Malaysia's Ministry of Home Affairs (MOHA) has announced a revised Employment Pass (EP) salary policy, effective 1 June 2026, following Cabinet approval on 17 October 2025. The new policy introduces substantially higher minimum salary thresholds across all three EP categories, along with new rules on employment duration and succession planning.

This is the first major revision to the EP salary framework since the Economic Council's decision in December 2016 — making it one of the most significant changes to Malaysian immigration policy in nearly a decade.

Revised Salary Thresholds by Category

The salary increases are substantial across all categories. Here is a full breakdown of the old versus new requirements:

* Succession planning required for Category II and III renewals.

New Employment Duration Limits

Under the previous framework, Employment Passes could be renewed indefinitely with no maximum duration. The revised policy introduces maximum cumulative employment periods for the first time:

• Category I and II: Maximum of 10 years cumulative employment in Malaysia under EP
• Category III: Maximum of 5 years cumulative employment
• Extensions beyond these limits will be evaluated on a case-by-case basis based on national interest

Succession Planning Requirements

A key new element of the revised policy is the formal requirement for a structured succession or replacement plan for Category II and III EP holders. Employers will need to demonstrate a credible pathway toward placing a qualified Malaysian professional in the role.

Succession plans will be subject to monitoring through documentation, periodic reporting, and assessment by the relevant authorities. Failure to implement an approved succession plan may adversely affect future EP applications.

What This Means for You

Whether you are an employer planning to hire foreign talent, or a professional currently holding an EP, here is what you should do before June 2026:

• Review your current EP category and check if your salary meets the new threshold
• If your EP is due for renewal around mid-2026, plan ahead — the new salary must be in place at the time of application
• Employers should assess all current EP holders and identify any salary gaps before the deadline
• Category II and III employers should begin drafting succession plans as early as possible
• If you are planning a new EP application, ensure your offer letter reflects the new salary floors

Why Is the Government Making These Changes?

The revised policy is aligned with Malaysia's MADANI principles and the objectives of the Thirteenth Malaysia Plan (RMK-13), which aim to reduce reliance on foreign labour while prioritising the development of qualified local talent.

The government has been clear that the policy is not intended to restrict expatriate employment, but to ensure that foreign professionals are hired for genuinely senior or specialist roles where local talent is not yet available — and that their presence actively contributes to skills transfer and the development of Malaysian professionals.

MOHA has confirmed that engagement and consultation sessions with employers and industry players will be conducted ahead of the June 2026 deadline to support a smooth transition.