Any individual or business entity engaging in employment agency-related activities in Singapore must first obtain a valid Employment Agency Licence from MOM. As part of the licensing requirement, the submission of an employment agency bond is mandatory.

This requirement applies to:

• New employment agencies applying for an EA licence

• Existing agencies renewing their current licence

Bond Amounts & How They’re Determined

The employment agency bond acts as a formal financial guarantee to ensure that agencies operate ethically and in line with MOM’s statutory requirements. It is a necessary step for compliance and continued operation in Singapore’s regulated employment agency industry.

The required amount for an employment agency bond is not fixed; it varies depending on several factors assessed by the MOM. These include:

• The type of licence: Comprehensive or Select

• The number of years the agency has been in operation

• The total demerit points accumulated by the agency

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For new licence applicants, the exact bond amount will be stated in the In-Principle Approval (IPA) Letter issued by MOM. For agencies undergoing renewal, this amount will be clearly indicated in the Renewal Notice from MOM.

Understanding your specific bond amount early in the application process is crucial for timely compliance and uninterrupted business operations. If you’re unsure of your required bond value, it’s best to refer directly to the MOM website or consult with a licensed insurance broker for assistance.