Insights · 2027 Rule Changes · Episode 4: Malaysia Employment Pass
Malaysia Employment Pass 2027: New Salary Floors and the Succession Plan
Since 1 June 2026, a Malaysia Employment Pass needs a basic monthly salary of RM20,000 or more (Category I), RM10,000 to RM19,999 (II) or RM5,000 to RM9,999 (III; RM7,000 in some manufacturing). Time with one employer is capped at 10 years (I, II) or 5 years (III). From 1 January 2027, Categories II and III need a succession plan.
What most pages still say: “Category I needs RM10,000 and Category III RM3,000.”
What’s true since 1 June 2026: the floors are RM20,000 and RM5,000, and new and renewal applications are both assessed on them (MIDA; ESD, Revised Expatriate Salary Policy).
The episode video first aired on 28 October 2026. For the full, regularly updated guide, see Malaysia Employment Pass salary thresholds 2026.
Key facts (as of October 2026)
- Since 1 June 2026, for new and renewal applications: Category I RM20,000 or more, Category II RM10,000 to RM19,999, Category III RM5,000 to RM9,999 (MIDA).
- Basic monthly salary taxable in Malaysia only: no allowances, incentives, bonuses or salary paid outside Malaysia (ESD FAQ Q9).
- Maximum with one employer: 10 years (I, II) or 5 years (III), same employer, position and category (ESD FAQ Q11, Q12).
- Renewals from 1 June 2026 must meet the new floors; the FAQ’s example is a Category III holder on RM3,500 (Q16, Q19).
- Succession plan for Category II and III applications from 1 January 2027; no official template yet (MIDA).
| Category | Basic monthly salary before 1 June 2026 | From 1 June 2026 | Maximum with one employer | Succession plan from 1 January 2027 | Dependants |
|---|---|---|---|---|---|
| Category I | RM10,000 and above | RM20,000 and above | 10 years | Not required | Yes |
| Category II | RM5,000 to RM9,999 | RM10,000 to RM19,999 | 10 years | Required | Yes |
| Category III | RM3,000 to RM4,999 | RM5,000 to RM9,999 (RM7,000 to RM9,999 in specific manufacturing and related services) | 5 years | Required | Passes applied for from 1 June 2026 only |
Watch on YouTube: Malaysia Employment Pass 2027: New Salary Floors and the Succession Plan (85 seconds). Transcript below.
What salary does a Malaysia Employment Pass need in 2027?
The floors in force since 1 June 2026, for new and renewal applications submitted on or after that date (MIDA): RM20,000 or more for Category I, RM10,000 to RM19,999 for Category II and RM5,000 to RM9,999 for Category III, or RM7,000 to RM9,999 in specific manufacturing and manufacturing-related services. An application can be for up to 60 months. What is new in 2027 is the succession plan.
Why do many pages still show RM10,000 and RM3,000?
Because those were the floors before 1 June 2026. The ESD booklet sets out both tables: Category I was RM10,000 and above, Category II RM5,000 to RM9,999 and Category III RM3,000 to RM4,999, with no dependants. A source quoting RM3,000 predates the change.
Basic salary only: do allowances or bonuses count?
No. The booklet and question 9 of the ESD FAQ count only the basic monthly salary taxable in Malaysia. Allowances, incentives, bonuses and salary paid outside Malaysia are excluded. A package that clears the floor only with a housing allowance, or a top-up from a parent company abroad, falls short.
How long can an expatriate stay with one employer?
Up to 10 years in Categories I and II and 5 years in Category III, counted on the same employer, position and category (FAQ questions 11 and 12). A new employer or a new category starts a new count. For people already on a pass, confirm with the ESD how their time is treated before planning around a date.
Do renewals have to meet the new floors?
Yes, and this is what most employers miss. A valid pass need not be reapplied for now, but a renewal submitted on or after 1 June 2026 is assessed on the new floors (questions 16 and 19). The FAQ’s example: a Category III holder on RM3,500 must move to at least RM5,000, or RM7,000 in specific manufacturing roles. The Category III cooling-off period and the Category III minimum-salary exemption application no longer apply. One gain: Category III passes applied for from 1 June 2026 may bring dependants; those issued before may not (question 20).
What is the succession plan, and what should it cover?
From 1 January 2027, Category II and III applications must include one (MIDA, phased implementation). When we checked on 12 October 2026, neither MIDA nor the ESD had published a template. The FAQ lists what it should cover: the roles to be localised, training and knowledge transfer, a timeline, and continuity planning. Until a form appears, write it under those four headings for the specific role and person, well before the renewal.
How does this compare with Singapore on 1 January 2027?
Same day, two different tests. Singapore’s Employment Pass qualifying salary for new applications rises to S$6,000, higher with age and higher in financial services (MOM). Malaysia’s change that day is a document, not a salary: the succession plan. A group hiring in both needs both checks.
What to do before 1 January 2027
- List every expatriate by category, basic salary, position and pass expiry date.
- Check basic salary only: leave out allowances, bonuses and pay from outside Malaysia.
- Flag renewals: a Category III holder below RM5,000 (RM7,000 in specific manufacturing) needs a salary review first.
- Draft a succession plan for each Category II and III role.
- Track time with one employer against the 10-year and 5-year maximums.
- Hiring in Singapore too? Budget new Employment Pass hires from S$6,000.
How does VIVOS run both sides?
With its own company on each side: VIVOS (M) Sdn. Bhd. in Kuala Lumpur and VIVOS Pte. Ltd. in Singapore, an MOM-licensed employment agency. One team tracks each person’s category, renewal date and floor in both countries.
Part of the 2027 Rule Changes series
This is episode 4 of 2027 Rule Changes: What Most Pages Still Get Wrong. Every dated change, with its source, is on the 2026-2027 Rule Changes Tracker. Previous episode: Singapore Corporate Tax YA 2026. Employing through a Malaysian Sdn. Bhd.? See the succession plan checklist for employers. Next episode: coming soon.
Video transcript
Video transcript
What does a Malaysia Employment Pass need now? Category One: a basic salary of twenty thousand ringgit a month. Category Two: ten thousand. Category Three: five thousand. From the first of January 2027, Two and Three also need a succession plan.
I’m Ray Tay, co-founder of VIVOS. Many pages still show the old floors, ten thousand for Category One and three thousand for Category Three. Those changed on the first of June 2026.
Two details catch people out. Only basic salary counts, not allowances or bonuses. And there are now time limits with the same employer: ten years for Categories One and Two, five for Category Three.
Renewals are caught too. Renew after the first of June, and the new floor applies: three thousand five hundred ringgit must rise to five thousand. Good news: new Category Three passes can bring family.
Hiring in Singapore? There, the first of January 2027 lifts the Employment Pass minimum for new applications to six thousand dollars. Same day, two different tests.
So write the succession plan before the renewal, not after. VIVOS runs both sides, with VIVOS in Singapore and VIVOS Malaysia in Kuala Lumpur. Most firms compare countries. VIVOS connects them.
Presented by an AI-generated avatar and voice of Ray Tay, co-founder of VIVOS, with AI-generated motion graphics. Written and fact-checked by VIVOS; facts checked 12 October 2026. General information, not immigration or tax advice.
Frequently asked questions
What is the minimum salary for a Malaysia Employment Pass in 2026?
Since 1 June 2026, the basic monthly salary must be RM20,000 or more for Category I, RM10,000 to RM19,999 for Category II and RM5,000 to RM9,999 for Category III, or RM7,000 to RM9,999 in specific manufacturing and manufacturing-related services. The floors apply to new and renewal applications submitted on or after that date. Before, they were RM10,000, RM5,000 and RM3,000.
Does the Malaysia Employment Pass salary include allowances or bonuses?
No. The Immigration Department’s Expatriate Services Division counts only the basic monthly salary that is taxable in Malaysia. Allowances, incentives and bonuses are excluded, and so is any salary paid outside Malaysia. A package that reaches RM5,000 only with allowances, or with a top-up paid by an overseas parent company, does not meet the Category III floor.
How long can an expatriate stay on a Malaysia Employment Pass with one employer?
Up to 10 years in Category I or II and up to 5 years in Category III. The maximum is counted on the same employer, the same position and the same pass category, so a move to a new employer or into a new category starts a new count. Each Employment Pass application can be for up to 60 months.
What is the Employment Pass succession plan and when does it start?
From 1 January 2027, Category II and Category III applications must include a succession plan, under MIDA’s phased implementation. Neither MIDA nor the Expatriate Services Division had published a template when we checked on 12 October 2026. The ESD FAQ lists what the plan should cover: the roles to be localised, training and knowledge transfer, a timeline and continuity planning.
Do Employment Pass renewals have to meet the new salary floors?
Yes. A renewal submitted on or after 1 June 2026 is assessed on the revised floors. The ESD FAQ’s example is a Category III holder on RM3,500, whose basic salary must rise to at least RM5,000 to renew (RM7,000 in specific manufacturing roles). Holders of a valid pass do not need to reapply now; the new floor applies at renewal.
Can Category III Employment Pass holders bring their family now?
Yes, if the pass was applied for on or after 1 June 2026: under the revised policy, all three categories may bring dependants. Category III passes issued before that date may not. The revised policy also ends the Category III cooling-off period and the application for an exemption from the Category III minimum salary.
Sources and how this guide was verified
- MIDA, Implementation of New Expatriate Employment Policy.
- MIDA, Phased Implementation of Succession Plan Requirement.
- Immigration Department of Malaysia, Expatriate Services Division, Revised Expatriate Salary Policy (pages 2 to 4) and FAQ (questions 9, 11, 12, 16, 19, 20).
- Ministry of Manpower Singapore, Eligibility for Employment Pass.
- All sources checked 12 October 2026.
Related services and insights
- VIVOS Malaysia · Singapore HQ, Malaysia team · Malaysian subsidiary of a Singapore company
- Videos: Singapore HQ, Malaysia Team · Episode 3: Singapore YA 2026
Employing expatriates in Malaysia, or in Malaysia and Singapore?
Send us your team list and we will map renewals and succession plans. Talk to our team or WhatsApp +65 8827 7870.
VIVOS Group is four licensed companies, in Singapore, Malaysia, Hong Kong and the UAE, plus teams in China and India. This episode is served by the first two below.
- VIVOS (M) Sdn. Bhd. (Malaysia): Registration No. 202501057568 (1658974-A) · Kuala Lumpur
- VIVOS Pte. Ltd. (Singapore): UEN 202416468C · ACRA Registered Filing Agent FA20240323 · MOM EA Licence 24S2425 · 14B Stanley Street, Singapore 068733
- VIVOS Corporate Services (HK) Ltd. (Hong Kong): Business Registration No. 80545137 · VIVOS Corporate Services L.L.C. (UAE): Commercial Licence No. 1638200
Reviewed by Ray Tay, VIVOS. Facts checked 12 October 2026. General information, not immigration or tax advice: this page describes what the official sources say, and each case depends on the employee’s category, salary and pass history.
