Employment Pass — Malaysia's work visa after the 1 June 2026 reform
A guide to EP Categories I/II/III under the new policy in force from 1 June 2026 (ESD Announcement 266): salary thresholds, validity, Succession Plans, documents, timelines and Dependant Passes — plus the paid-up capital your company needs.
The three EP categories (new thresholds)
| Category | Until 31 May 2026 | From 1 June 2026 | Validity (new) | Succession Plan | Family |
|---|---|---|---|---|---|
| Category I | RM 10,000+ | RM 20,000+ | Up to 10 years | Not required | Spouse + children under 18 |
| Category II | RM 5,000–9,999 | RM 10,000–19,999 | Up to 10 years (with a Succession Plan, from 1 January 2027) | Required from 1 January 2027 | Spouse + children under 18 |
| Category III | RM 3,000–4,999 | RM 5,000–9,999 (manufacturing and manufacturing-related services: RM 7,000–9,999) | Up to 5 years (with a Succession Plan, from 1 January 2027) | Required from 1 January 2027 | Spouse + children under 18 (new) |
A Succession Plan (Cat II/III) documents how knowledge and skills transfer to local talent during the expatriate's tenure: the positions concerned, the training/mentoring plan, a reasonable timeline, and business continuity at handover. Submitting it becomes mandatory for Category II and III applications from 1 January 2027 (ESD Revised Expatriate Salary Booklet). For Category III, the minimum basic salary is RM 7,000 at companies in the manufacturing sector and manufacturing-related services under MITI and MIDA (ESD FAQ 10). The minimum salary is the basic monthly salary taxable in Malaysia; allowances, incentives, bonuses and salary paid outside Malaysia are not counted (ESD Revised Expatriate Salary Booklet; FAQ 9). Sources: ESD MOHA Announcement 266, MOHA FAQ (38 Q&A), MOHA press release 2026-01-14, ESD Revised Expatriate Salary Booklet, ESD Revised Expatriate Salary Policy FAQ (updated 12 February 2026; checked 8 October 2026).
Paid-up capital requirements
| Ownership structure | Required paid-up capital |
|---|---|
| 100% Malaysian-owned | RM 250,000 |
| Joint venture | RM 350,000 |
| 100% foreign-owned | RM 500,000 |
| Foreign-owned companies in wholesale, retail and trade (WRT licence required) | RM 1,000,000 |
The EP is sponsored by a Malaysian company (Sdn Bhd); a Labuan company uses the Labuan Work Pass instead. The company formation overview compares the two routes.
Application process (about 3–6 months in total)
- The company's ESD account is approved (company registration on ESD, first time only — 2–6 months by our estimate; ESD's official processing time is 14 working days once all documents are in order, per its company registration FAQ), then the company opens the EP application on ESD (MyEG) — ~1 week
- ESD review (Expatriate Services Division) — 2–3 weeks
- VDR (Visa with Reference) issued — ~1 week
- SEV via Malaysia's eVISA (online) — 2–7 working days
- Enter Malaysia + medical check — within 7 days of arrival
- EP sticker endorsed in passport — 2–3 weeks
Dependant Pass (family)
- From 1 June 2026, all EP categories (I/II/III) may bring a spouse and children under 18 on a Dependant Pass (Cat III newly opened). Children aged 18–25 come under the Long-Term Social Visit Pass (LT-SVP) instead (ESD, Revised Expatriate Salary Policy).
- Fees per person: ESD application fee RM 500 (RM 540 incl. 8% SST), Immigration pass fee RM 90 per year, processing fee RM 50 per application, plus a visa fee for some nationalities (ESD fee table, revised 1 September 2024; checked 3 October 2026). Marriage and birth certificates must be translated into English and attested as a certified true copy by the Malaysian embassy in your home country or your country's embassy in Malaysia (ESD Online Guidebook V6). Malaysia is not a party to the Apostille Convention; ESD asks for this attestation instead.
- A spouse who wishes to work must apply for their own Employment Pass (ESD); children can attend private/international schools.
Our EP support — free route assessment first
Before you sign anything we assess, free of charge, whether your case fits the MDEC route (digital businesses) or the standard ESD route — the fee is fixed accordingly:
MDEC route
For MDEC-eligible digital businesses.
JPY 630,000 per pass, excl. Japanese consumption tax and government fees · ≈ US$4,000 / RM 16,400
ESD route
Standard route via ESD.
JPY 850,000 per pass, excl. Japanese consumption tax; government fees approx. JPY 112,000 · ≈ US$5,400 / RM 22,100
Start with a free 30-minute consultation
Tell us about your plans for your Employment Pass. Consultations in English, Japanese, Chinese or Malay, from our Kuala Lumpur office.