- Malaysia will double the minimum salary for Category I Employment Passes to RM20,000.
- New rules introduce lifetime duration caps of five to ten years for expatriate professionals.
- Dependant eligibility now includes parents-in-law across all three visa categories starting June 2026.
(MALAYSIA) — Malaysia’s Ministry of Home Affairs announced new rules for the Employment Pass that take effect June 1, 2026, doubling the minimum salary for top-tier expatriate visas and introducing lifetime caps on how long foreign professionals can stay on the programme.
The changes raise the Category I minimum salary from RM10,000 to RM20,000 per month and set maximum Employment Pass durations of 10 years for Categories I and II, and 5 years for Category III. Malaysia also expanded dependant eligibility across all three categories to include spouses, children, parents, and parents-in-law.
Malaysia’s Ministry of Home Affairs (MOHA) issued the changes in a press release on January 14, 2026, after Cabinet approval on October 17, 2025. The rules apply to all new and renewal Employment Pass applications submitted on or after June 1, 2026, making the filing date the dividing line for which requirements apply.
Key changes announced
- Minimum salary increases. Category I doubled to RM20,000+; Category II moved to RM10,000–RM19,999; Category III moved to RM5,000–RM9,999 with RM7,000+ for manufacturing and manufacturing-related services.
- Maximum total durations. Category I and II capped at 10 years total; Category III capped at 5 years total.
- Expanded dependant eligibility. Spouses, children, parents, and parents-in-law now eligible across all categories.
- Succession plan requirements. Categories II and III require local workforce succession plans as part of filings.
- Filing-date trigger. Rules apply to new and renewal applications submitted on or after June 1, 2026.
MOHA rationale and statement
MOHA framed the measures as part of a broader push to reduce reliance on foreign labour and increase skills transfer. “This adjustment. is meant to reduce dependence on foreign labor and to prioritize local talent,” MOHA said, adding it would provide a “guide for employers in planning more structured succession plans.”
| EP category | Monthly salary threshold (approx. USD) |
|---|---|
| Category I | RM20,000+ per month (from RM10,000+); approx. US$4,900+ |
| Category II | RM10,000–RM19,999 (from RM5,000–RM9,999); approx. US$2,450–US$4,900 |
| Category III | RM5,000–RM9,999; manufacturing-related services: RM7,000+; approx. US$1,230–US$2,450 |
Succession plan requirement flagged for Categories II and III.
The government linked the policy to workforce development goals and the 13th Malaysia Plan (RMK-13), emphasising succession planning, local hiring priorities, and skills transfer as core objectives that will factor into adjudication of Employment Pass applications.
Details by category
Under the revised minimum salary bands, category placement hinges more sharply on monthly pay, affecting eligibility and employer budgeting for expatriates in Kuala Lumpur and other business hubs.
Category I (high-level managerial) will require RM20,000+ per month from June 1, 2026, up from RM10,000+.
Category II (mid-level) will move from RM5,000–RM9,999 to RM10,000–RM19,999 per month. This category also carries a requirement for a local workforce succession plan and is capped at a maximum total of 10 years.
Category III (low-level or support roles) will move from RM3,000–RM4,999 to RM5,000–RM9,999 per month, with a manufacturing and manufacturing-related services floor of RM7,000+. Category III is capped at a maximum total of 5 years and requires a succession plan.
Impact on employers and workforce planning
The new salary thresholds and caps apply to renewals as well as new hires filed on or after June 1, 2026, creating immediate workforce-planning pressure. Employers who renew expatriate staff near the effective date may face higher payroll costs to preserve category placement.
Employers must also review what counts toward the minimum salary in practice, especially where compensation includes base salary, fixed allowances, and variable payments. The policy materials focus on monthly salary ranges and employers typically need to verify how different components are treated before filing.
Because the caps apply by category, renewal logic changes: extensions are no longer effectively open-ended. Companies should plan earlier for transitions, especially for Category III roles with a 5-year total limit, and may need to accelerate training pipelines or restructure roles so local staff can assume responsibilities within the permitted period.
The succession plan requirement for Categories II and III becomes both a compliance document and a scheduling tool, requiring managers to define handover timelines and milestones that align with renewal cycles and maximum total periods.
Dependants and family considerations
The rules broaden dependant eligibility across all categories to include spouses, children, parents, and parents-in-law. This expands on prior restrictions that limited dependant access under some categories.
That expansion may influence how expatriates time moves and filings, because families coordinate schooling and care responsibilities around the principal applicant’s approval. Including dependants under Category III could change decisions about relocating together or staging applications.
Employers supporting relocations should note that dependant applications typically require evidence of relationship and identity documents. Families may need to prepare official records early enough to match the filing window for applications submitted on or after June 1, 2026.
Implementation timeline and compliance guidance
The filing-date trigger is central to compliance: the rules apply to new and renewal Employment Pass applications submitted on or after June 1, 2026. Employers facing renewals near the effective date must decide whether to file before the date under the prior framework or after the date under the new rules.
MOHA said it will hold briefing sessions with stakeholders to support a smooth transition, acknowledging the changes reshape payroll planning and compliance timetables for companies relying on foreign professionals.
Because the rules apply based on submission date rather than start date or contract signature, HR teams need to track filing dates closely and ensure the correct rules are applied when preparing applications.
Official sources and compliance notes
MOHA linked the policy to the 13th Malaysia Plan (RMK-13) and framed structured succession planning as both a labour-market and governance objective. Agencies such as the Expatriate Services Division (ESD) and the Malaysia Digital Economy Corporation (MDEC) have confirmed that compliance is mandatory for applications from June 1, 2026.
Employers should monitor procedural instructions from the agencies involved and ensure internal workflows and documentation reflect the new emphasis on succession plans, salary composition, and filing-date rules.
Context and statistics
The new rules arrive after a period of strong demand for expatriate permissions. In the first 11 months of 2025, Malaysia issued 166,980 new Employment Passes, exceeding 2024’s total of 160,380.
Malaysia also had 2.13 million active foreign worker visas as of October 2025, providing a backdrop for tighter policy calibration and greater scrutiny of how employers document qualifications and succession planning.
Practical steps for employers
- Audit compensation structures. Review which pay components count toward the monthly minimum and adjust contracts or payroll where necessary.
- Assess category placement. Determine whether existing and prospective roles still qualify under revised bands, especially Category III roles in manufacturing with a RM7,000+ floor.
- Formalise succession plans. Prepare documented workforce succession plans for Categories II and III with timelines and milestones aligned to renewal cycles.
- Schedule filings carefully. Decide whether to file renewals before June 1, 2026 under the old rules or after under the new rules, based on business readiness and cost implications.
- Prepare dependant documentation early. Gather relationship and identity records for dependant applications to avoid staggered relocations or onboarding delays.
With salary thresholds raised and time limits introduced, companies bringing in expatriates need to align compensation, succession planning, and renewal timing well ahead of June 1, 2026 to maintain transfers and business continuity.
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