KUALA LUMPUR - Malaysia will increase the minimum salary requirements for foreign professionals under the Employment Pass (EP) programme starting June 1, 2026.

The new rules will apply to all new and renewal applications across the three Employment Pass categories.

Under the revised framework, EP Category I will require a minimum monthly salary of MYR 20,000, up from MYR 10,000.

For EP Category II, the minimum salary range will rise to MYR 10,000 to MYR 19,999 from the current MYR 5,000 to MYR 9,999.

EP Category III will see its minimum salary increased to MYR 5,000 to MYR 9,999, compared with the current range of MYR 3,000 to MYR 4,999.

The Ministry of Home Affairs has advised employers to review workforce planning and salary structures for foreign knowledge workers to meet the new requirements.

Companies are expected to adjust pay packages and assignment plans to avoid disruptions for employees applying for new or renewed passes.

The changes are part of efforts to align the Employment Pass programme with labour market needs and attract highly skilled professionals to support economic growth.

Authorities said all applications submitted on or after June 1, 2026, must meet the updated salary thresholds.

The move is part of Malaysia’s broader effort to increase local hiring by making it more expensive for companies to employ foreign professionals at lower salaries. 

Analysts say the policy is intended to encourage employers to prioritise Malaysian talent for skilled positions while still attracting highly qualified expatriates who meet the new salary criteria. 

By tightening the minimum wage for foreign professionals, the government aims to balance the needs of economic growth with workforce localisation, ensuring that local workers have greater access to high-paying jobs.