Security Bond for Migrant Construction Workers in Singapore: What Employers Actually Need to Know
Singapore's population reached 6.21 million this year, and the growth was, in large part, a construction story. The Population in Brief 2026 report, released by the National Population and Talent Division on 25 September 2026, attributed much of the increase to more non-resident Work Permit (WP) holders in the construction sector, brought in to support projects such as Changi Terminal 5, the Marina Bay Sands expansion, and new housing and transport infrastructure.
More hires means more security bonds in play. For every non-Malaysian Work Permit holder a construction employer brings in, a $5,000 security bond must be in place before that worker lands, and it can be forfeited for reasons that have nothing to do with the worker running away. Here's what employers actually need to know.
Who Needs a Security Bond
You must buy a security bond for each non-Malaysian Work Permit holder you employ. It's a binding pledge, in the form of a banker's or insurer's guarantee, to pay the government if you or your worker breaches the Work Permit conditions or the security bond conditions.
The bond is $5,000 per non-Malaysian worker. Malaysian Work Permit holders are exempt entirely. And critically, you cannot ask your worker to pay for it, directly or through a salary deduction. The security bond sits on the same never-deduct list as the foreign worker levy and medical insurance. Our guide to Work Permit payslip deductions has the full list.
How to Buy a Security Bond
The bond must be bought, and in effect, before your worker arrives in Singapore. The process:
Buy the bond from any bank or insurance company. When you buy it, tell the bank or insurer which template to use: MOM_SB_MW if you're buying from a bank, or MOM_SB if you're buying from an insurer. Either way, the guarantee must name the Ministry of Manpower (MOM) as the beneficiary.
Instruct your bank or insurer to send the bond details to MOM. This takes up to 3 working days, so build it into your worker's arrival timeline rather than leaving it to the last minute.
Confirm the bond takes effect on your worker's arrival date.
Log in to WP Online to check the bond's status and print the acknowledgement letter, then send a copy to your worker.
Taking over a worker who's already in Singapore? You'll need to buy your own security bond before the new Work Permit is issued. The previous employer's bond doesn't carry over to you; it's tied to the employer, not the worker. Our guide to hiring an existing construction worker covers the rest of the transfer process.
If the security bond is not in effect when your worker lands, the immigration officer will not let them enter, and MOM cannot backdate the effective date to fix it after the fact. You'll have to send the worker home immediately, at your own cost, and start the process again.
5 Ways to Lose Your $5,000
The security bond isn't just protection against a worker who absconds. It can be forfeited for any of the following:
Trigger | What it means in practice |
|---|---|
Breaching Work Permit or security bond conditions | Either you or your worker breaching the conditions can trigger forfeiture |
Paying your worker's salary late | Late salary alone is a forfeiture trigger, independent of any other breach |
Not sending your worker home when the permit ends | If the Work Permit is expired, revoked, or cancelled, repatriating the worker is your responsibility |
Your worker goes missing | Report it to MOM as soon as you become aware |
A construction worker skips the Onboard programme | Every male non-Malaysian Work Permit holder in the Construction, Marine Shipyard and Process (CMP) sectors holding an in-principle approval (IPA) must attend the Onboard programme at the Onboard centre |
For the salary payment deadline, see our guide to migrant worker salary rights. For what the Onboard programme involves, see our MOM Onboard Programme guide.
If any of this feels like more exposure than you'd budgeted for, it's worth getting the arrival process right from day one. WhatsApp us at +65 8836 4624 and we'll walk you through it.
How Employers Protect Themselves
You won't be held liable for your worker's own violations if you can show two things: that you informed them of the Work Permit conditions they had to comply with, and that you reported any violation as soon as you became aware of it.
In practice, that means:
Keep a signed acknowledgement that your worker has been briefed on their Work Permit conditions.
Report a missing worker or any other violation promptly, not after the fact.
Calendar your Work Permit expiry dates so repatriation never slips past the deadline.
When You Get the Bond Back
The bond is discharged, and you're released from liability, only when all three of these are true: the Work Permit has been cancelled, the worker has returned home, and no security bond conditions were breached. If all three hold, MOM usually discharges the bond about one week after the worker leaves Singapore, and you'll be notified by post.
Security Bond vs. Levy Bond
The security bond is often confused with the levy bond, a separate MOM requirement. Most construction employers never need a levy bond. It only applies in specific situations: Work Permits revoked for unpaid levy, late levy payments at least 3 times in 12 months, a change of owner for a sole proprietorship, or certain new businesses employing migrant workers for the first time. When it does apply, it's $600 per higher-skilled or basic-skilled worker and $2,000 per unskilled worker, and it's paid on top of the $5,000 security bond, not instead of it. For levy rates and how to legally reduce your monthly bill, see our Work Permit Levy guide.
Hiring non-Malaysian workers for a construction project? We arrange the security bond as part of the Work Permit process, start to finish, so nothing holds up your worker's arrival.
WhatsApp us at +65 8836 4624.
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