Malaysia Revises Employment Pass Salary Thresholds: Effective 1 June 2026

The Malaysian government has announced revisions to the minimum salary requirements for Employment Pass (EP) holders, effective 1 June 2026. The announcement was issued by the Ministry of Home Affairs (KDN) and shared through the Malaysia Digital Economy Corporation (MDEC).

Revised Minimum Salary Requirements

All new and renewal EP applications submitted from 1 June 2026 must comply with the updated minimum salary thresholds as follows:

Note: The revised thresholds apply to all new applications and renewal applications submitted on or after 1 June 2026.

Who is Affected?

• New EP applicants applying from 1 June 2026 onwards
• Existing EP holders whose renewal applications are submitted on or after 1 June 2026

Applicants and companies must ensure that the salary offered meets the revised requirements.

Potential Impact on Local Talent

The revision of EP salary thresholds may have implications for the local workforce:

• Higher Salary Requirement for Expatriates
  Roles previously filled by lower-paid expatriates may now be more likely offered to qualified Malaysian candidates.
• Encouragement of Local Employment
  Positions requiring higher expatriate salaries could create opportunities for local professionals to be considered for roles that were previously filled by foreign hires.
• Workforce Planning Alignment
  Employers may adjust hiring strategies to balance the mix of expatriate and local employees, in line with the revised EP requirements.

These outcomes align with the Malaysian government’s objective to attract high-value foreign knowledge workers while encouraging the participation and growth of local talent.

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Source:
https://mdec.my/expats/announcement/revision-to-employment-pass-ep-minimum-salary-requirements-for-expatriates