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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