Malaysia’s Ministry of Home Affairs (KDN) has announced a significant revision to the minimum salary requirements for Employment Pass (EP) Categories I, II, and III, effective 1 June 2026. This move marks a pivotal shift in the country’s approach to foreign talent — one that prioritizes high-value expertise, strategic workforce planning, and long-term economic competitiveness.

This change applies to Employment Pass (EP) applications submitted through MDEC and ESD. Effective 1 June 2026, the revised salary thresholds and other changes as follows:

Aside from doubling of salary bands across all categories, the changes introduced are:

1. Employers must now also incorporate succession planning into their workforce strategies while ensuring adherence to maximum tenure limit across all EP categories.
2. On the other hand, EP III category has seen some relaxation with the maximum tenure now extended to 5 years compared to the previous limit of two renewals, with sponsorship of dependants to be allowed as well.

These changes send a clear message: Malaysia is recalibrating its foreign workforce policy to attract and retain top-tier professionals who can contribute meaningfully to national development.

The new salary requirements will affect both new and renewal EP applications. Companies must act now to:

1. Adjust compensation packages to meet compliance

Effective 1 June 2026, it is mandatory to comply with the revised salary requirements. The minimum basic salary requirement to hire a FKW will be raised from RM3,000 to RM5,000 where basic salary less than RM5,000 will no longer be eligible to apply for EP.

2. Audit current EP holders and assess renewal risks

This change also applies to renewal applications where if currently your expatriate’s basic salary is less than RM5,000, his/her salary will need to be adjusted to meet the minimum salary requirement, or the staff will no longer be eligible to be on EP.

3. Revist workforce planning models to ensure continuity and competitiveness

With succession planning now being mandatory for EP Category II and III, workforce planning is essential to ensure knowledge transfer and leadership continuity are prioritized.

1. New Applications

We advise that you review and align your hiring plans for foreign talents in accordance with the stipulated timeline. 

2. Renewal Applications

As June 2026 approaches, we now have a short window to rethink how to attract, retain, and grow talent in Malaysia. We can help you navigate these changes and strengthen your workforce planning strategy.

Schedule a time to speak with us (email gofurther@triide.com) today and let us guide you through your next steps.