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MALAYSIA – MDEC Announces Reclassification of Employment Pass Categories

Malaysia Digital Economy Corporation (MDEC) has announced that the Ministry of Home Affairs (MOHA) will implement reclassification of existing EP categories. The proposed change will be made effective on 1 September 2017.

The Employment Services Division (ESD) of the Ministry of Home Affairs announced the same reorganisation in April, but MDEC has only now confirmed that it will also apply to applications for Employment Passes made through MDEC.

Employment Pass Reclassification

From 1 September 2017, the salary threshold to qualify for the EP I category of Employment Pass (EP) will increase from MYR 5000 (about USD 1100) to MYR 10000 (about USD 2200) per month. The applicant will be able to apply for an EP valid for a duration of up to five years, where currently the maximum duration is three years, with two years being the norm.

The EP II category will still be granted for up to two years, and the minimum salary for this category will remain at MYR 5000 per month.

The EP III salary threshold will increase from MYR 2500 to MYR 3000 per month, with no change in the maximum duration of one year with up to two renewals

Background

Malaysia Digital Economy Sdn Bhd (MDEC) processes Employment Passes for Information Communication Technology (ICT) companies and companies registered for Multimedia Super Corridor Malaysia (MSC Malaysia) status.

The Expatriate Services Division (ESD) of the Ministry of Home Affairs (MOHA) is another agency which issue Employment Passes for foreign nationals in Malaysia.

Action Items

  • Companies in Malaysia hiring foreign nationals should take into account the forthcoming reclassification of Employment Pass categories.
  • Check the latest requirements with an immigration specialist.

This news alert was prepared using information provided by Permit Pro and Rabin & Associates.

Peregrine builds software and provides consultancy and training for global immigration management.

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DISCLAIMER: The information contained in this immigration alert has been abridged from laws, court decisions, and administrative rulings and should not be construed or relied upon as legal advice. If you have specific questions regarding the applicability of this information, please contact Peregrine © 2017 Peregrine Immigration Management Ltd.