If you are relocating executives or hiring expatriates in Malaysia, the Employment Pass (EP) is the core work authorisation — and in 2026 the rules changed materially: minimum salary thresholds rose sharply on 1 June 2026. Here is the verified, current picture: categories, salaries, validity and the requirements checklist for foreign-owned companies.
What is the Employment Pass?
The EP is issued by the Immigration Department via the Expatriate Services Division (ESD) to let foreign professionals, managers and executives work for a Malaysian company. It is employer-sponsored and role-specific — your Malaysian company is the sponsor, so incorporation and employer registration come first.
2026 salary thresholds by category
The revised expatriate salary policy took effect on 1 June 2026 (Cabinet-approved 17 October 2025) and applies to all new and renewal EP applications from that date:
| Category | Minimum monthly salary | Typical profile | Validity |
|---|---|---|---|
| EP I | ≥ RM20,000 | Senior executives / top talent | Up to 10 years |
| EP II | RM10,000 – RM19,999 | Mid-level professionals | Up to 10 years (succession plan) |
| EP III | RM5,000 – RM9,999 | Skilled / technical roles | Up to 5 years (succession plan) |
For context, the previous floors were roughly RM10,000 (EP I), RM5,000–9,999 (EP II) and RM3,000–4,999 (EP III) — the entry bar for expatriate hiring is now considerably higher. Certain sectors and technical roles carry specific salary floors, so confirm your role's category before applying.
Requirements checklist
- A Malaysian company properly incorporated with SSM and registered with the ESD where applicable;
- A genuine role matching the salary category and the candidate's qualifications and experience;
- Paid-up capital adequate for a foreign-owned employer — commonly RM500,000+ (services) or RM1 million (trading/retail) in practice;
- Supporting documents — passport, academic/professional credentials, employment contract, company documents;
- Dependants (spouse, children) can apply for a Dependant Pass (DP) tied to the main EP holder.
Common pitfalls for foreign companies
- Under-capitalised company — foreign-owned entities are frequently rejected at the capital-adequacy stage; plan capital at incorporation, not after;
- Salary–category mismatch — the offered salary must genuinely sit in the right band for the role;
- Wrong sequence — incorporate → capital in place → employer/ESD registration → EP application; each step gates the next.
ONEKEY BIZ handles incorporation, employer registration and EP/DP applications end-to-end, in Mandarin and English. Book a free consultation or view the Employment Pass service.
Frequently asked questions
What is the minimum salary for an Employment Pass in Malaysia in 2026?
Effective 1 June 2026: EP I requires at least RM20,000/month, EP II RM10,000–19,999, EP III RM5,000–9,999 — for all new and renewal applications.
How long is a Malaysian Employment Pass valid?
EP I and EP II can be issued for up to 10 years (EP II with a succession plan); EP III up to 5 years with a succession plan.
Sources & references
This article is general information only, not legal, tax or immigration advice. Policies, thresholds and official fees are set by the relevant Malaysian authorities and may change. Talk to our consultants about your specific situation.