Malaysia Revises Expatriate Salary Policy

• Malaysia’s revised expatriate salary policy took effect on June 1, 2026, introducing new rules for Employment Pass applications, renewals, salary requirements and EP Category III holders.  

Expatriate Salary Policy 

Malaysia’s revised expatriate salary policy now applies to all Employment Pass (EP) applications submitted on or after June 1, 2026. Authorities continue to assess applications filed before that date under the previous framework.

Salary Requirements 

• Minimum salary thresholds are based solely on basic salary. 
• Employers and authorities do not include allowances, bonuses or other payments when calculating salary.

Employment Pass Renewals 

• Renewal applications submitted on or after June 1, 2026, must comply with the revised salary requirements. 
• The revised policy applies even to existing pass holders, including those who received approval for their current passes under the previous rules.

Employment Duration 

• Authorities now link employment duration to the employing company.
• If an employee changes employers, the duration calculation restarts with the new company. 
• Companies may apply for employment periods of up to 60 months.  

EP Category III Changes 

• Minimum salary exemption applications are no longer required for EP Category III. 
• The cooling-off period for EP Category III applications has been removed. 
• EP Category III renewal applications filed after June 1, 2026, must meet the new salary thresholds.  

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