Employment Pass Category III Application (Malaysia)

Quick answer

Employment Pass Category III is for foreign employees earning a basic salary of RM5,000 – RM9,999 (effective 1 June 2026) and is granted for up to 5 years with a succession plan. 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：2026-09-16 · Reviewed by：ONEKEY BIZ compliance team

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 III covers RM5,000 – RM9,999 and is granted for up to 5 years with a succession plan.

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 III passes may need to be supported by a succession plan — how the employer intends to develop or hire local talent to take over the role within the pass period. A thin succession plan is a common reason for queries, so we prepare it with you rather than as a formality.

Who needs this

Skilled professionals and executives earning RM5,000–9,999 basic
Specialist technicians on defined assignments
Employees whose previous EP III was below RM5,000 and must be re-assessed

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.

Employment Pass categories compared (from 1 June 2026)

	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.

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 III 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.

Documents you need to prepare

Employer

Active ESD account and company profile
SSM documents and latest financial statements
Section 60K approval from JTKSM
Succession plan for the role

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.

How to get it done with ONEKEY BIZ

1
Eligibility Week 1
Salary band, role and company status checked against Category III.
2
Section 60K Week 1–3
JTKSM approval to employ a foreign employee obtained.
3
ESD application Week 3–4
Employer and employee documents submitted through ESD.
4
Approval Week 4–8
ESD queries answered until approval.
5
Endorsement 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

What you receive

Employment Pass approval and endorsement

The pass endorsed in the employee's passport.

ESD approval letter

Approval record from the Expatriate Services Division.

Section 60K approval

JTKSM approval to employ the foreign employee.

Expiry reminder

Next renewal window logged 120 days ahead.

Real clients we've done this for

SSFIBREGLASS →

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 III applications may be asked for one, so we prepare it upfront.