An Overview Of June 2026 Employment Pass Updates
To encourage upskilling of and reliance on our local workforce, the Malaysian Ministry of Home Affairs (MOHA) recently announced three key changes to Employment Pass applications and renewals, namely:
- minimum salary requirements
- maximum visa duration, and
- succession / replacement plan clarity
Scheduled to go into effect starting June 2026, the updates affect all EP categories.
While those seeking full details can refer to ESD’s FAQ, we’ve listed the changes below next to current policy to help employers quickly decide whether to apply ahead of the rollout.
Let’s begin.
Minimum salary requirements
| EP Category | Current Minimum Salary | Revised Minimum Salary |
|---|---|---|
| Category 1 | RM10,000 | RM20,000 |
| Category 2 | RM5,000 | RM10,000 |
| Category 3 | RM3,000 | RM5,000 |
Maximum visa duration
| EP Category | Current Maximum | Revised Maximum |
|---|---|---|
| Category 1 | 5 years | Up to 10 years |
| Category 2 | 2 years | 10 years (with succession plan) |
| Category 3 | 1 year | 5 years (with succession plan) |
Note that categories 2 and 3 mention the need for a succession plan while Category 1 does not.
Replacement plan clarity
For this, we will 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.
It may be that ESD will release official templates or forms to describe replacement plans or leave it to employers to come up with one, but we think it’s quite clear that Category 2 and 3 EP applications must be supported by a plan to eventually fill the role with a local hire.
Since Category 1 is meant for foreign business owners, directors, and C-level suites who are either literally or practically impossible to replace, this requirement doesn’t apply to them.
That’s it from us, and we wish you all the best!
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!