RM20,000 monthly floor set for Malaysia Employment Pass holders June 1

Higher salary floors take effect June 1

Malaysia's Ministry of Home Affairs raises minimum salary thresholds for Employment Pass holders starting June 1, doubling the floor for top-tier professionals and reshaping how long expats can stay with a single employer. The Cabinet approved the framework Oct. 17, 2025 and the Expatriate Services Division confirmed implementation details in January.

The revised bands apply to all new and renewal EP applications filed on or after June 1:

• EP I: minimum basic salary rises from RM10,000 to RM20,000 a month, with stays of up to 10 years per employer
• EP II: minimum jumps from RM5,000 to RM10,000, capped at 10 years with a succession plan
• EP III: minimum lifts from RM3,000 to RM5,000, capped at five years with a succession plan

Salary assessment counts basic monthly pay only. Allowances and variable compensation don't qualify, the ministry said. Limited exemptions apply to certain EP III roles in Global Business Services through June 1, 2027.

Who feels the change

The rules hit mid-level foreign professionals and the Malaysian companies that sponsor them hardest. EP II and EP III workers who previously cleared the old thresholds with room to spare may no longer qualify at their current pay grade and employers face new pressure to file formal replacement plans showing how Malaysian staff will eventually take over.

Tourists and short-term visitors on Social Visit Passes are unaffected. Digital nomads using the DE Rantau pass also fall outside this policy, though the broader tightening signals a shift toward employer-based residence being reserved for higher earners.

One concession for families: EP III holders can sponsor dependants for the first time, provided the application is filed on or after June 1. EP I and EP II retain existing dependant rights.

What applicants should do before June 1

Complete EP applications submitted before June 1 will be assessed under the old salary criteria, per the Expatriate Services Division. Returned files must be resubmitted within defined windows to keep that grandfathering.

Employers planning renewals at the old RM5,000 or RM10,000 levels have a narrow window to file before the cutoff. After June 1, salary contracts must be restructured to meet the new floors or the application will be rejected.

Read our full Malaysia guide for the complete picture.