Migrant Workers’ New Medical Insurance Rules in Singapore

This post was originally posted on Planner Bee.

In Singapore, the Workplace Safety and Health Act covers the safety, health, and welfare of persons employed at a workplace. As such, medical insurance becomes essential in protecting both the employees’ and employers’ interests in the event of unpredictable accidents that can result in monetary losses.

Employers are legally required to provide medical insurance (MI) for work permit holders, S-Pass holders, and foreign domestic workers (FDWs). They are not allowed to pass the insurance costs on to the employees.

By requiring employers to pay for their foreign workers’ MI, this ensures that employees, particularly lower-paid foreign workers, have access to medical treatment in case of accidents, illnesses, or other health-related needs while they are in Singapore.

In this article, we will look into the medical insurance requirements for foreign workers with work permits or S-Pass, the upcoming changes to the requirements, and the implications for their employers.

Changes to medical insurance requirements

The first changes to medical insurance requirements kicked in on 1 July 2023.

With rising medical costs, the government increased the minimum medical insurance required for foreign migrant workers, from S$15,000 a year to S$60,000 a year. For claims above S$15,000, insurers will handle 75% of the co-payment, and employers will handle the remaining 25%.

The enhanced medical insurance can better protect employers against large medical bills incurred and is implemented in two stages:

Employers can 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.

Read more: Maid Insurance: What Is It and Why Should You Look Into This

Implications to employers after the first change

Employers in Singapore bear legal responsibility for the cost of medical treatment for their foreign workers. While MI premiums have increased to include higher coverage, should any accidents happen, employers are more protected than before.

Previously, medical insurance only covered up to S$15,000 of a foreign worker’s medical expenses. Anything extra will be fully paid by the employer.

However, under the new law, the insurance provider will fully cover claims up to S$15,000. Thereafter, claim amounts above S$15,000 will be paid through a co-payment of 75% by insurers and 25% by employers, up to a total claim amount of S$60,000.

Take, for example, Alex, a construction company boss whose foreign worker suffered from an injury and incurred a S$45,000 medical bill.

Under the old legislation, Alex must fork out S$30,000, after claiming the first S$15,000 from the insurer. With the enhanced medical insurance, Alex will pay 25% of the S$30,000, while the insurer will pay the first S$15,000 and 75% of the remaining S$30,000.

Instead of the full S$30,000, Alex will only pay S$7,500, and the rest of the bill will be handled by the insurer.

Implications to employers after 1 July 2025

Many providers of Foreign Worker Medical Insurance (FWMI) have already started to alter their policy offerings according to the required changes.

Under the new regulations, employers will no longer need to fork out their workers’ medical treatment upfront and then claim the amount from insurers later. Insurers will have to reimburse hospitals directly.

This new regulation helps to ensure workers get the best care possible as employers do not have to fret about big medical bills since they no longer need to pay for treatment first.

There will also be a standardisation of allowable exclusions, including procedures that are not medically necessary, such as cosmetic surgery. Currently, the list of exclusions is independently decided by the insurer according to their policies.

While most FWMI plans are available to foreign workers who are either 65 or 69 years old and below, the differences in premiums are usually based on how many workers are insured by the company.

After 1 July 2025, age-differentiated premiums will be introduced, separating premiums for those aged 50 and below, and those aged above 50.

In conclusion…

While premiums for medical insurance for foreign workers have increased with the new changes and regulations, the measure overall helps to minimise the financial liability on employers.

It is important to check that your insurance is up to date with the new regulations when you renew your foreign workers’ medical insurance in the upcoming months. Employers will need to submit your foreign workers’ medical insurance details online before you can request to issue or renew a work permit, and when the details change.

Employers can choose from a variety of insurance plans offered by insurers in Singapore. While basic plans cover the minimum required by law, employers can also choose more comprehensive plans that offer additional benefits like outpatient coverage, specialist care, and dental services.

If you are concerned about your employee’s coverage, feel free to reach out to the Planner Bee team at [email protected] to know more.