Maid Insurance Singapore 2026: Mandatory MOM Coverage Explained

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Quick answer

MOM requires every employer in Singapore to hold at least $60,000 per year in medical insurance and $60,000 per year in personal accident cover for their foreign domestic worker; a non-Malaysian MDW also requires a $5,000 security bond, typically arranged through your insurer. A standard 26-month policy costs $400 to $800 in total, and Stage 2 reforms from 1 July 2025 mean age-banded premiums and direct hospital payments now apply across all MOM-approved plans.

The numbers at a glance

What MOM mandates: the three pillars

Every employer of a foreign domestic worker in Singapore must maintain three forms of protection, all in force for the full duration of the MDW's work permit.

Medical insurance must provide at least $60,000 in annual claim coverage, covering inpatient hospitalisation and day surgery. Since Stage 1 reforms took effect on 1 July 2023, a co-payment structure applies to large claims: the insurer pays 75% of any claim amount above $15,000, and the employer pays the remaining 25%. The first $15,000 of a claim is covered in full by the insurer up to the annual limit. Policies must be renewed before the previous policy lapses — any gap in cover is itself a breach of MOM's conditions.

Personal accident insurance requires a minimum sum assured of $60,000 per policy year, covering accidental death and permanent disability arising from any cause at any time, including the MDW's rest days. A critical detail: the payout goes directly to the MDW or her nominated beneficiaries, not to the employer. The PA policy is not a tool for employers to recover costs — it is a protection for the worker's family.

The security bond of $5,000 applies to all non-Malaysian MDWs. Rather than placing cash with MOM, most employers fulfil this requirement through an insurer's Letter of Guarantee, which is typically bundled with the insurance policy. The bond is a financial undertaking: if the employer breaches certain key obligations — detailed in the section below — MOM may call on the bond. Malaysian MDWs are fully exempt from this requirement.

Stage 2 changes from 1 July 2025

MOM's Stage 2 MDW insurance reforms came into force on 1 July 2025 and affect all policies issued or renewed from that date. Employers renewing existing plans — or taking on a new MDW — should check three things.

Standardised exclusion clauses are now required across all MOM-approved insurers. Previously, each insurer could define its own list of exclusions, making plan comparisons unreliable. Under the new rules, the list of conditions that can be excluded from cover is capped and consistent, so a medical condition excluded under one plan will be excluded under all approved plans in the same way. This makes switching insurers at renewal genuinely comparable.

Age-banded premiums have replaced flat-rate pricing. MDWs aged 50 and below fall in one pricing tier, and MDWs above 50 are priced in a higher tier to reflect their greater average medical costs. If your MDW turns 51 during the policy period, confirm with your insurer when the higher rate takes effect — typically at the next renewal. Budget for a meaningful premium increase if your MDW is approaching or has passed this threshold.

Direct hospital payment by the insurer is now the standard. In the past, employers often had to pay the hospital first and then claim reimbursement — a cash-flow burden that could run to tens of thousands of dollars for a serious illness or surgery. Under Stage 2, the insurer settles the bill directly with the hospital for in-scope claims. Employers should still confirm that the hospital treating their MDW is on their insurer's panel or accepted under the direct-billing arrangement.

What to look for beyond the MOM minimum

The MOM minimum is a floor, not a recommendation. A $60,000 annual medical limit sounds substantial, but a week in a private hospital following surgery, or treatment for a serious condition such as cancer or a stroke, can easily exceed this. Buying only the minimum means you face 25% co-payment on any amount above $15,000 — and no cover at all once the $60,000 annual limit is exhausted.

Higher medical limits of $100,000 to $200,000 per year are available and cost relatively little more than the minimum. The incremental premium for stepping up from $60,000 to $150,000 is typically $50 to $100 per year — a reasonable hedge against catastrophic bills.

Wage replacement or outpatient benefit is offered by some comprehensive plans. If your MDW is hospitalised, you may incur costs for a temporary replacement helper. A daily hospitalisation benefit — commonly $20 to $30 per day — offsets some of this.

Repatriation costs are not covered by the MOM minimum. If your MDW needs to be flown home for treatment, or passes away, repatriation can cost several thousand dollars. Policies that include a repatriation benefit remove this exposure entirely.

Third-party liability covers you if your MDW accidentally causes injury to a third party or damages property while working. This is not required by MOM but is a standard add-on in most comprehensive plans.

Off-day accident cover ensures the PA protection extends to accidents on the MDW's rest day — the MOM minimum already requires this, but confirm that any top-up or enhanced PA benefit does not exclude rest-day accidents.

A comprehensive plan covering all the above typically costs $500 to $800 for a 26-month policy. The additional premium over the bare minimum is modest relative to the financial exposure it removes.

Security bond: what it is and when MOM can forfeit it

The $5,000 security bond is a financial guarantee — not an insurance product and not a payment to MOM. For non-Malaysian MDWs, it is almost always arranged as a Letter of Guarantee issued by your insurer, which is bundled into the insurance policy package. You do not hand over $5,000 in cash; instead, your insurer guarantees that it will pay MOM up to $5,000 if you breach your obligations as an employer.

MOM may call on the bond — meaning your insurer pays MOM and then recovers the $5,000 from you — in the following situations:

• Unpaid salary: failing to pay your MDW her full salary on time
• Overstay: allowing your MDW's work permit to lapse without renewal or cancellation, so that she becomes an overstayer in Singapore
• Failure to conduct the 6-monthly medical examination: MOM requires MDWs to undergo a medical check every six months; missing this is a bond-forfeiture risk
• Failure to repatriate: not purchasing a return air ticket home when the MDW's permit is cancelled or not renewed
• General permit conditions breach: any other serious violation of the work permit conditions as defined by MOM

For Malaysian MDWs, the security bond requirement does not apply, and no Letter of Guarantee needs to be arranged.

When to use the Maid Levy Calculator

Insurance and the maid levy are two separate employer obligations, but they are often confused or bundled together when households budget for the total cost of employing an MDW. Insurance is a one-time or annual premium; the levy is a monthly payment to MOM.

The standard maid levy is $300 per month for a general household. If you or an immediate family member residing with you is a Singapore Citizen with a physical or intellectual disability, the concessionary rate of $60 per month applies instead.

The Maid Levy Calculator lets you work out your annual levy cost, compare the standard versus concessionary rate, and factor the levy into your full employment budget alongside insurance premiums, salary, and food and accommodation costs. If you are deciding between hiring an MDW or other childcare arrangements, the levy calculator gives you the monthly and annual levy figures instantly so you can run a proper comparison.

Common pitfalls

Buying only the MOM minimum and underestimating co-payment exposure. The 75/25 co-payment rule above $15,000 is easy to overlook when purchasing the cheapest compliant policy. If your MDW requires surgery with a total bill of $40,000, the amount above $15,000 is $25,000. You pay 25% of that — $6,250 — out of pocket. Stepping up to a $100,000 plan with a broader insurer panel typically costs only $50 to $100 more per year.

Forgetting the security bond for a new non-Malaysian MDW. First-time employers sometimes focus on the insurance premium and miss that they need to arrange the security bond separately — or confirm it is bundled in the policy they are buying. Check the policy documents before the MDW arrives.

Age-band premium increases for MDWs turning 51. If your MDW is 50 and approaching her birthday, the renewal premium after Stage 2 will step up into the higher age band. Build this into your household budget rather than being caught off guard at renewal.

Insurance gaps during leave periods. The MDW's insurance must be maintained for the full duration of her work permit, including any period when she is on home leave in her home country. Do not cancel or let the policy lapse during her absence — the work permit remains in force and MOM's requirement continues.

Misunderstanding who the PA benefit pays. Personal accident payouts go to the MDW or her beneficiaries, not to the employer. Some employers mistakenly treat the PA policy as a form of employer protection. It is not. Its purpose is to protect the worker's family in the event of a serious accident or death.

Bottom line

Every Singapore employer of a foreign domestic worker must hold at least $60,000 per year in medical insurance and $60,000 per year in personal accident cover, and non-Malaysian MDW employers must also maintain a $5,000 security bond arranged as an insurer Letter of Guarantee. The MOM minimum is affordable — typically $400 to $800 for a 26-month policy — but stepping up to $100,000 to $200,000 in medical cover costs little more and eliminates the risk of a large co-payment on a serious hospital bill. Stage 2 reforms from 1 July 2025 have standardised exclusions, introduced age-banded premiums, and moved to direct insurer payment to hospitals, so review your policy at every renewal to make sure it remains competitive. Beyond insurance, the maid levy adds $300 per month to your cost — use the Maid Levy Calculator to factor the full picture into your household budget.

FAQ

What is the minimum maid insurance coverage required by MOM in Singapore?

MOM requires every employer to maintain at least $60,000 per year in medical insurance for their MDW, covering inpatient hospitalisation and day surgery. Employers must also hold personal accident insurance of at least $60,000 per year, which covers accidental death and permanent disability and pays out to the helper or her beneficiaries. Both policies must be in force for the entire duration of the MDW's work permit. Failure to maintain either policy is a breach of the employer's obligations and can result in the forfeiture of the $5,000 security bond.

How much does maid insurance cost in Singapore in 2026?

A standard 26-month MDW insurance policy typically costs between $400 and $800 in total, which works out to roughly $200 to $400 per year. Premiums vary depending on the insurer, the level of coverage above the MOM minimum, and the age of the MDW. From 1 July 2025, MOM introduced age-banded pricing: policies for MDWs aged 50 and below are priced in one band, and those for MDWs above 50 attract higher premiums to reflect greater medical risk. Shopping around across MOM-approved insurers before renewal is worthwhile.

Is a security bond required for all foreign domestic workers?

No. The $5,000 security bond is only required for non-Malaysian MDWs. Employers of Malaysian MDWs are exempt from the security bond requirement. For non-Malaysian MDWs, the bond is typically arranged through the insurer as a Letter of Guarantee — no cash deposit is placed with MOM. The bond is not an insurance premium; it is a financial undertaking that MOM may call on if the employer breaches certain key obligations, such as failing to pay the MDW's salary, allowing the MDW to overstay her permit, or neglecting to send her for a required medical examination.

What changed in MOM's maid insurance requirements from July 2025?

MOM's Stage 2 reforms took effect on 1 July 2025 and introduced three main changes. First, exclusion clauses in MDW insurance policies were standardised across all MOM-approved insurers, so employers can compare plans on an equal footing without hidden gaps. Second, age-banded premiums were introduced: MDWs aged 50 and below fall in one pricing tier, while those above 50 are priced in a higher tier. Third, insurers must now pay hospitals directly instead of reimbursing the employer, which removes the cash-flow burden on the employer when a large medical bill arises.

What happens if my MDW gets sick and her medical bill exceeds $15,000?

The MOM co-payment rule applies to any claim above $15,000. Your insurer covers 75% of the amount above that threshold, and you as the employer are responsible for the remaining 25%. For example, if the total bill is $25,000, the amount above $15,000 is $10,000. The insurer pays $7,500 of that and you pay $2,500, on top of the first $15,000 which the insurer covers in full up to the annual $60,000 limit. This is the main reason many financial advisers recommend buying a plan with a higher medical limit — $100,000 to $200,000 per year — so the co-payment exposure stays manageable even for serious illnesses.