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.
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.
MOHA's press release announces revised EP salary thresholds, following Cabinet approval on 17 October 2025.
The Expatriate Services Division (ESD) issues implementation and transitional guidance ahead of the effective date.
New salary floors and Section 60K pre-approval take effect for all new and renewal EP applications.
A one-year exemption for GBS-sector Category III roles requiring native-level language skills lapses, per MDEC's 28 May 2026 clarification.
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.
Immigration assesses eligibility on basic monthly salary only — bonuses, allowances, housing stipends, and other benefits are excluded from the calculation.
*** Manufacturing-sector Category III roles carry a higher band; confirm current figures with ESD before budgeting.
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.
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.
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.
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.
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.
Step-by-step guidance through the FWCMS eQuota application and Section 60K local-hiring clearance.
End-to-end workforce sourcing, screening, and deployment across KESUMA and KDN approved industries.
What a Licence C agency can and cannot do, and where expatriate processing sits outside our scope.
Centralised living quarters (CLQ) audits and JTKSM hostel certification for your workforce.
Get guidance on Section 60K approvals, EP salary floor compliance, and foreign worker quota planning in one conversation.