In brief

The minimum salary requirements for Employment Pass (EP) Categories I, II, and III for companies registered under the Malaysia Digital Economy Corporation (MDEC), will be increased effective 1 June 2026.

Key takeaways

Based on a recent announcement by MDEC, the minimum salary requirements for EP Categories I, II, and III will be increased effective 1 June 2026.

The revised EP minimum salary requirements are as follows:

EP Category Current Minimum Salary Revised Minimum Salary
(Effective 1 June 2026)
 I  RM 10,000 and above  RM 20,000 and above
 II  RM 5,000 to RM 9,999  RM 10,000 to RM 19,999
 III  RM 3,000 to RM 4,999  RM 5,000 to RM 9,999

All new and renewal EP applications submitted from 1 June 2026 onwards must comply with the revised minimum salary requirements.

Given the significant upward adjustment, companies should:

  • Review current and upcoming hiring plans involving foreign knowledge workers.
  • Assess the impact on pending renewals, especially those approaching expiry around mid-2026.
  • Budget for revised salary levels to ensure continued eligibility for EP applications.

At present, no similar salary increase has been announced for non-MDEC EP applications processed through the Expatriate Services Division system. We will continue to monitor for further updates.

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Trishelea Ann Sandosam, Partner, and Naomi Teh, Associate, have contributed to this legal update.

 

 

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