EP Categories 1 vs 2 vs 3: A Definitive Guide
ESD has announced
significant hikes in EP salary requirements
from June 2026.
Whenever such changes are disclosed, we often get a surge of requests as the deadline nears, so those applying based on current policy should not delay!
Having assisted employers and foreign business owners across industries obtain Category 1, 2, and 3 Employment Passes, deciding which to apply for is quite straightforward.
In a nutshell, applications have the highest chance of approval if the Expatriate Services Division (ESD) sees alignment across three things:
- EP category
- role, and
- salary
Below is a quick guide combining official requirements and our own experience to help employers decide whether a Category 1, 2, or 3 Employment Pass is the most relevant for their hiring needs.
Let’s begin.
When to go with Category 1
Category 1 is reserved exclusively for senior decision-making roles, namely:
- C-suites
- directors
- majority shareholders, and
- other top level leadership positions
These roles come with a minimum salary of RM10,000 / month, and businesses sometimes ask us if they can avoid this salary requirement by applying for Category 2.
Our answer is always ‘probably not’ as there would be misalignment between EP category, salary, and role.
Top leadership positions are quite strict in that they must be under Category 1, which makes the salary non-negotiable, and if that can be met, the application itself is less complicated than the other two categories.
When to go with Category 2
Unlike Category 1 which is limited to top leadership positions, Category 2 is a catch-all / general category for any non-key position that has a minimum salary of RM5,000.
However, just like Category 1, Category 2 also allows bringing dependents.
In practice, this means Category 2 is most commonly used in two situations:
- mid-level management and supervisory roles in between senior decision-makers and junior employees
- junior roles when candidates must bring their family members with them
For the second situation, the employer must of course meet the RM5,000 salary requirement.
When to go with Category 3
Category 3 is also a general catch-all category but comes with a significant limitation of not allowing any dependents as it is meant for junior roles that come with a minimum salary requirement of RM3,000.
In theory, this works for young and single hires for whom this limitation is often irrelevant, and the moment dependents enter the picture, either consider a Category 2 EP or find another candidate!
What happens to mismatched applications
Applications with minor issues such as missing paperwork or unstamped certificates are usually returned for employers to amend and resubmit immediately.
However, if there is a major mismatch, ESD can reject an application entirely in which case it can only be appealed or resubmitted one year later.
That’s why we always make a big deal out of the category, role, and salary aligning, and if you need help deciding, we’d be happy to help 🙂
Let MISHU handle your EP application
MISHU’s has been helping businesses in Malaysia secure Employment Passes for foreign talents for many years, and if you need help understanding and meeting immigration requirements, get in touch!