REVISED EMPLOYMENT PASS SALARY POLICY EFFECTIVE 1 JUNE 2026
15 January 2026
Dear Valued Clients,
With reference to the Press Release issued by the Ministry of Home Affairs (MOHA) on 14 January 2026, we wish to inform that a revised expatriate salary policy will be implemented effective 1 June 2026, following the Cabinet's approval on 17 October 2025.
The existing expatriate salary policy, which was based on the decision of the Economic Council meeting dated 20 December 2016, has been further strengthened through a series of structured engagements with industry players and relevant stakeholders since 2022. The revised policy aligns with the objectives of the Thirteenth Malaysia Plan (RMK-13) to reduce reliance on foreign labour and to prioritise 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 does not disrupt business continuity.
In line with the principles of Malaysia MADANI, the Government remains committed to ensuring that all policy enhancements are implemented in a gradual, balanced, and inclusive manner, while prioritising national interests, promoting sustainable economic growth, and fostering the long-term development of local human capital.
For further assistance, please contact the MYXpats Helpdesk at helpdesk@myxpats.com.my or call +603-7839 7171.