The Ministry of Home Affairs, Kementerian Dalam Negeri (KDN), announced revisions to the minimum salary thresholds for Employment Pass (EP) Categories I, II, and III via an update from MDEC. The revised requirements will apply to new and renewal EP applications submitted from June 1, 2026. These changes introduce higher minimum salary levels and a re-categorization of EP salary bands.
The minimum base monthly salary for EP applications will increase from MYR 3,000 to MYR 5,000. Salary ranges of MYR 3,000 – MYR 4,999 will no longer qualify for EP applications. Revised salary thresholds are as follows:
- EP Category I: MYR 20,000 and above
- EP Category II: MYR 10,000 – MYR 19,999
- EP Category III: MYR 5,000 – MYR 9,999
As of the time of writing, ESD has not yet issued a formal announcement. The revisions may have downstream implications for Dependants Passes, domestic helpers (TEVP), renewal limits for EP Category III, MOHA prior approval requirements, and Labor Market Testing (LMT) obligations.
Clients should assess the potential impact on existing foreign national employees, particularly EP Category II and III holders who may be affected by re-categorization or renewal limitations. Advance workforce planning and compensation reviews will be critical ahead of the June 2026 implementation date. Further guidance from ESD and the authorities will be essential to address outstanding operational and compliance considerations. Newland Chase will continue to monitor the updates from the authorities regarding this matter.
This news alert is for informational purposes only and does not constitute legal advice. For case-specific guidance or further information, please contact Newland Chase directly.
