EXPATRIATE EMPLOYMENT PASS: NEW SALARY THRESHOLDS & SUCCESSION PLAN MANDATE
The Ministry of Home Affairs (MOHA) has introduced new expatriate employment rules to strengthen local talent development and reduce reliance on foreign labour. The revised salary thresholds for Employment Pass (EP) holders came into force effective 01 June 2026, followed by a succession plan requirement from 1 January 2027.
Effective 1 June 2026: Revised Employment Pass Salary Thresholds & Duration
| EP Category | Revised Minimum Salary | Employment Duration | Requirement |
| Category I | RM20,000 and above | Up to 10 years | No succession plan required |
| Category II | RM10,000 – RM19,999 | Up to 10 years | Succession plan required |
| Category III | RM5,000 – RM9,999 | Up to 5 years | Succession plan required |
Beyond the revised salary thresholds, the reform also introduces a succession plan requirement, obliging employers to prepare Malaysian staff to eventually take over expatriate roles, effective 01 January 2027. The detailed contents are to be finalized and will be announced on the ESD portal once confirmed. Succession plan submission is not required for applications lodged before 31 December 2026.
Applications are advised to be submitted at least three months before the pass expired to avoid processing delays or compliance risks.
For verification and further details, please refer to the ESD portal under the Announcement section (dated 15/1/26, 26/5/26, and 29/5/26): https://esd.imi.gov.my/portal/latest-news/announcement/
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