Malaysia
Revised Employment Pass salary policy
Impact date: 1 June 2026 Malaysia’s Expatriate Services Division has announced a revised Employment Pass salary policy effective 1 June 2026. The revised thresholds apply to all new and renewal Employment Pass applications submitted on or after 1 June 2026. The new minimum salary thresholds are:
- Category I: RM20,000 and above
- Category II: RM10,000 to RM19,999
- Category III: RM5,000 to RM9,999
The revised policy also introduces a structured employment duration framework. Category I passes may be granted for up to ten years. Category II passes may be granted for up to ten years with a succession plan. Category III passes may be granted for up to five years with a succession plan. The FAQ confirms that the salary requirement is based on basic salary only, excluding allowances or other payments.
Employer implications/action needed Employers should urgently review existing and planned expatriate arrangements, especially renewal timelines and employees currently below the new thresholds. Employers should also review employment contracts, salary structures, budgeting, and succession planning requirements for Category II and III roles. Where possible, renewal applications should be planned around the transition rules.
Employer risk EP applications or renewals submitted on or after 1 June 2026 may be rejected if the revised salary thresholds or other policy requirements are not met. This may affect work authorization, business continuity, dependent pass arrangements and expatriate workforce planning.
Link Expatriate Services Division website: https://esd.imi.gov.my/portal/latest-news/announcement/announcement-266-ep-salary-policy-2026/
KESUMA one-stop labor centres established / expanded
Impact date: Ongoing The Human Resources Ministry’s one-stop labor centre initiative has progressed beyond the earlier pilot proposal. The initiative is intended to consolidate key Human Resources Ministry services under one roof for workers, employers and unions, including labor, industrial relations, Industrial Court, trade union and social security-related services. Public reports indicate that pilot centres had been established in Penang, Kuala Lumpur, Johor Bahru and Kota Kinabalu, with further nationwide expansion planned.
Employer implications/action needed Employers should monitor local implementation and ensure that HR, legal and operations teams know where to direct employment-related filings, inquiries or dispute-related matters where services have been consolidated.
Employer risk N/A
Link N/A
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