EP Categories 1 vs 2 vs 3: A Definitive Guide
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.
EP categories at a glance
As of July 2026, here are the key details of Malaysia’s three Employment Pass categories including requirements and features.
| Category 1 EP | Category 2 EP | Category 3 EP | |
| Max validity period | 10 years | 10 years | 5 years |
| Minimum pay | RM20,000 / month | RM10,000 / month | RM5,000 – RM7,000 / month |
| Dependents |
|
|
|
| Interviewing local candidates | Not necessary | May be necessary | Necessary |
| Succession plan | Not necessary | Necessary | Necessary |
| Typical use cases | Shareholders, top leadership, and technical experts | Mid-level technical, managerial, and supervisory roles | Junior technical and semi-skilled roles |
Immigration reviews applications holistically, and any misalignment between EP category, salary, and role is likely to cause a rejection. To be honest, the last row explains which you’ll need for your next foreign hire!
But in the interest of full clarity, let’s break it down category by category.
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 RM20,000 / month, and businesses sometimes ask us if they can avoid this salary requirement by applying for Category 2.
To be polite, we typically answer with a ‘probably not’ but a more honest answer would be something along the lines of ‘never in a million years!’
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 RM10,000.
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 salary requirement.
When to go with Category 3
Category 3 Employment Passes are meant for junior roles that come with a minimum salary requirement of RM5,000, or RM7,000 for roles in the manufacturing sector.
In theory, this category could be used for mid-level candidates so long as they are comfortable with the salary and less prestigious job description, but it’s no guarantee and entirely at Immigration’s discretion.
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!
Let MISHU handle your EP application
MISHU’s has been helping businesses in Malaysia apply for Employment Passes for many years, and if you need help understanding and meeting immigration requirements, get in touch!