Singapore employers required to increase medical coverage for migrant workers

Mayumi Soh of Pinsent Masons MPillay, the Singapore joint law venture between Mpillay and Pinsent Masons, said: “Improved insurance coverage under the new measures not only allows migrant workers to better access healthcare resources, but also allows employers to better manage their financial risks when it comes to medical expenses.”

The new rule also applies to migrant domestic workers.

The improved benefits will apply in two stages. Under Stage 1, which starts on 1 July, the Ministry of Manpower (MOM) will introduce a co-payment element to employers and insurers for claim amounts above S$15,000, up to an annual claim limit of at least S$60,000. The co-payment element means the insurer pays 75% and employer pays 25% for amounts which are claimed over the first S$15,000.

Employers will not need to buy medical insurance for immigrant workers who hold a Dependant’s Pass and already have existing medical insurance which meets the minimum coverage. The insurance plan must cover the entire duration of the work permit.

Employers will be able to arrange a co-payment with the immigrant worker if the co-pay is reasonable and does not exceed 10% of the worker’s monthly salary; the co-payment duration does not exceed six months in for every two years of employment; and the co-payment plan is explicitly specified in the contract and fully agreed by the worker.

Stage 2 of the improved scheme will start on 1 July 2025. The MOM will standardise allowable exclusion clauses; apply different age-specific insurance premiums for those aged 50 and below and those aged over 50, as well as require insurers to reimburse hospitals directly upon processing a valid claim.

Employers must submit medical insurance details online via Work Permit Online before requesting to issue or renewing a Work Permit, and must provide updates if details change. Information which should remain up to date includes the name of the insurer; the insurance policy number; the commencement date of the insurance policy; and the expiry date of the insurance policy.