2026 Malaysia EP Salary Guideline: The June 1st Salary increase heavily
What are the new EP salary thresholds for Malaysia Employment Pass in 2026?
The 2026 Malaysia EP Salary Increase raises the minimum monthly salary for EP Category I to RM20,000 (from RM10,000) and EP Category II to RM10,000 (from RM5,000). EP Category III thresholds increase to RM5,000 (or RM7,000 in manufacturing). These changes take full effect on June 1, 2026.
1. The New EP Salary Guideline
The policy direction is clear: Malaysia is pivoting toward a high-income economy by filtering for high-value global talent.
| EP Category | Old Threshold | New Threshold (June 1, 2026) | % Increase |
| Category I | RM 10,000 | RM 20,000+ | 100% |
| Category II | RM 5,000 | RM 10,000 – 19,999 | 100% |
| Category III | RM 3,000 | RM 5,000 – 9,999* | 67% |
*Note: For the manufacturing and manufacturing-related services sector, the Category III minimum is set at RM 7,000.
2. Why This is a "Signal," Not Just News
This isn’t just a EP salary increase; it’s a government mandate to reduce reliance on mid-level foreign labor. For businesses, this means:
Eligibility Risk: Roles that previously qualified for an EP might no longer meet the criteria.
Mandatory Localization: Companies must now prove that the value brought by an expat justifies a minimum RM10,000–RM20,000 investment.
Audit Pressure: The Expatriate Services Division (ESD) will scrutinize payroll records more heavily to ensure compliance with the new “Salary Cliff.”
3. Strategic Action Plan: What Should You Do Now for EP Salary Increase?
Waiting until June 1st to react will lead to rejected renewals and stalled projects.
Payroll Audit: Review all current EP holders. If their contract ends after June 2026, their renewal must meet the new standards.
ESD Status Check: Ensure your ESD account is updated with the correct paid-up capital to support higher-tier applications (e.g., RM1 Million for foreign firms with WRT).
Role Rethink: Determine if specific roles should be transitioned to local talent or upgraded to meet Category I/II compliance.
How Inpro International Secures Your ESD Plans
Based in Oasis Square, Ara Damansara, we specialize in navigating the “High-Value Talent” era. Our consultancy goes beyond document submission; we provide Immigration Compliance Strategy to help you survive the 2026 shift.
Our Core EP Solutions:
Company ESD Account Strategy: Professional setup and capital structure advisory.
Complex EP Applications: Specializing in Category I & II renewals and resubmissions.
PVP & DP Management: Ensuring technical experts and families are moved legally.
Payroll & Document Review: Pre-submission audits to prevent “Salary Cliff” rejections.
The era of high-value talent has officially begun. Is your company ready?
Contact Our EP Compliance Experts:
📞 Phone/WhatsApp: +6011-6246 8900
📲 WeChat: inprointernational
🏢 Location: Oasis Square, Ara Damansara, Malaysia
Frequently Asked Questions: Malaysia EP Salary Guidelines
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