Quick answer
Employment Pass Category I is for foreign employees earning a basic salary of RM20,000 and above (effective 1 June 2026) and is granted for up to 10 years. The employer must hold an active ESD account and obtain the Labour Department's (JTKSM) approval under Section 60K of the Employment Act 1955 before applying through ESD. Only basic salary counts towards the threshold.
Last reviewed： · Reviewed by：ONEKEY BIZ compliance team
01
Overview
The Employment Pass is Malaysia's work pass for foreign professionals, managers and skilled employees. Since 1 June 2026 the three categories are defined by basic salary: Category I at RM20,000 and above, Category II at RM10,000–19,999 and Category III at RM5,000–9,999. Category I covers RM20,000 and above and is granted for up to 10 years.
The process has two approvals before the pass itself. First, the employer must obtain approval from the Labour Department (JTKSM) under Section 60K of the Employment Act 1955 to employ a foreign employee, which reviews why the role is not filled locally. Then the application is submitted through the employer's ESD account, followed by the visa endorsement once approved.
Category I is the only category without a succession-plan requirement, and it offers the longest validity. Because only basic salary counts, packages that rely on allowances or bonuses to reach RM20,000 do not qualify — the employment contract has to state the basic salary clearly.
Who needs this
- Senior managers, C-suite and specialists earning RM20,000+ basic
- Regional heads posted to a Malaysian entity
- Founders drawing a senior basic salary
02
How the category is decided — and what it costs you
What decides the category is not the job title — it is the monthly salary. Immigration sorts the application into Category I, II or III on the fixed monthly salary in the contract, and that category then decides the pass duration, whether dependants can come, and whether the spouse may work in Malaysia.
This is where companies discover the cost after the fact. Pricing a role at RM9,500 instead of RM10,000 saves RM500 a month and drops the application from Category II to Category III — the maximum period with one employer falls from ten years to five, and a spouse who wants to work has to find their own employer and their own Employment Pass. The salary structure has to be worked out before filing, not after.
The NEEP revision of 1 June 2026 changed two more things. A single application can now cover up to 60 months instead of 24, so one approval can carry five years and renewals become rare. At the same time a maximum period with one employer was introduced for the first time — beyond it, the expatriate has to move to a different pass or the structure has to change.
| Category I | Category II | Category III | |
|---|---|---|---|
| Minimum monthly salary | RM20,000 and above | RM10,000–19,999 | RM5,000–9,999 |
| Maximum per application | 60 months | 60 months | 60 months |
| Maximum with one employer | 10 years | 10 years | 5 years |
| Can sponsor dependants | Yes | Yes | Yes (from 1 Jun 2026) |
| Spouse's right to work | Work endorsement on the Dependant Pass | Needs own EP | Needs own EP |
| Renewal window | 3 months before expiry | 3 months before expiry | 3 months before expiry |
Under the NEEP revision effective 1 June 2026. Passes issued before that date fall under transitional arrangements — an EP III must be renewed under the new framework before the dependant entitlement applies.
03
Renewal, and the three-month window
The renewal window is three months before expiry, and that is an operational boundary rather than a suggestion. File too early and it is returned; file too late and the pass expires before the new approval arrives — during which the expatriate cannot legally work and travel becomes a problem.
Renewal re-examines the original conditions: whether the salary still meets the Category I threshold, whether the company still holds a valid ESD registration and, where applicable, a WRT licence, and whether the employer's local headcount ratio and succession commitments have been met. If any of these changed over the pass period and was not dealt with, the renewal stalls.
We log the expiry and the renewal window on the day the pass is endorsed, and come back to you before the window opens to check the salary and the company documents — rather than waiting for an Immigration reminder to start looking for paperwork.
04
Documents you need to prepare
Employer
- Active ESD account and company profile
- SSM documents and latest financial statements
- Section 60K approval from JTKSM
Employee
- Passport with sufficient validity
- Academic and professional certificates
- CV showing relevant experience
- Recent passport-sized photo
Employment
- Employment contract stating basic salary, position and duration
- Job description
- Only basic salary counts towards the threshold — allowances, bonuses and benefits in kind are excluded.
- An employee cannot start work until the pass is approved and endorsed.
05
How to get it done with ONEKEY BIZ
- 1Eligibility Week 1
Salary band, role and company status checked against Category I.
- 2Section 60K Week 1–3
JTKSM approval to employ a foreign employee obtained.
- 3ESD application Week 3–4
Employer and employee documents submitted through ESD.
- 4Approval Week 4–8
ESD queries answered until approval.
- 5Endorsement Done
Visa endorsed in the passport; employee can start work.
You do
- Confirm the basic salary and role
- Provide employer and employee documents
- Keep the ESD account active
We do
- Check the category under the current policy
- Obtain Section 60K approval
- Prepare and submit the ESD application
- Follow up to endorsement and log expiry
06
What you receive
The pass endorsed in the employee's passport.
Approval record from the Expatriate Services Division.
JTKSM approval to employ the foreign employee.
Next renewal window logged 120 days ahead.
Real clients we've done this for
Official sources
Frequently asked questions
Do allowances count towards the salary threshold?
No. Only basic salary counts.
Can the employee start work while the application is pending?
No. Work may only start once the pass is approved and endorsed.
Is a succession plan always needed?
Category I does not require a succession plan.