The Ministry of Home Affairs (MOHA) has recently announced a significant revision to the minimum salary thresholds for Employment Pass (EP) Categories I, II, and III of companies under the purview of the Malaysia Digital Economy Cooperation (MDEC). These changes will take effect on 1 June 2026 and will be applicable to all new and renewal EP applications submitted on or after this date.
Under the revised framework, the minimum qualifying monthly base salary for each EP Category has been increased as below:
| EP Category | Current Minimum Salary | Revised Minimum Salary
(Effective 1 June 2026) |
| I | RM10,000 and above | RM20,000 and above |
| II | RM5,000 to RM9,999 | RM10,000 to RM19,999 |
| III | RM3,000 to RM4,999 | RM5,000 to RM9,999 |
As the new minimum salary requirements will come into effect on 1 June 2026, it is essential for companies to evaluate and adjust the salary structures of their expatriate employees accordingly to meet the requirements of the immigration authority. The change in EP category requirements will impact the expatriate employee’s eligibility to bring accompanying dependents, the duration of EP applications, and the number of permitted renewals.
The Expatriate Services Division (ESD) of the Immigration Department is yet to issue a similar announcement, however, it is expected that ESD will follow suit in due course. Given this, we recommend that companies under the purview of ESD also review the salary structures of their expatriate employees.
The revised EP salary thresholds signal the government’s continued focus on attracting high-quality foreign talent while safeguarding the local job market. By raising the salary threshold, companies are encouraged to prioritise hiring and developing local talent where possible, while foreign professionals are engaged for their specialised skills to support business growth and transformation, with an aim of knowledge transfer to the local workforce.
Our team can assist in assessing the impact of the revised EP salary thresholds on your existing and future expatriate population, including identifying potential risks and advising on strategic options to maintain compliance with immigration requirements. Additionally, we can provide guidance on workforce planning, compensation alignment, and alternative immigration pathways where applicable.
For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:
Sasha Reddy
Partner
Hana Rabi
Senior Manager
Kimberly Chong
Manager
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