Announcement: Implementation of New Expatriate Employment Policy

Following the announcement made by MOHA (Ministry of Home Affairs) on 14 January 2026, a new Expatriate Employment Policy as Cabinet’s approval on 17 October 2025 was introduced to restructure the salary rates and employment tenure for Employment Pass holders, which will be officially enforced on 1 June 2026.

As conveyed by MIDA’s Chief Executive Officer, the new policy is intended to encourage companies in Malaysia to prioritise the hiring of local talent for both temporary and permanent positions, while not adversely affecting foreign investment in the country.

Expatriates falling under Employment Pass Categories I, II, and III will be subject to the following new eligibility criteria and tenure limits across all sectors:

EP Category	Revised Policy
Category I	Minimum salary increased to RM20,000, with a tenure limit of 10 years.
Category II	Minimum salary increased to RM10,000 – RM19,999, with a tenure limit of 10 years (requires replacement plan).
Category III	Minimum salary increased to RM5,000 – RM9,999 (or RM7,000 – RM9,999 for specific manufacturing sectors), with a tenure limit of 5 years (requires replacement plan).
Dependents: Expatriates in all three categories are permitted to bring dependents.

*Please note that all new and renewal applications submitted on or after 1 June 2026 must comply with these new regulations.

For more information on the implementation mechanism and transition process, MOHA will organize engagement sessions with industry stakeholders and employers to ensure business continuity. We will provide updates on upcoming engagement schedules organized by the Ministry to explain policy implications and implementation details.

For any clarification, please do not hesitate to contact MIDA at the Foreign Investment Division and Industry Talent Management & Expatriate Division, MIDA, or via email at [email protected].