Malaysia will raise the minimum salary requirements for expatriate Employment Passes across most categories starting 1 June 2026, according to an announcement by the Malaysia Digital Economy Corporation. The revised thresholds will apply to both new applications and renewals submitted from that date onwards.

This marks the first major update to Employment Pass salary requirements since 2016 and is expected to affect companies employing foreign professionals, as well as expatriates planning to work in Malaysia.

Minimum Salary Thresholds Set To Increase Across All Categories

Under the updated framework, minimum monthly salaries for Employment Pass holders will rise significantly across all three categories.

Category I Employment Passes, which currently require a minimum monthly salary of RM10,000 and above, will see the threshold increase to RM20,000 and above. Category II Employment Passes will move from the current range of RM5,000 to RM9,999 to a revised range of RM10,000 to RM19,999. For Category III Employment Passes, the minimum monthly salary will increase from RM3,000 to RM4,999 to a new range of RM5,000 to RM9,999.

These revised salary levels will apply to all Employment Pass applications and renewals submitted on or after 1 June 2026, regardless of when employment contracts were signed.

Changes Apply To New And Renewal Applications From June 2026

The Malaysia Digital Economy Corporation said companies are strongly encouraged to plan ahead and review their foreign workforce strategies to ensure continued compliance once the new requirements take effect.

The changes fall under the authority of the Ministry of Home Affairs and have already been confirmed, with no indication that the implementation date will be delayed or phased.

Why Salary Categories Affect Family Eligibility And Length Of Stay

Employment Pass salary categories play a key role in determining both family eligibility and length of stay in Malaysia.

Under current Immigration Department guidelines, Category I and Category II Employment Pass holders are generally allowed to bring family dependants, while Category III pass holders are typically not eligible to do so. Higher salary thresholds may therefore affect whether an expatriate qualifies for a category that allows dependants.

Pass validity also differs by category, with each tier carrying different renewal limits. Category I Employment Passes are valid for up to five years, while Category II passes are valid for up to two years. Both categories allow unlimited renewals, subject to the employment contract. In contrast, Category III Employment Passes are valid for a maximum of one year and can only be renewed twice, making them less suitable for longer-term employment arrangements.

What Employers And Expatriates Should Plan For

For employers, the revised requirements mean accounting for higher salary commitments when hiring or retaining foreign professionals, particularly for roles that currently sit near existing salary thresholds.

For expatriates, the changes may affect eligibility, renewal prospects, and long-term planning, especially for those supporting dependants or seeking longer stays in Malaysia.

With the updated salary thresholds taking effect in June 2026, both employers and expatriates may benefit from reviewing employment terms early to avoid disruptions to future Employment Pass applications or renewals.

Follow us on our official WhatsApp channel for the latest money tips and updates.