Maid Security Bond Singapore: How to Cut Your $5,000 Liability to $250

A domestic helper takes a good deal of work off your plate—the daily chores, school runs, and childcare that eat into your time. But beyond her monthly salary, there are added costs to plan for, starting with a $5,000 security bond you're required to buy before she can even start work. And if certain conditions are breached, MOM can claim that full amount from you.

There's a way to bring that liability down to $250. Read on to find out how.

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1. What is a maid security bond in Singapore?

First of all, what is a maid security bond? According to the Ministry of Manpower (MOM), it is a “binding pledge to pay the government if either you or your helper breaches the Work Permit conditions”. And the bond is in the form of a banker’s or insurer’s guarantee.

The bond is compulsory for anyone who employs a domestic helper. It applies to each domestic helper you employ, so if you’re going to hire two, that means two security bonds. Only helpers who are Malaysian are exempt. 

And this bond is to be paid for by the employer, not your helper. You shouldn’t pass off the cost to her. 

Ideally, if you’re looking to employ a maid in Singapore, you need to buy the bond before she arrives, together with her medical and personal accident insurance. If the bond is not in effect by the time she arrives in Singapore, she will not be able to pass immigration. 

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ALSO READ: Maid Insurance Policies in Singapore 2026—What Are They and How Much Do They Cost?

2. When can your $5,000 security bond be forfeited?

The maid security bond will have to be forfeited if any of the following happens: 

• Employer or helper violates any of the Work Permit or security bond conditions (e.g. employer didn’t buy medical insurance or pay the monthly foreign worker levy, or the helper is found to be working for some other business)
• Helper’s salary is not paid on time
• Employer doesn’t send helper home when her Work Permit is expired, revoked or cancelled.
• Helper goes missing.

In the event one of these things happen, MOM will execute the financial guarantee and claim the $5,000 fee from you. In some cases, MOM may claim a partial amount from you if an employment or regulatory rule was breached—but there’s no guarantee you can avoid paying the full fee as this is subject to a case-by-case assessment. 

However, there are certain cases where you are not liable if the helper violates the rules—if you can prove that you have: 

• Informed her of the Work Permit conditions she must comply with.
• Reported a violation when you first become aware of it.

For instance, things that are out of your control like if the helper gets pregnant or is discovered to have some other form of business.

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3. What is a security bond protector (aka waiver of counter indemnity)?

So if you will be hiring a domestic helper, you have to get maid insurance for her, as per MOM laws. 

As an option to maid insurance, there’s this additional option to add the waiver of counter indemnity, which helps lower the liability on the $5,000 security bond to $250.

Some other insurers (e.g. Income, Etiqa and Maybank) have a different name for it and call it a security bond protector, but they basically mean the same thing.

How the waiver of counter indemnity works is that it limits your financial liability if MOM forfeits the bond. Instead of demanding the full $5,000 from you, the waiver lets you pay only $250, while the insurer absorbs the remaining $4,750. 

Here’s a scenario to help you better picture it: 

• Sarah hires a helper and purchases a maid insurance policy that includes the Waiver of Counter Indemnity rider (with a $250 excess).
• After 6 months, Sarah returns home from work to find her helper has packed her belongings and suddenly left. Sarah immediately files a police report and notifies MOM via the online portal within the required timeframe.
• The police can’t locate the helper and as a result, MOM forfeits the $5,000 security bond because the helper went missing and was not successfully repatriated.

How the waiver applies: 

1. MOM demands the S$5,000 bond sum from the insurer holding the guarantee.
2. The insurer pays MOM S$5,000 directly.
3. Under a standard policy without a waiver, Sarah would receive a bill from the insurer for S$5,000.
4. With the Waiver of Counter Indemnity active, Sarah pays only the S$250 policy excess to the insurer. The insurer waives the remaining S$4,750, protecting Sarah from a major out-of-pocket loss.

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4. How much does it cost to cut your liability?

So how much does it cost to actually cut your liability? Some insurance plans include the waiver of counter indemnity, while some have it as an optional add-on. 

Here are some of the lower-cost options currently available: 

*Information is accurate at time of publishing

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5. How to get maid insurance with security bond protection

Getting this waiver of counter indemnity or security bond protector is straightforward as you can get it as part of your maid insurance plan, either already included as part of the plan or an add on option. 

Getting the right maid insurance security bond add-on helps protect against unexpected $5,000 forfeitures, giving you peace of mind. 

Compare the various maid insurance plans in Singapore to find a policy that fits your budget now.

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