Employment Pass in Malaysia 2026: categories, salary thresholds, fees and processing times

The short answer. The Employment Pass (EP) is the work permit a Malaysian company applies for when it hires a foreigner. For every new and renewal application submitted on or after 1 June 2026, the minimum basic monthly salary (allowances and bonuses do not count, and the salary must be taxable in Malaysia) is RM20,000 for Category I, RM10,000 to RM19,999 for Category II and RM5,000 to RM9,999 for Category III (ESD, Revised Expatriate Salary Booklet, read 9 Nov 2026). The Ministry of Home Affairs revised these thresholds, and the Malaysia Digital Economy Corporation (MDEC) told its clients the same (MDEC announcement, read 9 Nov 2026). On the MIDA route, the processing fee is RM2,000 plus 8% SST (RM2,160) per application, before Immigration fees, and each step has its own counter.

A note on sources: the thresholds, durations and process chart come from the Expatriate Services Division (ESD) of the Immigration Department. Fees come from MIDA’s 1 June 2026 guideline. Older pages, including some government pages, still show the pre-June figures of RM10,000 and RM5,000.

The three categories at a glance

	Category I	Category II	Category III
Minimum basic salary	RM20,000	RM10,000 to RM19,999	RM5,000 to RM9,999 (at least RM7,000 in manufacturing on the MIDA route)
Before 1 June 2026	RM10,000 and above	RM5,000 to RM9,999	RM3,000 to RM4,999
Longest stay with the same employer, position and category	10 years	10 years	5 years
Dependants	Yes	Yes	Yes, for applications from 1 June 2026
Succession plan	Not required	Required from 1 January 2027	Required from 1 January 2027

Source: ESD, Revised Expatriate Salary Booklet (pages 1 to 4), read 9 Nov 2026. MIDA’s 1 June 2026 guideline sets at least RM7,000 for the manufacturing sector and RM5,000 for selected services; check with MIDA.

What the ESD says in plain terms:

• One application covers up to 60 months. The 10-year and 5-year figures are the total time with one employer, counted from the date of employment with that company. A pass follows the employment contract, up to 60 months (ESD booklet, page 2; ESD Employment Pass page).
• Passes issued before 1 June 2026 stay valid until they expire, with no new application. A renewal submitted after that date must meet the new salary.
• The pass is valid in Peninsular Malaysia only and covers one named employer; changing company means a new application (ESD, Employment Pass, read 9 Nov 2026).
• A succession plan is the employer’s written plan to train Malaysian staff to take over the role. The ESD booklet describes it as a way to upskill local employees while the pass runs (page 1).

Who handles each step

The ESD’s process chart has five stages, each with a different counter. Times are the ESD’s own targets.

Step	Where	Time (normal track / fast track)
1. Register the company (one time)	ESD, esd.imi.gov.my	10 working days / 5
2. Labour approval under Section 60K of the Employment Act 1955, and a job advertisement on MyFutureJobs where it applies	Department of Labour (JTKSM), MyFutureJobs	Not stated in the chart
3. Support letter, for regulated sectors only	The regulator or approving agency, via Xpats Gateway (xpatsgateway.com.my)	5 working days / 2
4. Expatriate application	ESD online	10 working days / 5
5. Pass endorsement (e-Pass) and i-KAD card, at the Expatriate Services Centre in KLIA Terminal 1 or 2 for a new entry	ESD	1 working day on the normal track; the chart also shows a 3-working-day figure “upon arrival” for the fast track

Source: ESD, Revised Expatriate Salary Booklet, “End-to-End Process Flow”, read 9 Nov 2026. The chart prints the numbers close together, so check the booklet for the track that applies to you.

For a company that is already registered, the normal-track figures for steps 3 to 5 add up to about 16 working days, before the Labour step. That sum is our arithmetic, not an official promise, and the Labour step has no stated time. For companies in manufacturing and selected services, MIDA gives a firmer figure: its client charter is 15 working days including Immigration work, if the application is complete (MIDA, Employment Pass guideline, 1 June 2026, read 9 Nov 2026). A rejected application can be resubmitted without a cooling-off period under the same guideline.

What it costs

Item	Amount	Source
MIDA processing fee (manufacturing and selected services route)	RM2,000 per application, excluding 8% SST	MIDA guideline, 1 June 2026
Immigration process fee	RM125	MIDA guideline
Pass issuance	RM200 (Term Post) or RM300 (Key Post)	MIDA guideline
Visa fee	RM6 to RM50	MIDA guideline

A worked example on the MIDA route: RM2,000 plus RM125, plus RM200 to RM300, plus RM6 to RM50 comes to RM2,331 to RM2,475 for one pass, before the 8% SST that MIDA says these fees exclude. This is our sum from MIDA’s figures. The ESD page we read does not publish its own fee schedule, so confirm ESD-route and dependant pass fees with MYXpats before you budget. The sums leave out stamp duty on the contract, translation and certification of certificates, and the medical check.

The salary itself is the larger cost. A Category II hire is at least RM120,000 a year in basic pay; Category III is at least RM60,000.

What the company must have first

• Paid-up capital. Our company incorporation guide covers the ESD registration thresholds. On the MIDA route the minimums are RM250,000 (100% Malaysian-owned), RM350,000 (joint venture) and RM500,000 (100% foreign-owned).
• A clean tax and immigration standing. MIDA’s checklist asks that the company is not on the Immigration Department’s suspect or blacklist and that its tax payment status with LHDN is in order.
• A signed employment contract that states salary, duration and job title, stamped by LHDN.
• A passport valid for at least 12 months for the expatriate.
• Certified academic papers, translated into English by a recognised translator.
• An organisation chart that shows existing expatriates and the one being applied for.

The document list is MIDA’s checklist, which applies to its sectors; the ESD asks for a similar set but we have not seen its full list published. The MIDA guideline also exempts some roles from the MyFutureJobs advertisement, including a basic salary of RM15,000 and above, and investors, shareholders and owners.

For a founder budgeting a first foreign hire

1. Pick the category from the salary, not the title. Basic pay sets it. A RM9,000 basic plus RM3,000 in allowances is still Category III.
2. Check whether your sector adds a step. Regulated sectors need a support letter first (step 3); manufacturing and selected services go through MIDA.
3. Budget the stay, not just the pass. Category III passes applied for from 1 June 2026 allow a spouse and children, and each dependant pass has its own fee; ask MYXpats for the current amount.
4. Plan the succession plan now if you hire in Category II or III, because it becomes mandatory for applications from 1 January 2027.
5. If you are the founder, an Employment Pass is not the only route. The Investor Pass, the Malaysia Tech Entrepreneur Programme and other passes are compared in our guide to long-stay visas.

FAQ

What is the minimum salary for an Employment Pass in Malaysia? From 1 June 2026 it depends on the category: RM20,000 basic a month for Category I, RM10,000 to RM19,999 for Category II, RM5,000 to RM9,999 for Category III (at least RM7,000 in manufacturing on the MIDA route). Only basic salary counts. Source: ESD, Revised Expatriate Salary Booklet, read 9 Nov 2026.

What documents are needed for an Employment Pass? MIDA’s checklist asks for a passport valid for 12 months, the stamped employment contract, certified and translated academic papers, an organisation chart, and Labour Department approval under Section 60K, with the MyFutureJobs advertisement unless exempt. Source: MIDA, Employment Pass guideline, 1 June 2026.

What are the new rules for the Employment Pass? Higher basic salaries, a cap on total time with one employer (10 years for Categories I and II, 5 for Category III), dependants for Category III, and a succession plan for Categories II and III from 1 January 2027. Source: ESD, Revised Expatriate Salary Booklet.

How long does an Employment Pass take? MIDA’s client charter is 15 working days including Immigration, for complete applications in its sectors. On the ESD route the chart gives 5 to 10 working days for most steps; there is no single published total. Sources: MIDA guideline and ESD booklet.

Can an Employment Pass holder bring family? Yes, in all three categories for applications from 1 June 2026. The ESD lists spouse and children under 18 for the Dependant Pass, and parents, parents-in-law and children aged 18 to 25 for the Long-Term Social Visit Pass. Source: ESD, Revised Expatriate Salary Booklet, page 1, read 9 Nov 2026.

Do existing passes have to be replaced? No. Passes that are still valid stay valid until they expire. A renewal filed after 1 June 2026 follows the new salary rules. Source: ESD, Revised Expatriate Salary Booklet, page 2.

What we do not cover

• Residence Pass-Talent, the Professional Visit Pass and the Temporary Employment Pass for lower-skilled workers.
• Sabah and Sarawak, which run their own immigration control.
• Sector-specific rules for the civil service, public universities, teachers and healthcare practitioners.
• Employer payroll contributions and tax on expatriate pay.

This guide describes official rules as published on the dates shown. It is not legal, tax or immigration advice. For a decision, check the current text with the ESD, MIDA or MDEC, or with a licensed professional.