A Guide To Category 2 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 more perks than the previous tier and without the demands of the one above it, a Category 2 Employment Pass (EP) caters to employers hiring expatriates for mid-level technical and managerial roles.
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 2
- employer requirements
- expatriate requirements
- how it compares to Category 1 and 3 EPs
- steps in the application process
Let’s begin.
Overview
A Category 2 EP is used to hire expats for mid-level roles with a minimum pay of RM10,000 / month.
The visa has a maximum validity period of up to 120 months, though in practice this is most commonly issued in 1 – 2-year intervals that can be renewed if the work arrangement continues.
Throughout their stay, the holder is allowed to bring dependents and hire a foreign maid.
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
Employer requirements
Employers must meet four conditions to be eligible to apply for a Category 2 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.’
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
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.
Quick comparison
As the table shows, Category 2 sits in the sweet spot between requirements and benefits.
| Employment Pass | Category 1 | Category 2 | Category 3 |
|---|---|---|---|
| Contract Duration | 120 months | 120 months (with succession plan) | 60 months (with succession plan) |
| Minimum 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 |
As the middle child, Category 2 EPs are most often compared to the other two by employers wondering if they can submit:
- a Category 1 candidate under a Category 2 EP application, or
- a Category 2 candidate under a Category 3 EP application
In both cases, it’s an attempt to avoid the higher minimum salary threshold, and when we are asked about it, our answer is always that we don’t think it will work, but they’re free to try!
Our employer’s guide to Malaysian Employment Passes does a deep dive, but let’s do a quick comparison of the different categories.
Category 2 vs Category 3
Since both Category 2 and 3 EPs allow dependents and require succession plans, what separates them are salary and seniority / role.
Category 3 is for junior positions that heavily lean towards execution, while Category 2 is technically for any role in between the most senior and junior, with increasingly higher management / supervisory demands.
Category 2 vs Category 1
Category 1 is reserved for top positions in a company, namely shareholders, directors, and C-suites – but other key technical positions may qualify as well. Even the application process is different – unlike the other two categories, Category 1 EPs often don’t need to advertise locally first to justify hiring an expat.
Additionally, Category 1 EPs don’t need a succession plan while Category 2 does – for this, we’ll quote ESD’s answer from their FAQ verbatim:
📌 Replacement plan definition
A replacement plan refers to an employer’s structured and clearly defined approach to preparing the local workforce to eventually replace an expatriate’s role within a specified employment period.
This plan includes, among others:
- identification of positions and functions to be transferred to local employees
- training, mentoring, and knowledge transfer from expatriates to local workers
- a reasonable timeframe to ensure local employees are ready in terms of skills and competencies
- operational continuity planning to ensure the transition does not affect productivity or organisational performance
The replacement plan helps employers manage human resources sustainably while ensuring expatriates in Malaysia contribute tangible value to the development of local talent.
Basically, Category 1 candidates are indispensable to the company, while Category 2 candidates are important but ultimately replaceable.
Application process
All applications and renewals are done via Immigration’s Expatriate Services Division (ESD) portal.
For employers applying for an EP for the first time, the process typically takes 7 – 8 months and consists of five steps for Category 2 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. MyFutureJobs | Job advertisement & interview process | ~ 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
Employment Passes are strictly regulated, and Category 2 in particular tends to get extra scrutiny because it’s the most commonly abused by employers trying to sneak in a Category 1 candidate.
We regularly assist employers whose applications got rejected, and besides candidate-category misalignment, here are five main procedural 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, but to warn you to mind your steps 😊
Let MISHU handle your EP application
MISHU’s has been helping businesses in Malaysia secure Category 2 Employment Passes for foreign talents for many years, and if you need help understanding and meeting immigration requirements, get in touch!