The work pass for foreign professionals and founders in Malaysia. We coordinate every step — sponsor company verification, MES or ESD routing, NEEP-compliant salary structuring, succession planning, document preparation, ePass endorsement, and Dependent Pass for your family.
What Is an Employment Pass?
The Employment Pass (EP) is the primary work permit issued by the Immigration Department of Malaysia for foreign professionals employed by a Malaysian company. Issued under the Immigration Act 1959/63, an EP authorises the holder to work in Malaysia for a specified employer in a specified role, for a specified duration.
The EP framework changed substantially in 2026. Two events reshaped how applications are filed and assessed:
- 16 March 2026 — MIDA launched the MIDA Expatriate System (MES), a centralised digital platform for EP, PVP, and Dependent Pass applications for manufacturing and selected services companies under MIDA’s regulatory purview. Other sectors continue through the Expatriate Services Division (ESD).
- 1 June 2026 — The revised New Expatriate Employment Policy (NEEP) came into force, restructuring salary thresholds, employment duration caps, and succession planning obligations across all three EP categories.
Every Horizon Hub EP application from June 2026 onward is filed in full compliance with NEEP and routed correctly between MES and ESD.
EP Categories Under the New NEEP (From 1 June 2026)
The EP framework retains its three-category structure — but salaries, durations, and obligations have all been reset:
Category I (Senior / Strategic Roles)
- Minimum basic salary: RM20,000 per month (up from RM10,000)
- Maximum employment duration: 10 years with the same employer
- Succession plan: not required
- Eligible for Resident Pass-Talent (RP-T) consideration after 3 consecutive years
- Typical roles: C-suite, regional directors, senior technical experts, founder-CEOs
Category II (Mid-Level Specialist Roles)
- Minimum basic salary: RM10,000–RM19,999 per month (up from RM5,000–RM9,999)
- Maximum employment duration: 10 years with the same employer
- Succession plan: mandatory
- Typical roles: middle management, senior engineers, specialist consultants, finance heads
Category III (Skilled / Junior Specialist Roles)
- Minimum basic salary: RM5,000–RM9,999 per month (up from RM3,000–RM4,999)
- Maximum employment duration: 5 years with the same employer (note: shorter cap than Categories I and II)
- Succession plan: mandatory
- MOHA pre-approval no longer required under the new NEEP (previously a delay point)
- Cooling-off period eliminated — re-applications no longer face mandatory waiting time
- Dependents now allowed for applications submitted on or after 1 June 2026
- Typical roles: technical specialists, project staff, mid-tier IT roles
⚠️ Critical clarification — Basic salary only
The salary thresholds apply to basic salary exclusively. Allowances, bonuses, transport, and housing payments are not counted towards the minimum. An expatriate earning RM18,000 in total compensation but only RM9,000 in basic would not qualify for Category I or even Category II. We screen this carefully during the consultation.
Who Qualifies
- Foreign founders and shareholders of a Malaysian Sdn Bhd, sponsored by their own company
- Foreign executives and managers hired by a Malaysian employer
- Specialist technical staff, engineers, and consultants filling roles where Malaysian talent is genuinely scarce
- Intercompany transferees moving from a foreign group entity to a Malaysian subsidiary
- Senior creative, R&D, and digital-economy roles under MDEC, MIDA, or sector-specific approvals
The role must genuinely require foreign expertise. Where the role is straightforwardly available in the Malaysian market, the EP will be denied or downgraded.
Sponsor Company Requirements
The sponsoring Malaysian employer must satisfy structural conditions before any EP can be filed:
For 100% foreign-owned Sdn Bhd companies:
- Minimum paid-up capital: RM500,000 (services) or RM1,000,000 (some regulated sectors)
- Active SSM registration and good standing
- InvestMalaysia registration (for MES applicants) or active ESD account (for non-MES sectors)
- Valid sector-specific licences (WRT, MIDA approval, MDEC status, etc., where applicable)
- Demonstrable Malaysian operations — registered office, lease, banking activity
For Malaysian-foreign JV companies:
- Minimum paid-up capital: RM350,000 (where Malaysians hold at least 50% equity)
- Same SSM and ESD/MES registration conditions
For MDEC-status (Malaysia Digital) companies:
- Different sector-specific paid-up capital thresholds and reduced bureaucracy via the eXpats portal
We confirm your sponsor company meets the requirements before initiating any EP filing — this is the most common point at which weak applications fail.
Documents Required
From the applicant
- Certified passport copy (full document, all pages, valid for at least 18 months)
- Passport-format photograph in MES/ESD specification
- Educational certificates and professional qualifications (notarised; translated if not in English)
- CV / resume detailing relevant experience
- Detailed job description for the proposed Malaysian role
- Police clearance / good conduct certificate from country of residence (where required)
- Medical examination from approved panel clinic (post-approval, before pass endorsement)
- Curriculum Vitae and reference letters where requested
From the sponsoring company
- Active InvestMalaysia or ESD account
- Employment contract specifying basic salary, allowances, role, and duration
- Justification for hiring a foreigner — market shortage analysis, role specification
- For Category II / III: formal succession plan documenting how the role will eventually transition to a Malaysian employee (mandatory)
- Latest audited accounts and Form C tax filing
- Office lease, utility bills, and banking statements demonstrating active operations
- Relevant sector approvals (WRT, MIDA, MDEC, etc.)
Succession plan content (Category II & III)
Per ESD’s published FAQ, a compliant succession plan must include:
- Identification of roles and responsibilities to be transitioned to Malaysian employees
- Named or pipelined Malaysian successor(s)
- Skills development and training programme
- Indicative timeline for transition
- Knowledge transfer and handover documentation framework
There is no prescribed format and no fixed submission deadline — but failure to produce one when requested by MOHA will affect future applications.
Our Process
- Phase 1 — Pre-Application Audit (Day 0). We review your sponsor company structure, paid-up capital, sector classification, and licensing — confirming MES vs ESD routing and the right EP category for your basic salary level. Written recommendation within 24 hours.
- Phase 2 — Sponsor Setup or Verification (Days 1–7). We register the sponsor on InvestMalaysia (MES) or activate the ESD account, where this has not been done. Where paid-up capital is insufficient, we coordinate the increase via your company secretary.
- Phase 3 — Document Collection & Translation (Weeks 2–4). Personal documents notarised and translated as required. Employment contract drafted to NEEP specifications — basic salary clearly stated, role classified to the right category, duration aligned with the new limits.
- Phase 4 — Succession Plan Drafting (parallel, where applicable). For Category II and III, we draft your succession plan to ESD-published FAQ standards — covering transition roles, named successors, training programme, and timeline.
- Phase 5 — Application Submission (Week 4 or later). Filed through Xpats Gateway → InvestMalaysia (MES) or directly via ESD. We respond to government queries on your behalf throughout the review.
- Phase 6 — Approval & ePass Endorsement (Weeks 5–8 typical). Pass approval, ePass endorsement, MyKad / passport endorsement appointment at MyXpats Centre or the issuing immigration office. Medical examination at approved panel clinic.
- Phase 7 — Dependent Pass & Onboarding (Weeks 6–10). Family Dependent Pass applications filed in parallel for spouse and children. We brief you on EP conditions, renewal triggers, and reporting obligations before pass activation.
You receive a project tracker showing every milestone.
Renewals
EP renewals follow the same NEEP framework. Critical points:
- Renewal applications submitted on or after 1 June 2026 must comply with the new salary thresholds — no exceptions, no grandfathering for existing employees
- Renewals may be filed up to 3 months before pass expiry
- A single application can now cover up to 60 months (5 years) — a significant change from the previous 24-month standard
- Existing valid passes continue under their original terms until expiry
- A change of category (e.g., promotion from EP III to EP II) resets the duration clock
- A change of employer also resets the clock
We recommend all foreign founders and HR teams audit their EP register today and model when each holder reaches the 10-year (or 5-year for EP III) ceiling under the new framework.
Why Horizon Hub
- NEEP-current. Every application we file from June 2026 forward reflects the revised thresholds, succession requirements, and duration framework — including the basic-salary-only rule that catches many DIY applicants out.
- MES-fluent. Our team has been operating on the new MIDA Expatriate System since launch. We know the InvestMalaysia portal, the document quirks, and the system’s interaction with MyImms.
- Sector-aware. We confirm whether your sponsor company falls under MIDA’s purview (manufacturing + selected services → MES) or continues through ESD — preventing the most common 2026 application delay.
- Founder-friendly. If you are setting up your own Sdn Bhd to sponsor your EP, we structure both together — paid-up capital, business activity codes, MSIC alignment, and EP application fully synchronised.
- Family relocations under one roof. EP, Dependent Pass, school placements, banking, and accommodation — handled by one project manager.
- Multilingual. English, Russian, Chinese, Arabic, and other major business languages supported.
Frequently Asked Questions
What is the minimum salary for an Employment Pass in 2026?
For applications submitted on or after 1 June 2026, the minimum basic salary is RM20,000 per month for Category I, RM10,000–RM19,999 for Category II, and RM5,000–RM9,999 for Category III. These thresholds apply to basic salary only — allowances and bonuses do not count.
Does the salary include allowances or just basic?
Basic salary only. This is the most common misunderstanding under the new NEEP. Housing, transport, and other allowances are excluded from the threshold calculation — even though they form part of total compensation.
How long can I hold an Employment Pass?
Categories I and II: up to 10 years with the same employer. Category III: up to 5 years. The clock starts from 1 June 2026 (or from the issuance date of the next pass with the same employer, whichever is later) and resets on category change or employer change.
What is a succession plan and when do I need one?
A succession plan is a documented framework showing how an expatriate’s role will eventually transition to a Malaysian employee. It is mandatory for Category II and III sponsorships and must include identified successors, training programmes, and an indicative timeline. There is no prescribed format, but it must be available when MOHA requests it.
Should my company file through MES or ESD?
MES if your company falls under MIDA’s regulatory purview (manufacturing and selected services with valid MITI/MIDA licence categories). ESD for all other sectors. Filing through the wrong system is the single most common reason for delay in 2026 — we confirm your routing before any submission.
Can I apply for an EP for my own Malaysian company?
Yes — this is the most common pathway for foreign founders. Your Sdn Bhd sponsors your EP. The company must meet the paid-up capital threshold for foreign-owned entities (typically RM500,000 for services) and demonstrate active operations. We handle Sdn Bhd registration and EP application together — see Sdn Bhd Registration for the formation step.
Will my existing EP be affected by the new policy?
No. Existing valid EPs continue under their original terms until expiry. However, any renewal submitted on or after 1 June 2026 must comply with the new salary thresholds and duration framework — including succession plan production for Category II and III.
Can my spouse and children come with me?
Yes. EP holders across all three categories (for applications submitted on or after 1 June 2026) may bring eligible dependents on a Dependent Pass. EP III holders whose passes were issued before 1 June 2026 remain under the previous restrictions. See Dependent Pass & Family Visas for full details.
How long does the application take?
MES standard processing: 15 working days from a complete application. ESD timelines: typically 4–8 weeks, depending on category and sector. End-to-end (engagement to ePass endorsement), most clients are operational within 6–10 weeks.
What if my application is rejected?
Rejected applications can be resubmitted immediately under MES — there is no cooling-off period (this is a NEEP improvement). Rejections typically stem from incorrect category classification, basic salary below threshold, weak sponsor company evidence, or an inadequate succession plan. We diagnose and remediate before resubmission.
Can I switch employers on an existing EP?
A change of employer requires a new EP application — your existing pass cannot simply be “transferred”. The duration clock resets with the new sponsor. Some EP holders use the gap to consolidate their dependents on the new pass.
Let’s Get Your Employment Pass Right
Free 30-minute consultation. Written recommendation within 24 hours covering the right EP category for your basic salary, MES vs ESD routing, sponsor company readiness, and document checklist. No obligation.
- ↑ Back to Visas & Immigration Services (parent)
- → Dependent Pass & Family Visas (bringing your family on the EP)
- → Professional Visit Pass (PVP) (alternative for short-term assignments)
- → MM2H Application (residence not tied to employment)
- → SDN.Bhd Registration (sponsor your own EP via your own company)