Singapore: Enhanced Medical Insurance Requirements for Work Permit and S Pass Holders

April 4, 2023

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Country / Territory

At a Glance

  • The Singapore government announced that it will enhance the minimum medical insurance requirements for all new and existing Work Permit (including migrant domestic workers) and S Pass holders in two stages.
      • Starting July 1, 2023 (Stage 1), employers will be required to co-pay 25% for claim amounts above the first SGD 15,000, with a new increased annual claim limit of SGD 60,000.
      • Starting July 1, 2025 (Stage 2), the Singapore government will standardize allowable exclusion clauses, introduce age-differentiated premiums, and mandate direct reimbursement from insurers to hospitals.
  • The government recommends that employers engage with insurers early ahead of the above implementation dates to avoid any inconvenience.

The Ministry of Manpower (MOM) announced that it will enhance the minimum medical insurance (MI) requirements for all new and existing Work Permit and S Pass holders in two stages.

Effective Date Details Impact
Stage 1 - Starting on July 1, 2023
    • The MOM will raise the minimum MI coverage for Work Permit and S Pass holders from SGD 15,000 to SGD 60,000 per year.
    • Employers will be required to co-pay 25% (and 75% by insurers) for claim amounts above the first SGD 15,000, up to the new annual claim limit of SGD 60,000.
      • Employers can make co-pay arrangements with their Work Permit or S Pass holders for medical bills if all of the following conditions 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 six months for every two years of employment; and
        • The co-payment option is explicitly stated in the employment contract or collective agreement and has the worker's full consent.
    • Employers must submit medical insurance details online before requesting to issue or renew a work permit.

 
    • Employers will need to provide higher medical insurance coverage and share a portion of the claim cost.
    • On the other hand, employers will be protected from unexpected large medical bills incurred by their employees.
    • Employers who fail to provide the required coverage may face penalties such as fines or the suspension of work pass privileges.
    • Employers should engage with insurers early ahead of the above implementation dates to avoid any inconvenience.
    • Employees benefit from increased financial protection and improved access to medical care.
Stage 2 - Starting on July 1, 2025
    • The MOM will implement the following additional enhancements to the MI requirements:
      • Standardization of allowable exclusion clauses;
      • Introduction of age-differentiated premiums for those aged 50 and below, and those aged above 50; and
      • Requirement for insurers to reimburse hospitals directly upon the admissibility of the claim.

 
    • Employers may be subject to higher fees as insurers adjust the premiums based on the age of the employees. However, this also means that younger employees will see lower premiums.
    • Employees benefit from the streamlining and standardization of the reimbursement process from the direct reimbursement by insurers to hospitals.

 
  • Improvement and standardization of insurance requirements. The changes are in line with the government’s policy of enhancing the protection of foreign national workers by ensuring increased access to medical care for foreign nationals.
  • Regular review and enhancement of work pass requirements. The MOM continues to review and implement enhancements to work pass conditions and requirements. Recently, the MOM introduced new verification requirements for Employment Pass applicants’ educational qualifications.

It is likely that the Singapore government will continue introducing changes to work pass application requirements as it continues to improve various immigration pathways, which may include increased MI contributions for Employment Pass applicants as well in the future.

This alert is for informational purposes only. If you have any questions, please contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].

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