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MALAYSIA – Reminder: Reclassification of Employment Pass Categories from 1 September 2017

Employers in Malaysia are reminded that, 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 1172) to MYR 10000 (about USD 2345) 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.

The reclassification will take effect at both the MYXpats Centre of the Expatriate Services Division (ESD) of the Ministry of Home Affairs (MOHA), and at Malaysia Digital Economy Sdn Bhd (MDEC), which processes Employment Passes for Information Communication Technology (ICT) companies and companies registered for Multimedia Super Corridor Malaysia (MSC Malaysia) status.

Action Items

  • Employers of foreign nationals in Malaysia should take into account the imminent reclassification of Employment Pass categories.

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

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.