Malaysia's 2026 Employment Pass salary thresholds
Last reviewed: 7 September 2026
From 1 June 2026, Malaysia's Employment Pass (EP) minimum salary requirements have risen sharply across all three categories, following the Ministry of Home Affairs (MOHA) press release of 14 January 2026 and Cabinet approval on 17 October 2025. Every EP category now also requires JTKSM Section 60K approval before the Expatriate Services Division (ESD) will process the application — a step that previously sat outside the expatriate pass pipeline.
While EP processing sits outside Licence C's core foreign-worker recruitment scope, the new Section 60K gateway now touches both expatriate and foreign-worker approvals, which is why employers are asking us about it directly.
Where foreign worker recruitment and EP processing now intersect
Our Licence C mandate covers sourcing, screening, and deployment of foreign workers under KESUMA and KDN-approved sectors — not expatriate Employment Pass filings, which sit with the Expatriate Services Division (ESD) under Immigration.
The 2026 reform narrows that gap. Every EP application, regardless of category, must now clear JTKSM Section 60K review before ESD will touch it — the same local-hiring justification check that underpins foreign worker quota approvals. Employers running both a foreign-worker headcount and an expatriate team are increasingly dealing with one compliance office instead of two.
What changed, and when
14 January 2026
MOHA's press release announces revised EP salary thresholds, following Cabinet approval on 17 October 2025.
21 May 2026
The Expatriate Services Division (ESD) issues implementation and transitional guidance ahead of the effective date.
1 June 2026
New salary floors and Section 60K pre-approval take effect for all new and renewal EP applications.
1 June 2027
A one-year exemption for GBS-sector Category III roles requiring native-level language skills lapses, per MDEC's 28 May 2026 clarification.
Transitional Treatment
Fully completed EP applications received before 1 June 2026 are evaluated against the old salary criteria, provided all submission requirements are met. Renewals must still be lodged within the standard three-month window before expiry — the revision does not extend that window.
New EP salary thresholds by category (from 1 June 2026)
Immigration assesses eligibility on basic monthly salary only — bonuses, allowances, housing stipends, and other benefits are excluded from the calculation.
| Category | Until 31 May 2026 | From 1 June 2026 | Typical roles |
|---|---|---|---|
| Category I | RM10,000+ | RM20,000+ | C-suite executives, technical directors, senior management |
| Category II | RM5,000 – RM9,999 | RM10,000 – RM19,999 | Mid-level managers |
| Category III | RM3,000 – RM4,999 | RM5,000 – RM9,999* | Technical specialists, skilled non-executive roles |
*** Manufacturing-sector Category III roles carry a higher band; confirm current figures with ESD before budgeting.
JTKSM Section 60K Approval
All Category I, II, and III applications now require JTKSM Section 60K approval before ESD submission. This adds a local-hiring justification review to the EP pipeline that did not previously apply. It typically adds 2–3 weeks to overall processing, so build it into your timeline rather than treating it as a formality.
What this means for your workforce planning
Compensation Reviews
Existing expatriate packages that clear the old floor but fall short of the new one need restructuring before the next renewal, or the pass will not be issued.
Succession Planning
Category I and II roles now carry a 10-year cumulative tenure cap, with a written succession plan showing how expatriate knowledge transfers to local staff over 2–3 years.
One Compliance Gateway
Section 60K now sits ahead of both foreign-worker quota and EP applications, so employers running both streams face a single local-hiring justification standard.
Early Filing
Applications submitted and fully completed before 1 June 2026 lock in the old thresholds. Renewals filed after that date, even for existing staff, must meet the new floors.
How Andaraya supports your compliance position
Foreign Worker Quota
Step-by-step guidance through the FWCMS eQuota application and Section 60K local-hiring clearance.
Learn moreForeign Worker Recruitment
End-to-end workforce sourcing, screening, and deployment across KESUMA and KDN approved industries.
Learn moreJTKSM Licence C Explained
What a Licence C agency can and cannot do, and where expatriate processing sits outside our scope.
Learn moreAct 446 Accommodation
Centralised living quarters (CLQ) audits and JTKSM hostel certification for your workforce.
Learn moreEmployment Pass salary thresholds & Section 60K (2026 update)
When do the new Employment Pass salary thresholds take effect?
What is the new minimum salary for Category I?
What is the new minimum salary for Category II?
What is the new minimum salary for Category III?
Do I still need JTKSM Section 60K approval for an Employment Pass?
What happens to EP applications already submitted before 1 June 2026?
Is there an exemption for Global Business Services (GBS) roles?
Does the salary revision change EP renewal deadlines?
Is there a tenure cap on Employment Passes now?
Does Andaraya process Employment Pass applications?
Reviewing your expatriate or foreign worker headcount for 2026?
Get guidance on Section 60K approvals, EP salary floor compliance, and foreign worker quota planning in one conversation.