Malaysia’s revised Employment Pass framework came into effect on 1 June 2026, introducing higher salary thresholds, revised pass durations and new succession planning requirements.
Our latest Legal Alert highlights the key changes and what employers should be aware of moving forward.
As announced by the Ministry of Home Affairs on 14 January 2026, Malaysia’s Employment Pass (“EP”) framework underwent significant revisions, which took effect on 1 June 2026. The revisions are intended to reduce reliance on foreign labour while strengthening workforce sustainability through greater emphasis on continuity planning, localisation, and talent succession. Among the most notable changes is the substantial increase in the minimum salary thresholds applicable across all categories of the Employment Pass.
For Category I, which covers Managing Directors and top-level executives, the minimum monthly salary has increased from RM10,000 to RM20,000. In addition, the maximum EP duration is now capped at ten (10) years.
For Category II, which applies to Department Heads and Managers, the minimum monthly salary range has been increased from RM5,000 – RM9,999 to RM10,000 – RM19,999. The maximum EP duration is likewise capped at ten (10) years and is subject to a mandatory succession plan.
For Category III, which covers Skilled Technical Staff and other specialised operational roles, the minimum monthly salary has been increased from RM3,000 – RM4,999 to RM5,000 – RM9,999 generally, and to RM7,000 – RM9,999 for manufacturing-related services. The maximum EP duration is now limited to five (5) years and is also subject to a succession plan.
Where an expatriate’s basic salary no longer satisfies the minimum salary threshold applicable to his or her EP category at the time of renewal, the employer must take appropriate steps to ensure compliance.
Should you require assistance in assessing the implications of these changes, reviewing your organisation’s existing Employment Pass arrangements, or navigating the application and renewal process, please do not hesitate to contact our Partner, Azrul Haziq Khirullah, and our Associate, Abu Zar Johan, for further information and assistance.
