A Guide To Category 2 Malaysian Employment Passes

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 RM5,000 / month. The visa has a maximum validity period of up to 24 months, though it will match the length of the employment contract and 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 two conditions to be eligible to apply for a Category 3 EP:

1. be a registered business entity
2. 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

Eligible employers must also register with Expatriate Services Division (ESD) (which we will cover later).

Expatriate requirements

Your foreign candidate must meet the following standards to qualify as an ‘expatriate’:

• 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

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	60 months	24 months	12 months
Minimum Monthly Pay	RM10,000	RM5,000	RM3,000
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	Cannot bring dependents or hire foreign maid

Our employer’s guide to Malaysian Employment Passes does a deep dive into the topic, but for the purposes of this guide, let’s do a quick comparison of the different categories.

Category 2 vs Category 3

The most defining limitation of Category 3 EPs is the no-dependent policy as it is designed for younger expatriates in junior positions and with lower salaries.

In practice, while younger people may not have children, they may have family members who depend on them, and if your candidate is such a person, the practical solution is to:

• offer them at least RM5,000 per month and apply for a Category 2 EP, or
• find another candidate!

Category 2 vs Category 1

As both allow dependents, the practical question is which is more relevant to the role and salary, as Employment Pass applications are approved when role and salary match the category applied for.

This means:

• positions with senior decision-making with salaries of RM10,000 and up go under Category 1
• anything less in terms of decision-making and salary is a candidate for Category 2

Employers have asked us if they can submit an application for a senior role under Category 2, and our answer is always that ESD will return applications for amendment if dissatisfied, and if they find a clear mismatch they may reject it altogether, in which case it can only be appealed or resubmitted after a year.

In other words, we don’t think it will work, but they’re free to try!

Application process

Visit Immigration’s Expatriate Services Division (ESD) portal and register your company.

From there, here are the steps to applying for your EP:

1. Log into the ESD portal
2. Fill in the required information of expatriates and dependants (if applicable)
3. Fill the position by selecting through the lists at “Position Setup”.
4. Upload all documents as required
5. Submit completed application
6. Status notification will be sent via system
7. If approved, print the approval letter through the system. Applicable Immigration fees will be advised. Visa with Reference (VWR) letter can be collected at MYXpats Centre or ESD Putrajaya, if applicable
8. Passport endorsement can be done at MYXpats Centre, ESD Putrajaya or any Immigration state office once Immigration fees payment is made

We wish you all the best with your application, and if you need help, we’re right here 🙂

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!