In brief
Since our previous client alert (accessible here), it has been announced that the minimum salary requirements for Employment Pass (EP) Categories I, II and III for companies registered under the Expatriate Services Division (ESD) will increase effective 1 June 2026.
In addition to the revised salary thresholds, specific EP duration limits will also be introduced from 1 June 2026 onwards.
Key takeaways
The revised EP minimum salary requirements, and employment durations, are as follows:
|
EP Category |
Current Minimum Salary |
Revised Minimum Salary |
EP Duration |
| Category I |
MYR 10,000 and above | MYR 20,000 and above | Up to 10 years |
| Category II | MYR 5,000 – MYR 9,999 | MYR 10,000 – MYR 19,999 | Up to 10 years (with a succession plan) |
| Category III | MYR 3,000 –MYR 4,999 | MYR 5,000 – MYR 9,999 (except for the manufacturing and manufacturing-related services sector: MYR 7,000 – MYR 9,999) | Up to five years (with a succession plan) |
Accordingly, all new and renewal EP applications submitted on or after 1 June 2026 must comply with the revised requirements. To support the implementation of these revised requirements, the Ministry of Home Affairs (MOHA) has announced that it will hold engagement and consultation sessions with relevant stakeholders to clarify details and implementation processes, for a smooth and uninterrupted transition for businesses.
The minimum salary requirements for Malaysia Digital Economy Corporation (MDEC) and ESD applications have now been streamlined, and as such, companies should:
- Review expatriate recruitment plans against the revised requirements.
- Identify EP renewals that may be affected by the revised requirements, especially that expire in mid-2026.
- Adjust budgets to meet the revised salary requirements to avoid disruptions to EP applications.
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Trishelea Ann Sandosam, Partner, and Shernia Kong, Associate, have contributed to this legal update.
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