What is Malaysia Employment Pass?
The Malaysia Employment Pass (EP) is a work visa issued by the Immigration Department of Malaysia that allows foreign nationals to work legally in the country. It is the most common type of work permit for skilled foreign workers, professionals, executives, and managers who have secured employment with Malaysian companies or multinational corporations operating in Malaysia.
The Employment Pass system is designed to attract foreign talent while protecting the local workforce. Companies must demonstrate that they cannot find suitable Malaysian candidates for the position before hiring foreign workers. The pass is employer-specific, meaning it is tied to the sponsoring company, and holders cannot work for other employers without obtaining a new pass.
Malaysia's Employment Pass is managed through the Expatriate Services Division (ESD) under the Immigration Department. Applications are submitted online through the ESD Online System, and the entire process has been digitized to improve efficiency and transparency. The pass can be issued for periods ranging from 1 to 5 years, depending on the category and contract duration.
Employment Pass Key Facts
Employment Pass Categories
Malaysia offers three categories of Employment Pass, each designed for different salary levels and position types. Understanding the differences between these categories is essential for both employers and applicants to ensure the correct pass is applied for.
Employment Pass Category I (EP1)
The highest tier of Employment Pass for senior executives, managers, and highly skilled professionals earning premium salaries.
Requirements:
- • Minimum monthly salary: RM10,000
- • Contract duration: Up to 5 years
- • Senior management or specialist roles
- • Degree or equivalent professional qualification
Benefits:
- • Bring dependents (spouse & children)
- • Spouse can apply for work permit
- • Longer validity period
- • Easier renewal process
Employment Pass Category II (EP2)
Mid-tier Employment Pass for professionals and skilled workers in various industries with moderate salary requirements.
Requirements:
- • Monthly salary: RM5,000 - RM9,999
- • Contract duration: Up to 2 years
- • Professional or technical roles
- • Relevant qualifications and experience
Benefits:
- • Bring dependents (spouse & children)
- • Renewable upon contract extension
- • Access to Malaysian banking services
- • Tax resident status eligibility
Employment Pass Category III (EP3)
Entry-level Employment Pass for skilled workers in specific sectors where local talent shortage exists. Note: This category has been largely phased out for new applications.
Requirements:
- • Monthly salary: RM3,000 - RM4,999
- • Contract duration: Up to 12 months
- • Limited to specific industries
- • Technical skills certification required
Limitations:
- • Cannot bring dependents
- • Limited renewal options
- • Restricted to approved sectors only
- • Being phased out progressively
Eligibility Requirements
Both the applicant (foreign worker) and the sponsoring company must meet specific eligibility criteria to successfully obtain an Employment Pass. The Immigration Department evaluates applications based on multiple factors to ensure compliance with Malaysia's employment regulations.
Applicant Requirements
- Valid passport with minimum 18 months validity
- Recognized degree or professional qualification
- Relevant work experience (typically 3+ years)
- Job offer from Malaysian company with approved salary
- Clean criminal record and good health
- Age between 27-54 years (general guideline)
Company Requirements
- Registered with ESD Online System
- Minimum paid-up capital requirements met
- Valid business license and SSM registration
- Compliance with local:foreign worker ratio
- Good standing with tax authorities (LHDN)
- Approved expatriate quota from relevant ministry
Paid-Up Capital Requirements
100% Malaysian-owned companies: Minimum RM250,000 paid-up capital. Foreign-owned companies (51% or more): Minimum RM500,000 paid-up capital. Joint ventures: Requirements vary based on ownership structure and industry sector.
Required Documents
A complete application requires documents from both the applicant and the sponsoring company. All documents must be clear, legible, and in English or Malay. Foreign language documents require certified translations.
| Document | Details |
|---|---|
| Passport Copy | Bio-data page + all pages with stamps (color scan) |
| Passport Photo | Recent photo (35mm x 50mm, white background, without glasses) |
| Academic Certificates | Degree/diploma certificates with certified translations |
| Resume/CV | Detailed employment history with dates and responsibilities |
| Employment Contract | Signed contract stating salary, position, duration |
| Company Documents | SSM registration, Form 9 & 24, business license |
| Organizational Chart | Showing applicant's position in company structure |
| Justification Letter | Explaining why foreign worker is needed for the role |
Application Process
The Employment Pass application is submitted by the sponsoring company through the ESD Online System. The process has been streamlined for efficiency, but careful preparation is essential for smooth approval.
Company Registration
Employer registers on ESD Online System and obtains login credentials. Company profile and documents are verified.
Position Approval
Company applies for expatriate position approval, demonstrating the need for foreign talent and that no local candidate is available.
Document Submission
Complete application with all required documents submitted online. Ensure all files meet format and size requirements.
Processing & Review
Immigration Department reviews application. Additional documents may be requested. Processing takes 5-14 working days.
Approval & Payment
Upon approval, payment notification is issued. Employer pays visa fees, levy, and processing charges online.
Visa Endorsement
Employee enters Malaysia and completes visa endorsement at Immigration office. Biometric registration completed.
Fees & Processing Time
Employment Pass fees consist of several components including visa fees, levy, and processing charges. Fees vary based on nationality, pass category, and duration.
| Fee Type | Amount (RM) | Notes |
|---|---|---|
| Visa Fee (1 year) | RM90 - RM500 | Varies by nationality |
| Visa Fee (2 years) | RM180 - RM1,000 | Varies by nationality |
| Processing Fee | RM200 | Per application |
| Levy (Annual) | RM1,200 - RM1,850 | Based on category |
| Multiple Entry Visa | RM100 - RM500 | For travel convenience |
Processing Timeline
Renewal & Cancellation
Employment Pass renewal should be initiated at least 3 months before expiry. The renewal process is similar to the initial application but typically faster if there are no changes to the employment terms.
Cancellation is mandatory when employment ends. The employer must cancel the pass within 7 days of termination, and the employee must leave Malaysia within 30 days of cancellation unless they have obtained another valid pass or visa.
Frequently Asked Questions
Can I change employers while on an Employment Pass?
No, the Employment Pass is tied to the sponsoring employer. If you wish to change jobs, your current pass must be cancelled and your new employer must apply for a new Employment Pass.
Can my family join me in Malaysia?
Yes, EP Category I and II holders can apply for Dependent Passes for their spouse and children under 18. The application is submitted together with or after the EP approval.
Is there an age limit for Employment Pass?
While there's no strict age limit, applicants aged 27-54 have higher approval rates. Those outside this range may face additional scrutiny or require stronger justification.
How long can I stay in Malaysia after my EP expires?
You have 30 days after EP cancellation or expiry to leave Malaysia. Overstaying is a serious offense with penalties including fines, detention, and deportation.