News and Updates

Malaysia Employment Pass 2026: Salary & Rule Changes

Quick Summary – Employment Pass Updates 2026

Minimum monthly salary raised to MYR 5,000 for Tier II & III roles (from MYR 3,000–4,000)
Tier I (high-skilled) threshold increased to MYR 10,000 (from MYR 8,000)
Mandatory digital arrival card (MDAC) required for all incoming foreigners 72 hours before arrival
COMPASS-like points system introduced for EP approvals – minimum 60 points needed
Job advertisement mandatory on MyFutureJobs for 28 days before EP application
Renewal processing time extended to 4–8 weeks; no automatic approval for low-salary roles
Spouse & dependent pass eligibility tightened – sponsor salary must be MYR 8,000+
Penalties for non-compliance increased: fines up to MYR 50,000 + possible deportation

What’s Driving the 2026 Employment Pass Reforms in Malaysia

In December 2025, Malaysia's Immigration Department and Ministry of Human Resources announced a major overhaul of the Employment Pass (EP) system, effective January 1, 2026. The changes form part of the government's "Malaysia Madani" economic vision, aiming to attract higher-calibre foreign talent, protect local employment opportunities and reduce reliance on mid- to low-skilled expatriates in non-priority sectors.

The salary threshold increases respond to rising living costs in Kuala Lumpur, Penang and Johor Bahru, as well as pressure from trade unions and local graduates who argue that foreign hires often undercut Malaysian salaries. By raising the bar, the government hopes to ensure foreign professionals bring specialized skills and command premium compensation, while encouraging companies to invest more in local talent development.

We need foreign expertise that lifts Malaysia up, not foreign workers who compete with our people at the lower salary levels.
— Malaysia Minister of Human Resources, December 2025

The reforms have been welcomed by multinational corporations in tech, finance, oil & gas and advanced manufacturing, where high-salary roles are common. However, SMEs in retail, hospitality, education and general administration face challenges filling positions at the new salary levels. Recruitment agencies report that Indian, Chinese, Filipino, Indonesian and European candidates are still applying in large numbers, but approvals are now stricter for mid-level roles earning MYR 4,000–6,000.

Malaysia Employment Pass salary tiers and points system 2026

New Salary Tiers & Points System in 2026

From January 2026, Employment Pass categories are structured with the following minimum salaries and requirements:

Tier I (high-skilled/executive): MYR 10,000+ monthly fixed salary; 70+ points on new COMPASS-like system
Tier II (skilled professional): MYR 5,000–9,999 monthly; 60–69 points required
Tier III (mid-skilled): MYR 5,000 minimum (previously MYR 3,000); 50–59 points
Age adjustment: applicants 45+ need MYR 1,000–2,000 higher salary or extra points
Sector premiums: finance, oil & gas, tech – minimum MYR 7,000–12,000 depending on role

The new points system evaluates salary vs local benchmarks, nationality diversity, company training spend on Malaysians, and alignment with national priorities (e.g. digital economy, green tech, halal industry). Applications scoring below 60 points are automatically rejected.

Malaysia Employment Pass job advertising and digital requirements 2026

Job Advertising & Digital Requirements

Key procedural changes for employers in 2026:

Job must be advertised on MyFutureJobs portal for 28 days before EP application (exemptions for intra-company transfers and very high-salary roles above MYR 15,000)
Mandatory digital arrival card (MDAC) for all incoming foreigners – completed online 72 hours before arrival
Spouse & dependent passes: sponsor salary must be MYR 8,000+ (previously MYR 5,000)
Renewals: must meet new salary thresholds; no automatic approval for existing holders below MYR 5,000

Processing times have increased to 4–8 weeks for new applications and renewals due to stricter checks. Companies are advised to submit applications 3 months before expiry to avoid gaps in work authorization.

Who Is Most Affected – and Which Roles Remain Strong?

The changes impact most:

Mid-level professionals earning MYR 3,000–5,000 in non-priority sectors (admin, retail, hospitality)
SMEs hiring foreign talent in general office or support roles
Candidates aged 45+ without specialized skills or high salary offers

Roles that remain attractive and easier to approve include senior finance managers, IT architects, petroleum engineers, data scientists, renewable energy specialists, halal industry experts and senior executives in multinational firms – salaries in these fields typically exceed MYR 10,000–20,000.

Practical Advice for Employers & Foreign Professionals in 2026

Employers: review current foreign staff salaries – plan renewals or replacements before 2026 deadlines
Candidates: target roles with salaries MYR 6,000+ to meet basic eligibility
Advertise positions on MyFutureJobs for 28 days – document all local applicants
Prepare strong points-system evidence: unique skills, company training budget, strategic contribution
Consider alternatives: Professional Visit Pass (short-term) or Residence Pass-Talent for top earners
Use licensed immigration agents or consult ESD (Expatriate Services Division) for complex cases

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