Employment Pass Category III — specific manufacturing sectors, policy from 1 June 2026

The Employment Pass (EP) is a work permit that enables an expatriate to take up employment with an organisation in Malaysia.

Category III Minimum salary increased to RM5,000 – RM9,999 (or RM7,000 – RM9,999 for specific manufacturing sectors), with a tenure limit of 5 years (requires replacement plan).

*Please note that all new and renewal applications submitted on or after 1 June 2026 must comply with these new regulations.

Employment Pass (EP) The Employment Pass (EP) is a work permit that enables an expatriate to take up employment with an organisation in Malaysia. The pass is subject to the contract of employment (up to 60 months). The Expatriate Committee (EC) or relevant authorities must give approval for the foreign talent to fill a position before the issuance of an expatriate Employment Pass can be made by the Immigration Department of Malaysia. Before you apply Check to see if the company is eligible to apply for an Expatriate Employment Pass Where to apply Go to the ESD website, log in through the company’s ESD account, and submit the expatriate application Duration of pass Up to 60 months, depending on the employment contract and upon discretion of the EC. The pass is only valid in Peninsular Malaysia Work rights Expatriates may only work for the company named in the Employment Pass. If they change company, they need to resubmit their application Other Passes Only Employment Pass holder with salary above RM5, 000 is eligible to apply 1. Employment Pass holders may apply for a Dependant Pass for the following family members: - Spouse - Children (under 18 years of age) - A legally adopted child (under 18 years of age) - Parents / Parents-in-law 2. Employment Pass holders may apply for a Long-Term Social Visit Pass for the following family members: - Children (over 18 years of age) - A legally adopted child (over 18 years of age) - Parents/Parents-in-law 3. Employment Pass holders may apply for a Social Visit (Temporary Employment) for a foreign maid *Click here to find out how to apply for Dependant Pass, Long-term Social Visit Pass or Social Visit (Temporary Employment) – Foreign Maid

5 Which sectors does MIDA MIDA evaluates expatriate applications for the following cover for expatriate sectors: applications a) Manufacturing Sector – All sub-sectors with a valid Manufacturing License (ML)/ Interim Approval Letter/ Letter of Exemption from ML (ICA10 Approval); b) Selected Services Sector –companies with a valid MIDA Incentive Approval Letter/ Status Approval Letter/ Grant Approval Letter; Page 2 of 29 As at 1 June 2026 No Questions Answers i. Selected services: a. Operational Headquarters (OHQ)* b. Regional Distribution Centre (RDC)* c. International Procurement Centre (IPC)* d. Principal Hub (PH)* e. Global Operation Hub f. Representative Office / Regional Office (RE/RO) g. R&D company h. Hotel & Tourism Projects i. Technical & Vocational Training Institutions & Other Services j. Medical Device Testing Laboratory ii. Other services (with MIDA incentives): a. Oil & Gas Services b. Clean Technology & Environment Management) c. Integrated Logistics Services (ILS) d. Integrated Market Support (IMS) e. Central Utility Facilities (CUF) f. Cold Chain Facilities (CCF) g. Premium Outlets (*) Important Notes: ● OHQ – Companies whose OHQ Status approval letter has exceeded 10 years must obtain an approval letter to maintain their OHQ Status via the InvestMalaysia portal. ● RDC/IPC – Companies whose RDC/IPC Status approval letter has exceeded 10 years must submit the Annual Performance Report (APR) to MIDA and obtain an Acknowledgement Letter. ● PH – Companies whose Principal Hub (PH) Incentive approval letter has expired must obtain a letter from MIDA confirming that the company continues to carry out activities under the definition of a Principal Hub. Page 3 of 29 As at 1 June 2026 No Questions Answers

3. What is the minimum paid-up The minimum paid-up capital requirement is categorised capital required to qualify for according to three (3) types of companies, as outlined expatriate applications? below: a) 100% Malaysian Owned Company – RM 250,000; b) JV Foreign & Malaysian Company – RM350,000; c) 100% Foreign Owned Company – RM500,000.

4. What are the main qualifying The main qualifying criteria for each expatriate position criteria for Key Post and category are as follows: Term Post? Criteria Key Post Term Post Foreign Paid-up At least Not Applicable capital RM1,000,000 Basic Monthly At least • At least RM5,000 (for Salary RM20,000 selected services sector); or • At least RM7,000 (for manufacturing sector) Academic Not Applicable • Degree and above + Qualification 3 years; or & • Diploma + 5 years; Minimum or Working • Certificate + 7 years Experience Localisation Not Applicable • Identify named Plan Malaysian successor(s) • Training programme • Duration of training programme

D.​ CHECKLIST No Documents Compulsory 1 Copy of Manufacturing License (ML)/ Interim Approval (Information Letter/ Letter of Exemption from ML (ICA10 Approval)/ captured from MIDA Incentive Approval Letter/ Status Approval Letter/ InvestMalaysia) Grant Approval Letter 2 JTK approval under Section 60K, Employment Act / 1955 •​ Exempted if Renewal EP (with no changes in Job Title, Job Description and incumbent) Page 4 of 8 ​ ​ No Documents Compulsory 3 Advertisement with MyFutureJobs / Exempted if fulfill one of the following: a)​ C-Suite & Key Posts (with MIDA Key Post approval letter before 15/6/2023); b)​ Minimum basic salary of RM15,000 and above; c)​ Investors/Shareholders/Owners; d)​ Corporate Transfers/ Placements / Trade Agreements (with corporate transfer letter from HQ overseas); e)​ Representative Office/ Regional Office (RERO) f)​ Renewal EP (with no changes in Job Title, Job Description and incumbent) 4 Copy of Passport: / All Pages (Full Booklet with Front & Back Pages with at least 6 empty pages) and at least 12 months validity. 5 Copy of the Employment Contract clearly specifying / the expatriate’s salary, employment duration, job title, and other relevant terms, duly stamped by LHDN 6 Copy of Certificates of Academic Qualifications / Full / Academic Transcript ●​ MUST be translated to English by Institut Terjemahan Buku Malaysia (ITBM) or any recognised translator ●​ Certified True Copy by the Embassy/ Notary Public/ Company Secretary/ Director or HR Manager with official company stamp, name, signature and position) 7 Updated Resume of Expatriate Optional (Key in information into system) 8 Job Description of the expatriate’s position applied Optional (Key in information into system) Page 5 of 8 ​ ​ No Documents Compulsory 9 The latest organisation chart / -​ clearly indicating current expatriates (name and position) and highlighting the expatriates (name and position) being applied for. 10 Training programme/ schedule to Localise the Position Optional (only for Renewal Term Post Application) (Key in information into system) 11 Copy of previous MIDA Key Post Approval Letter / (dated before 15 June 2023) (if any) 12 Letter to Justify the Requirement of the Position Optional (Key in information into system) Note: Documents in foreign language must be translated into English and certified as a true copy by the Embassy/ Notary Public/ Company Secretary.

2 Adakah pengiraan gaji merujuk kepada gaji Pengiraan gaji adalah gaji pokok tidak pokok sahaja atau termasuk elaun dan bayaran termasuk elaun dan lain-lain bayaran. lain?

3 Apakah takrifan syarikat yang tertakluk di Sektor di bawah seliaan MITI dan MIDA bawah sektor pembuatan dan Manufacturing- berdasarkan perincian di bawah: Related Services (MRS) bagi kategori gaji RM7,000 hingga RM9,999?

Sektor Pembuatan: Semua sub-sektor syarikat di bawah Sektor Pembuatan mempunyai salah satu daripada dokumen berikut: a. Lesen Pengilang (ML); atau b. Surat Pengesahan Pengecualian Lesen Pengilang

Manufacturing-Related Services (MRS): Merujuk kepada Sektor Perkhidmatan Terpilih di bawah MIDA yang mempunyai kelulusan Insentif, Status atau Geran.

Employment Pass (EP) The Employment Pass (EP) is a work permit that enables an expatriate to take up employment with an organisation in Malaysia. The pass is subject to the contract of employment (up to 60 months). The Expatriate Committee (EC) or relevant authorities must give approval for the foreign talent to fill a position before the issuance of an expatriate Employment Pass can be made by the Immigration Department of Malaysia. Before you apply Check to see if the company is eligible to apply for an Expatriate Employment Pass Where to apply Go to the ESD website, log in through the company’s ESD account, and submit the expatriate application Duration of pass Up to 60 months, depending on the employment contract and upon discretion of the EC. The pass is only valid in Peninsular Malaysia Work rights Expatriates may only work for the company named in the Employment Pass. If they change company, they need to resubmit their application Other Passes Only Employment Pass holder with salary above RM5, 000 is eligible to apply 1. Employment Pass holders may apply for a Dependant Pass for the following family members: - Spouse - Children (under 18 years of age) - A legally adopted child (under 18 years of age) - Parents / Parents-in-law 2. Employment Pass holders may apply for a Long-Term Social Visit Pass for the following family members: - Children (over 18 years of age) - A legally adopted child (over 18 years of age) - Parents/Parents-in-law 3. Employment Pass holders may apply for a Social Visit (Temporary Employment) for a foreign maid *Click here to find out how to apply for Dependant Pass, Long-term Social Visit Pass or Social Visit (Temporary Employment) – Foreign Maid

16. Who qualifies to be There are two (2) types of passes available for dependants, recognised as a dependant? as follows: a) Dependant Pass (DP) for: i. Legal spouse of Employment Pass holder; ii. Children below 18 years old (biological, stepchild, legally adopted) of Employment Pass holder; iii. Disabled child regardless of age. b) Long-term Social Visit Pass (LT-SVP) for: i. Children aged between 18 years until 25 years old (biological, stepchild, legally adopted; except for children with disabilities), who are unmarried and not studying/ working in Malaysia; ii. Children of common law spouse from previous relationship (below 7 years old); iii. Parents and Parents-in-law of Employment Pass holder; iv. Common law spouse of Employment Pass holder can be considered. Page 13 of 29 As at 1 June 2026 No. Questions Answers

20. Are Dependant Pass or No, dependants are NOT permitted to work in Malaysia Long-Term Social Visit Pass without first applying for or obtaining their own Employment holders permitted to work in Pass (EP). Malaysia? However, for social and welfare purposes (working for non- profit organisation), the holder may request for special permission to undertake activities from the Immigration Department of Malaysia. Page 17 of 29 As at 1 June 2026

15 Pemohon memegang Pas Penggajian Kategori Permohonan Pas Penggajian Kategori III III sebelum pelaksanaan Dasar Baharu yang dikemukakan bermula 1 Jun 2026 Penggajian Ekspatriat dan pas masih sah tertakluk kepada Dasar Baharu Penggajian setelah pelaksanaan Dasar Baharu Penggajian Ekspatriat. Ekspatriat Pemegang pas EPIII bermula sebelum 1 Adakah pemohon dibenarkan membawa Jun 2026 tertakluk kepada dasar sedia ada tanggungan bermula 1 Jun 2026? iaitu tidak dibenarkan membawa tanggungan. Contoh: Cetakan pas EPIII pada Mei 2026, adakah layak memohon pas tanggungan bermula 1 Jun 2026?

18. What are the conditions for bringing dependants? This is subject to meeting salary eligibility, insurance coverage requirements, and compliance with immigration regulations.

oritise the employment of suitably qualified local talent. Under this policy, the minimum salary thresholds for Employment Pass (EP) Categories I, II, and III have been revised, and a structured employment duration framework has been introduced. These measures aim to support sustainable economic growth while strengthening the development of local talents. Revised Employment Pass Salary Thresholds EP Category Current Minimum Salary Revised Minimum Salary (Effective 1 June 2026) Employment Pass Duration Category I RM10,000 and above RM20,000 and above Up to 10 years Category II RM5,000 - RM9,999 RM10,000 - RM19,999 Up to 10 years (with succession plan) Category III RM3,000 - RM4,999 RM5,000 - RM9,999 Up to 5 years (with succession plan) All new and renewal Employment Pass applications submitted on or after 1 June 2026 shall comply with the revised requirements. Companies are strongly encouraged to plan in advance and align their workforce strategies accordingly. In preparation for the full implementation of this policy, MOHA will conduct engagement and consultation sessions with relevant stakeholders, including industry players, employers, and related agencies. These sessions aim to provide clarity on policy requirements and implementation mechanisms, ensuring a smooth, transparent, and orderly transition that doe

manusia secara mampan, di samping memastikan ekspatriat yang berkhidmat di Malaysia memberi nilai tambah yang nyata kepada pembangunan bakat tempatan. 18 Adakah syarikat dibenarkan untuk melampirkan Syarikat dibenarkan memohon tempoh kontrak kerja dengan tempoh penggajian penggajian sehingga (60) bulan setelah maksimum mengikut kategori pas (5 tahun atau pelaksanaan Dasar Baharu Penggajian 10 tahun) semasa permohonan setelah Ekspatriat pelaksanaan Dasar Baharu Penggajian Ekspatriat? 19 Adakah terdapat sebarang pengecualian Tiada sebarang perubahan. dokumen bagi permohonan lanjutan? 20 Adakah terdapat sebarang perubahan kepada Tiada sebarang perubahan. pengeluaran i-Kad selaras pelaksanaan Dasar Baharu Penggajian Ekspatriat? 21 Adakah terdapat perubahan bagi bilangan Tiada sebarang perubahan. pembantu rumah

i Kawal Selia masing- lesen tersebut atau berdasarkan tempoh yang masing. ditetapkan di bawah Dasar Baharu? Nota: Permohonan tertakluk kepada sektor Contoh Jawatan: Guru Bahasa Inggeris (Permit Kesihatan dan Pendidikan sahaja Mengajar), Ayurvedik (Perakuan Pengamal Berdaftar) 8 Adakah pemegang pas sedia ada perlu Tidak. Pemegang pas yang tempoh sah mengemukakan semula permohonan selaras lakunya belum tamat tidak perlu dengan pelaksanaan Dasar Baharu Penggajian mengemukakan semula permohonan. Ekspatriat pada 1 Jun 2026? Walau bagaimanapun, permohonan Contoh: Pemegang EPI semasa akan bertukar lanjutan boleh dikemukakan seawal tiga (3) kategori pas kepada EPII setelah pelaksanaan bulan sebelum tamat tempoh pas, dan Dasar Baharu Penggajian Ekspatriat. permohonan tersebut akan tertakluk kepada Dasar Baharu Penggajian Ekspatriat sekiranya melepasi tarikh 1 Jun 2026. 9 Apakah status penetapan kategori pas bagi Tiada perubahan terhadap kategori pas. pemohon yang mengemukakan permohonan Penetapan kategori pas bagi permohonan bagi baki tempoh pas (Take-Up Balance) tersebut selaras kategori pas sedia ada. sekiranya berlaku perubahan kategori pas semasa permohonan tersebut dilakukan? 10 Adakah peme

der regularisation were subsequently not considered due to the moratorium, CAN be considered for expatriate applications given that their ICA10 approval was valid before the moratorium took effect. 7 What is MIDA’s Applications will be processed within 15 working days (end- processing timeline (client to-end), provided that all required information and documents charter) are complete and accurate, as follows; a) MIDA – within 10 working days; and b) Immigration Unit in MIDA – within 5 working days 8 How can I check the Please refer: A. General Information (No.3) for guidance on status of my application? accessing the system to track your application status. Page 4 of 29 As at 1 June 2026 No

PLOYMENT DURATION & REPLACEMENT PLAN 11. Why is a maximum employment duration imposed? It is intended to prevent prolonged reliance on expatriates and to encourage phased development of local talent. 12. What is meant by a replacement plan? A structured plan to transfer knowledge and expertise to local employees within the expatriate’s employment period. 13. How is the replacement plan monitored? Through documentation requirements, periodic reporting, and assessments by relevant agencies. 14. Can the employment period be extended? Any extension is subject to case-by-case evaluation based on national interest. 15. How is local workforce participation ensured? Employers must demonstrate training, knowledge transfer, and skills development of local employees. D. EXPATRIATE DEPENDANTS 16. Why are expatriates allowed to bring dependants? To attract and retain highly skilled talent and to support the overall well-being of expatriates. 17. Will this burden public facilities? No. Financial requirements and eligibility criteria remain in place to ensure appropriate controls. 18. What are the conditions for bring

Implementation of Succession Plan Requirement Under the Revised Expatriate Salary Policy >Media & Events > Media Release/Announcement>Announcement: Phased Implementation of Succession Plan Requirement Under the Revised Expatriate Salary Policy Announcement: Phased Implementation of Succession Plan Requirement Under the Revised Expatriate Salary Policy Following the announcement made by the Ministry of Home Affairs (MOHA) on 14 January 2026 regarding the Revised Expatriate Salary Policy, which took effect on 1 June 2026, we wish to inform that one of the key elements introduced under the policy is the succession plan requirement. The succession plan is aimed at ensuring a structured and systematic transfer of knowledge and expertise from expatriates to local employees throughout the employment tenure. This initiative supports the Government’s objective to strengthen local talent development while maintaining business continuity and operational efficiency. As part of a phased implementation approach, the requirement to submit and comply with the succession plan will only take effect from 1 January 2027 onwards. This transition period is provided to allow organisations sufficient time to prepare, plan, and align their internal workforce strategies with the new requirement. In the meantime, companies are encouraged to take proactive steps to identify suitable local successors and establish comprehensive training and knowledge transfer frameworks in preparation for full implementation. For any clarification, please do not hesitate to contact MIDA at the Industry Talent Management & Expatriate Division and Foreign Investment Division, MIDA or via email at [email protected]. Thank you. Malaysian Investment Development Authority (MIDA) PrevNext Why Malaysia Industries Setting Up in Malaysia Media & Events About MIDA Forms and Guide