EP Category 1 vs 2: A Definitive Guide
The MISHU team receives enquiries on Employment Pass applications from local employers and foreign business owners daily, and one of the most common questions is:
Does my application fall under Category 1 or Category 2?
Our answer is always based on the seniority of the role, and as a general rule:
- anything at the level of a company director or country manager goes under Category 1
- everything below that goes under Category 2
Often, when our answer is Category 1, the next question is if they can apply under Category 2 to avoid the higher minimum salary, and if you are wondering the same, our polite answer is ‘probably not’.
Immigration only approves expatiate work visas when there is clear alignment between role, candidate background, and EP category – and the corresponding minimum salary!
If that’s all, we wish you a smooth application, but for full clarity read on as we break it down.
Let’s begin.
Category 1 vs 2 at a glance
As of July 2026, here are details of Malaysia’s Category 1 and 2 EPs, including requirements and features.
| Category 1 EP | Category 2 EP | |
|---|---|---|
| Minimum salary | RM20,000 / month | RM10,000 / month |
| Maximum validity | 10 years | 10 years |
| Typical positions | Directors, C-suite executives, shareholders, top leadership | Managers, senior executives, specialists, supervisors |
| Decision-making authority | Company-wide or strategic decisions | Departmental or operational decisions |
| Dependents | Eligible for Dependant & Long-Term Social Visit Passes to bring family over | Same |
| Interviewing locals | Not necessary | May be necessary |
| Succession plan | Not necessary | Necessary |
Some notes:
- a succession plan details how the employer plans to replace the expat with a local within a specified period
- roles paying above RM15,000 can skip the local interview process, making every Category 1 application exempt from this, and potentially a Category 2 application as well depending on the salary
- the local interview process requires posting a job ad on MyFutureJobs for at least 14 days and submitting a Hiring Outcome Report to justify why local candidates were unsuitable
- a foreigner must own at least 30% in a company to apply for an Employment Pass as a shareholder
Alright, now let’s break it down 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.
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!