Three Types of Employment Pass in Malaysia

The Employment Pass (EP) is a work visa or permit that allows expatriates to work in Malaysia. It is mainly offered to experienced or technically skilled workers with specialised work experience and higher wages.

The EP offers employees a contract that enables them to stay and work legally in Malaysia for up to 60 months.

A bearer of an employment pass may work in West Malaysia so long as the employer is registered with the immigration department. One can renew their Employment pass if the necessary conditions are met.

 

Minimum requirements for Employment Pass

Here are the minimum requirements for expatriates applying for the Employment Pass:

• Degree (at least three years of experience in the relevant field), or

• Diploma (at least five years of experience in the relevant field), or

• Technical Certificate or its equivalent (at least seven years of experience in the relevant field).

As for shareholders, they must be appointed as the company's Director or holds a key position in the organisation. 

 

3 Categories of the Employment Pass

These are the three types of EP:

1. Category I: An expatriate with an RM10,000 monthly basic salary and above.

2. Category II: An expatriate with an RM5,000 to RM9,999 monthly basic salary.

3. Category III: A knowledge or skilled worker with an RM3,000 to RM4,999 monthly basic salary.

 

The main differences between the Employment Pass categories

1. Category I

   1. Five years maximum employment contract.

   2. Dependants are allowed.

2. Category II

   1. Two years maximum employment contract.

   2. Dependants are allowed.

3. Category III

   1. Twelve months maximum employment contract.

   2. Dependants are not allowed.

 

RM5,000 minimum salary exemption for Category III application

Before the company applies for a Category III employment pass, it must first receive the Ministry of Home Affairs (MOHA)'s approval to obtain an exemption from the RM5,000 minimum salary requirement. 

This requirement is compulsory for companies that fall under the:

• Regulatory Bodies, or

• The unregulated sectors include business services, oil and gas, and others.

The employer can apply for the exemption online via Expatriate Services Division (ESD) portal. Under setting, select a function for EP-III status.

 

List of Regulatory Bodies based on their Sectors

1. Education:

   1. Ministry of Education

2. Healthcare

   1. Ministry of Health (Traditional & Complementary Medicine)

3. Tourism

   1. Ministry of Tourism and Culture

4. Sports

   1. National Sports Institute, Ministry of Youth and Sport

   2. National Sports Council, Ministry of Youth and Sports

   3. Related Associations

5. Agriculture

   1. Ministry of Agriculture and Agro-based Industries

6. Biotechnology

   1. Malaysian Bioeconomy Development Corporation Sdn Bhd (Bioeconomy)

7. Aviation

   1. Department of Civil Aviation, Ministry of Transport

8. Mining

   1. Department of Mineral and Geoscience, Ministry of Natural Resources and Environment

9. Entertainment & Performance

   1. Unit PUSPAL, Ministry of Communications and Multimedia

10. Construction

    1. Construction Industry Development Board (CIDB)

11. Equestrian

    1. Equestrian Association of Malaysia

 

Features of the Employment Pass based on category

Category I and II

• The EP enables the holder to work in West Malaysia through the hiring company.

• The EP holder's spouse and children (under 18) are eligible for Dependant Pass.

• The EP holder's children (18+ and single) are eligible for the Long-Term Social Visit Pass.

•  The EP holder's parents or parents-in-law can apply for the Long-Term Social Visit Pass.

• The EP holder is eligible to hire a foreign maid or more.

 

Category III

• The EP enables the holder to work in West Malaysia through the hiring company.

• They are not allowed to bring dependants, and 

• They are not eligible to hire a foreign maid. 

 

Employment Pass renewal conditions

Category I and II: 

• Depending on the requirements, the EP holder can be considered for pass renewal.

 

Category III: 

• The EP can be renewed a maximum of two times and is subject to review.

• Those with successful applications must get a visa with reference to entering Malaysia (applicable for countries requiring a visa).

 

Documents required for Employment Pass application

 

For EP application (Categories I, II and III)

1. The latest passport photo.

2. A copy of the passport, including the booklet and cover.

3. A copy of the highest educational certificates.

4. Latest extensive resume.

5. Detailed job description printed on the company's letterhead.

6. A copy of the Employment Contract duly stamped by the Malaysia Inland Revenue Board.

7. If applicable, a copy of the Professional certificate.

8. If any, tax payment receipts. 

9. Upon request, the account Statement from the Malaysia Inland Revenue Board.

10. Other documents are specified upon request.

 

For EP renewal

1. Last three months' wage slips.

2. Latest e-M or e-BE tax filing.

3. Latest EA form.

 

For a change of position

1. Last three months' wage slips.

2. Latest e-M or e-BE tax filing.

3. Latest EA form.

 

For a change of employer

1. The release letter from the former employer in Malaysia.

2. Latest e-M or e-BE tax filing.

3. Latest EA form.

 

 

FAQ

1. Can expatriates apply for an Employment Pass?

Expatriates cannot apply for their employment passes. The hiring company is the one that needs to apply for the Employment Pass. 

First, the company must be registered with the ESD before applying for the Employment Pass. 

The hiring company can make the application online via esd.imi.gov.my.

 

2. What documents are needed for the Employment Pass application?

You can view the checklist in the ESD Online Guidebook.

 

3. How long does the approval process take for the Employment Pass application?

Once the hiring company has submitted all the required documents, the immigration department will process the application within five working days. 

 

Source: Expatriate Services Division, Malaysian Immigration Department

 

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