Malaysia’s EP salary floors and stay caps

Malaysia will raise Employment Pass salary floors for all three categories on 1 June 2026 and limit stays with the same employer to 10 years for Categories I and II and 5 years for Category III. The revision covers new and renewal applications submitted on or after that date, the Ministry of Home Affairs said.

Category I will require RM20,000 or more a month, Category II will run from RM10,000 to RM19,999 and Category III will rise to RM5,000 to RM9,999, with some manufacturing roles set at RM7,000 to RM9,999. Categories II and III also need a succession plan and dependents remain allowed under the revised rules. The changes are part of Malaysia’s New Expatriate Employment Policy.

Who feels the change

The rules hit expat workers on Employment Passes most directly. Long-term holders who once relied on repeated renewals with the same employer now face a fixed ceiling, which could push some to switch employers or look at other residence routes.

Digital nomads are mostly outside the change. Malaysia’s DE Rantau pass is separate from the Employment Pass system, though remote workers who want a local job will need to clear the higher salary bars. Tourist visas, eVisas and visa-free entries are unchanged and visa updates continue to apply only to paid work rules.

What employers and applicants need to do now

Employers should review salaries, job titles and any required succession plans before filing renewals after 1 June 2026. For pass holders, the 10-year clock with one employer starts on that date or on the issue date of the next pass, whichever is later.

A change of employer, category or position resets the clock with a new pass. That makes timing matter, especially for workers close to renewal dates and companies trying to keep key foreign staff in place.

Read our full Malaysia guide for the complete picture.