bond, the insurer may seek to recover any forfeited amount from you, so the protection of “good behaviour” still matters.
When is the bond released?
The bond is generally discharged once your helper’s Work Permit is cancelled and she has either left Singapore or transferred to a new employer in line with MOM’s rules, with all obligations met. Your agency or insurer will guide you through cancelling the bond so you are not paying for cover you no longer need.
How Ming Hwee helps
The security bond sounds intimidating but is straightforward once explained — and we explain it properly. As an MOM-licensed agency (Licence 12C6072), Ming Hwee arranges a compliant insurance bond bundled with your mandatory insurance, confirms whether the Malaysian waiver applies to your hire, and makes sure the bond is correctly discharged when the time comes. Have questions? Find your helper or message us on WhatsApp for clear, no-pressure guidance.
Related guides
- How Much Should You Pay Your Helper? A 2026 Salary Guide
- Maid Insurance in Singapore: What’s Mandatory and What’s Not
- The Foreign Domestic Worker Levy Explained (and the Concession)
Ready to hire? Get a free, no-obligation helper shortlist from Ming Hwee — Singapore’s trusted maid agency since 1983.
