KUALA LUMPUR – From June 2026, expatriates working in Malaysia will be required to earn a higher minimum salary under revised Employment Pass (EP) rules, a move the government says is aimed at protecting the local workforce and encouraging greater localisation of jobs.
Malaysian Investment Development Authority (MIDA) chief executive officer Datuk Sikh Shamsul Ibrahim Sikh Abdul Majid said the revision is a timely policy shift that reinforces long-standing efforts to prioritise Malaysians for roles that can be filled locally, Bernama reported.
He said companies have for years been required to justify the need to hire expatriates, particularly for positions that are non-technical in nature.
“It has been our policy for many, many years. In fact, when we approved (employment), we looked at the justification, whether or not these positions can be localised.
“Many of the positions can be localised, especially the non-technical positions (for which) we do not wish to (offer) expatriates anymore because locals can do the job,” he told reporters after MIDA’s media appreciation and networking session here.
Also present at the event was MIDA chairman Tengku Datuk Seri Zafrul Abdul Aziz. The session was attended by Malaysian National News Agency (Bernama) chief executive officer Datin Paduka Nur-ul Afida Kamaludin and Bernama editor-in-chief Arul Rajoo Durar Raj.
Sikh Shamsul Ibrahim dismissed concerns that the higher salary threshold could deter foreign investment, describing the revision as overdue, noting that the previous adjustment was made in 2016.
He was commenting on a recent announcement by the Expats Service Centre on the Malaysia Digital Economy Corporation (MDEC) portal, which outlined updated minimum salary requirements for EP Categories I, II, and III as set by the Ministry of Home Affairs.
Under the revised framework, the minimum salary for EP Category I will be increased to RM20,000 and above, from the current RM10,000 and above. For EP Category II, the new range is RM10,000 to RM19,999, up from RM5,000 to RM9,999, while EP Category III will require salaries of between RM5,000 and RM9,999, compared with the current RM3,000 to RM4,999.
All new and renewal EP applications submitted from June 1, 2026 onwards must comply with the revised requirements. Companies have been urged to plan ahead and align their Foreign Knowledge Worker projections to avoid disruptions to future hiring and renewal processes. - January 13, 2026
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