Malaysia Rolls Out New Salary Policy for Foreign Workers
On June 1, 2026, new employment pass (EP) requirements went into effect in Malaysia. Pertaining primarily to salaries for foreign workers employed in Malaysia, the requirements set new monthly salary thresholds under the categories below.
Category I
- Current minimum salary: 10,000 MYR+ per month (~$2,450 USD+)
- Revised minimum salary: 20,000 MYR+ per month (~$4,905 USD+)
- Employment pass duration: Up to 10 years
Category II
- Current minimum salary: 5,000 MYR to 9,999 MYR per month (~$1,225 USD - $2,450 USD)
- Revised minimum salary: 10,000 MYR to 19,999 MYR per month (~$2,450 USD to $4,905 USD)
- Employment pass duration: Up to 10 years
- Subject to a succession plan
Category III
- Current minimum salary: 3,000 MYR to 4,999 MYR per month (~$735 USD to $1,225 USD)
- Revised minimum salary: 5,000 MYR to 9,999 MYR per month (~$1,225 USD to $2,450 USD)
- For foreign workers employed in the manufacturing and manufacturing-related services sectors, the minimum salary requirement is 7,000 MYR (~$1,715 USD)
- Employment pass duration: Up to five years
- Subject to a succession plan
The new policy does not apply to existing EP holders, who can work under their current EP (with the existing salary thresholds) until it’s time to renew their EP or employment contract.
The aim of Malaysia’s revised salary requirements for EP holders is to prioritize the employment of qualified local talent over foreign labor.
Sources: Dentons, The Economic Times
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