UPDATE: REVISED EP SALARY REQUIREMENTS (EFFECTIVE 1 JUNE 2026)
The Ministry of Home Affairs (MOHA) has announced a new expatriate employment policy aimed at strengthening local talent development while maintaining Malaysia’s competitiveness as an investment destination.
Under this new policy, the minimum salary requirements and employment duration for Employment Pass (EP) Categories I, II, and III have been revised. These changes will take effect on 1 June 2026, allowing employers sufficient time to prepare and comply.
The policy also introduces a maximum employment duration for expatriates and emphasizes succession planning, particularly for EP Categories II and III.
REVISED EP MINIMUM SALARY THRESHOLDS (APPLICABLE FROM 1 JUNE 2026) | ||||||
|---|---|---|---|---|---|---|
EP Category | Minimum monthly salary | Employment Contract Tenure | Dependent Status | |||
Current | Revised | Current | Revised | Current | Revised | |
Category I | RM 10,000 and above | RM20,000 and above | Up to 5 years (Renewable) | Up to 10 years | Allowed | Allowed |
Category II | RM5,000 – RM9,999 | RM10,000 – RM19,999 | Up to 2 years (Renewable) | Up to 10 years with succession plan | Allowed | Allowed |
Category III | RM3,000 – RM4,999 | RM5,000 – RM9,999 | Up to 1 year (Maximum 2 renewals) | Up to 5 years with succession plan | Not allowed | Allowed |
Category III (Manufacturing & MRS) | RM7,000 – RM9,999 | |||||
Note: Under the revised framework, roles previously covered under Category III (RM3,000 – RM4,999) no longer qualify for EP from 1 June 2026. | ||||||
Why This Change Matters?
- Reducing over-dependence on expatriate labour where local talent is capable;
- Ensuring foreign expertise is compensated at appropriate market levels;
- Encouraging stronger local workforce development and succession planning;
- Aligning with broader national economic and workforce goals.
What Employers Should Do Now?
Review current expatriate salary structures
Make sure all current and planned expatriate salaries meet the new minimums. Adjust pay if needed to avoid delays.
Plan for succession where required
For EP Categories II and III, prepare plans showing how local employees will take over these roles in the future.
Ensure future EP applications meet the revised salary thresholds
Any new EP applications or renewals submitted on or after 1 June 2026 must comply with the revised minimum salaries.
Employers should update HR policies, recruitment plans, and budget forecasts to reflect this change.
Seek professional advice early to avoid delays
Immigration rules are strictly enforced, and non-compliant applications may be delayed or rejected. Work with CentralHR early to review applications, salaries, and required documents to ensure smooth processing.
