Foreign Worker Medical Insurance
In accordance to the Employment of Foreign Manpower Act, every business entity shall buy and maintain medical insurance for each migrant worker that they employed. In this article, we’ll dissect the detail of this insurance which commonly referred as FWMI.
Who should be insured?
- All foreign worker holding Work Permit (WP) or S-Pass
What should it cover?
- Minimally, it shall cover any inpatient care and day surgery, including hospital bills for conditions that may not be work-related for up to S$60,000/year
- Minimally, it shall have 75% insurer and 25% employer co-payment arrangement for the above medical related expenses beyond S$15,000
Would a business entity responsible for the medical expenses of their foreign workers that exceed the insurance benefit limit?
- Yes, under the Conditions of Work Permits, employers are required to bear the costs of the upkeep and maintenance of their foreign workers, including the provision of medical treatment.
Would a business entity allowed to recover part of the medical fees incurred by these foreign workers from the foreign workers?
- Yes, a business entity may have a co-pay arrangement with the Work Permit holder (excluding migrant domestic workers) for their medical bills, only if all of the following are met:
- The co-pay amount is reasonable and does not exceed 10% of the worker’s fixed monthly salary.
- The duration of co-payment does not exceed 6 months (for every 2 years of employment).
- The co-payment option is explicitly in the employment contract or collective agreement and has the worker’s full consent.
What penalty would the business entity face if they fails to purchase the medical insurance requirement?
- Employers who fail to purchase medical insurance are in contravention of the Conditions of Work Permits/S Pass. They shall be guilty of an offence and shall be liable on conviction to a fine not exceeding $5,000 or to imprisonment for a term not exceeding six months, or both.
If a business entity has an Employee Benefit Medical Insurance for every employees in place, could this policy be used in lieu of FWMI?
- Yes, as long as the policy coverage fulfill the requirement.
Lastly, where could we purchase the FWMI?
- You may contact the undersigned via the ‘Contact Me’ button at the bottom of this page.
For more information, please refer to MOM Website.
Important: The information and opinions in this article are for general information purposes only. They should not be relied on as professional financial advice. Readers should seek unbiased financial advice that is customised to their specific financial objectives, situations & needs. This advertisement or publication has not been reviewed by the Monetary Authority of Singapore.
Published By:
Fendy Susanto
Fendy hails from a family who value entrepreneurship, where he understands that ones’ finance is ones’ responsibility. He follow suit after leaving his decade-long career in construction industry, becoming a Financial Advisor, an Entrepreneur and a Content Creator.
Prior to joining this career, Fendy had lost his Mom and Dad to Cancer and Heart Attack, respectively. Having a first hand experience on how devastating that was financially and emotionally, his main goal is to “Leave no Life Unprotected”
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