Employment Pass Malaysia 2026: New Salary Rules for Foreign Workers

Last reviewed: 3 November 2026. Always check the latest rules with the Expatriate Services Division (ESD) of the Immigration Department.

Short answer: a Malaysia Employment Pass is the main work pass for foreign professionals. Since 1 June 2026, the minimum basic salary has roughly doubled: Category III now needs RM5,000–RM9,999 a month (RM7,000 in manufacturing), Category II needs RM10,000–RM19,999, and Category I needs RM20,000 or more. Only basic salary counts, not allowances. The new rules apply to all new and renewal applications from that date.

Key takeaways

• New thresholds apply to applications from 1 June 2026, both new and renewals.
• Category I: RM20,000+ (was RM10,000+); up to 10 years.
• Category II: RM10,000–19,999 (was RM5,000–9,999); up to 10 years, with a succession plan.
• Category III: RM5,000–9,999 (was RM3,000–4,999), or RM7,000–9,999 in manufacturing; up to 5 years.
• All categories can now bring dependants.

What are the new Employment Pass categories?

Category	Basic monthly salary (from 1 June 2026)	Before 1 June 2026	Maximum duration
Category I	RM20,000 and above	RM10,000 and above	Up to 10 years
Category II	RM10,000 – RM19,999	RM5,000 – RM9,999	Up to 10 years, with succession plan
Category III	RM5,000 – RM9,999 (RM7,000 – RM9,999 in manufacturing and related services)	RM3,000 – RM4,999	Up to 5 years, with succession plan

What counts as salary for the Employment Pass?

Only basic salary counts. Housing, transport and other allowances, bonuses and commissions don't lift you into a higher category. If an offer is close to a threshold, ask the employer to restructure it so the basic salary meets the requirement.

Why did Malaysia raise the thresholds?

The government wants to reserve mid-level jobs for Malaysians and keep foreign hiring focused on genuinely high-skilled roles. With unemployment at 2.9% in August 2026 (DOSM) and youth unemployment at 6.3%, the policy aims to push employers to train local talent. That's also why succession plans are being phased in for Category II and III passes, with compliance from 1 January 2027.

What else changed?

• Dependants: all Employment Pass categories can now bring dependants. Previously only Categories I and II could.
• Succession plans: employers must show how they'll transfer skills to Malaysian staff for Category II and III roles.
• Renewals: existing pass holders must meet the new thresholds when they renew.

How do you apply for an Employment Pass?

1. Get a job offer from a Malaysian company that's registered with the ESD.
2. The employer applies through the ESD online portal, attaching your passport, qualifications, CV and contract.
3. Some sectors need approval or support from a regulatory agency first, for example MDEC for tech roles.
4. Once approved, you enter Malaysia on the visa with reference (if your nationality needs one) and complete the medical and endorsement process.

Are there other passes for foreign workers?

• Professional Visit Pass for short-term assignments of up to 12 months.
• Residence Pass-Talent (RP-T) for experienced long-term expatriates, valid for up to 10 years.
• DE Rantau Nomad Pass for remote workers employed by companies outside Malaysia.

Next steps

Check your expected basic salary against the new categories before you accept an offer. Then build a Malaysian-style resume with our resume format guide, and browse IT jobs, engineering jobs and all the latest jobs in Malaysia.

Sources

• Immigration Department of Malaysia, Expatriate Services Division (ESD), revised Employment Pass salary requirements
• Baker McKenzie and KPMG immigration alerts, January 2026
• Department of Statistics Malaysia, Labour Force Statistics, August 2026

This article is general information, not legal advice. Check the latest rules with the ESD or a qualified immigration adviser.