A Guide To Category 1 Malaysian Employment Passes (Updated For June 2026)
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!
With the longest validity period of all, a Category 1 Employment Pass (EP) caters to employers hiring expatriates for key senior roles, including foreign company directors and shareholders.
Our guide explains the essentials so businesses know if this is the visa for their hiring needs.
Here’s how we’ve broken it down:
- an overview of key details for EP Category 1
- employer requirements
- expatriate requirements
- how it compares to Category 2 and 3 EPs
- steps in the application process
Let’s begin.
Table of Contents
Overview
A Category 1 EP is used to hire expats for senior roles with a minimum pay of RM20,000 / month. The visa has a potential maximum validity of up to 120 months (though in practice the upper ends are unlikely) and can be renewed indefinitely if the work arrangement continues and requirements are met.
The holder is allowed to bring dependents and hire a foreign maid for the duration of their visa’s validity.
Dependents
The following family members can stay with the principal holder:
- spouse & children under 18 via Dependent Pass
- children 18–25 and parents / parents-in-law via Long-Term Social Visit Pass
Foreign entrepreneurs
This is the visa for foreign entrepreneurs who want to incorporate a company in Malaysia and move here to be the resident director.
Employer eligibility
Employers must meet four conditions to be eligible to apply for a Category 1 EP:
- Be one of the following registered Malaysian business entities:
- Sdn Bhd
- LLP
- society
- statutorily registered professional firm
- Sdn Bhds must meet minimum paid up capital based on foreign shareholding:
- RM250,000 for 100% locally owned companies
- RM350,000 for joint ventures with at least 30% foreign equity
- RM500,000 for 100% foreign owned companies
- Foreign owned businesses must have a valid WRT / USS license
- Must have a valid employer account on Expatriate Services Division (ESD) portal (which we cover below).
Expatriate & role eligibility
A foreigner can qualify as an ‘expatriate’ by meeting Immigration’s definition of ‘skilled foreign talent’ or ‘company shareholder’.
Skilled foreign talent
- Degree and above, with at least 3 years’ experience in the relevant field;
- Diploma, with at least 5 years’ experience in the relevant field;
- Technical Certificate or equivalent, with at least 7 years’ experience in the relevant field
Company shareholder
- have a minimum 30% equity in the company; and
- be an SSM-registered Director / hold a key position in the company
Role
The position must be managerial, executive, or technical, requiring specialised skills not available locally, and which are not in sectors restricted from foreign ownership by KPDN.
Comparing EP categories
As the table shows, Category 1 EPs are designed for long-term arrangements for high-value positions whose holders can truly treat Malaysia as a second home.
| Employment Pass | Category 1 | Category 2 | Category 3 |
|---|---|---|---|
| Contract Duration | 10 years | 10 years (with succession plan) | 5 years |
| Min Monthly Pay | RM20,000 | RM10,000 | RM5,000 |
| Dependent Permissions | Spouse & children under 18 via Dependant Pass Children 18–25 and parents / parents-in-law via Social Visit Pass Can hire foreign maid | Same as Category 1 | Same as Category 1 |
It’s incomparable to Category 3 since the two are meant for completely different types of hires.
However, Categories 1 and 2 are similar enough that we often get enquiries on which to choose, and here’s how we generally help employers decide.
Category 1 vs Category 2 EP
As both allow dependents, the practical question is which is more relevant to the role, as Employment Pass applications are approved when role and salary align with category.
This means:
- positions that clearly reflect senior decision-making with salaries of RM20,000 and up go under Category 1
- anything less in terms of decision-making and salary is a candidate for Category 2
Employers often ask whether they can submit an application for Category 1 candidate under Category 2, and our answer is always that we don’t think it will work, but they’re free to try!
Do note that if ESD finds a clear mismatch may reject it in which case it can only be appealed after a year.
Required documents
New EP applications require the following documents:
- Relevant sector documents (e.g. MIDA, CIDB, etc.)
- Passport (full copy, color)
- CTC academic certificates
- Updated resume / CV
- Employment contract
- Job description on company letterhead
- MyFutureJobs support letter (stamped)
- JTK approval letter
If applying for Dependent Passes simultaneously, prepare documents showing identity and proof of kinship with family members.
Application process & timeline
For employers applying for an EP for the first time, the process typically takes 7 – 8 months and consists of five steps for Category 1 specifically.
| Stage | Details | Estimated Timeline |
|---|---|---|
| 1. ESD Registration | Company profile registration & activation | ~2 months |
| 2. JTK / Support Letter | JTK approval & XPats Gateway submission | ~1 month |
| 3. EP Application | Full documentation submission & review | ~2–3 months |
| 4. Approval & Visa | Approval letter & VDR/eVisa issuance | ~2 weeks |
| 5. Endorsement | Sticker endorsement & ePass issuance | ~2 weeks |
Note: The applicant must NOT be physically present in Malaysia at the time of a new EP application submission, and entering the country during processing may result in rejection.
Good news: Subsequent applications start at Stage 2, reducing follow-up lead times by two months.
Why applications are rejected
Due to the sensitive nature of allowing foreigners to reside long-term in Malaysia, Employment Passes are strictly regulated, we’ve had numerous employers ask us for help after their applications were rejected.
Here are the five main reasons:
- poor handling of regulatory requirements due to confusing multi-agency rules (ESD, JTK, MDEC, MIDA)
- overlooking policy updates and submitting applications out of order
- submitting incomplete or inconsistent documents that are not Certified True Copies
- not following required formatting standards for academic certificates
- misclassifying role / EP category or failing to align job description and salary with immigration expectations
Any one of these mistakes can cause delays or outright rejection, which not only affects this particular hire, but can cause all future applications by the employer to face added scrutiny.
We say this not to discourage you from applying yourself, but to warn you to be mindful of following the right steps, and we wish you all the best with your application 😊
Let MISHU handle your EP application
MISHU’s has been helping businesses in Malaysia secure Category 1 Employment Passes for foreign talents for many years, and if you need help understanding and meeting immigration requirements, get in touch!