Malaysia Employment Pass Tier Cost Comparison 2026

Malaysia has recently created a shock wave among the talent acquisition and HR managers of expatriates in the fast-paced world of Southeast Asian talent acquisition. As of June 1, 2026, the Ministry of Home Affairs (KDN) is enacting a historic revision of the salary level (in certain instances, doubling the minimum wage to obtain a work permit).

The former RM3,000 entry point is technically gone if you are an employer with a global workforce or a professional who is considering relocating to the Klan Valley. This guide will give you a conclusive Malaysia Employment Pass tier cost comparison 2026, which covers the specifics of how much you will need to have to budget in terms of salary and government charges.

ESD Processing Fees and Mandatory MYX pats.

In addition to the salary, there is also a recent upsurge of the “sticker price” of employment of an expat. The increased MYX pats processing charge 2026 and 8 per cent Service Tax (SST) has to be reflected in companies.

The Total Cost of Endorsement (TCOE)

Immigration endorsement costs plus the processing fees have to be added together when budgeting an application:

Expats Processing Fee: RM2,000 (both first time and renewal applications).
Immigration Presentation fee: RM200 annually (EP sticker fee).
Professional Visit Pass (PVP): Now RM1,200 (increased to RM800).
Dependant Pass (DP) 2026: RM500 + RM50 processing fee.
8% SST: The processing fees of all Expats/ESD include 8% service tax.
Pro-Hint: In case an application fails at the stage of approval, Expats provides a 75% refund policy on the expatriate processing fee as long as no appeal is made.

Labour Market Testing and Quota.

You are forced to go through the requirement of MY Future Jobs advertisement before you can even apply to get the pass.

The 30-Day Rule: Within 30 days, majority positions shall be advertised locally indicating that there is no Malaysian that is good.
Exemption Threshold: Expatriates with monthly salary of RM15,000 and more are automatically exempted of Labor Market Testing.
Expatriates Generation 2026 Projection: The employers should provide their annual quota of expatriates projection by the end of the year through the ESD portal to obtain quota approval of the 12 months ahead.

Operational Roadblocks

Restructuring of EP levels has deplorable consequences of lifestyle and logistics down the line.

EP Category III Dependent Restrictions: EP3 dependents are usually prohibited to bring family members under the 2026 structure. To international recruitment, this makes the new family-friendly standard to be RM10,000 (EP2).
Compulsory Pass Shortening: All pass holders are now required to carry out a compulsory pass shortening and be issued a Check-Out Memo before they can leave Malaysia permanently, which will result in an additional exit compliance burden to HR.
Paid-Up Capital: Before making any EP filings, make sure that your company is registered to comply with the minimum paid-up capital requirement (RM1,000,000 in the case of 100 per cent foreign-owned WRT companies).

FAQ

Do the current EP holders have an immediate obligation to raise their salary?

No. The new thresholds will be used in new applications and renewals that will be submitted on or after June 1, 2026. Nevertheless, once the contract of an employee runs out after this date, he or she should be paid the new tier notification requirements to be renewed.

Could a Category III holder eventually receive a Dependent Pass?

Generally, no. Parents are only given Dependent Passes (DP) or Long-term Social Visit Passes (LTSVP) upon meeting the criteria of having a salary of RM10,000 and above (EP1 and EP2).

What is the ESD Satellite Centre (ESC) in KLIA?

The ESC enables the approved expatriates to have their pass endorsed by skipping visiting the immigration office in Jayapura.

Final Thought

The MDEC/ESD doubling of its salary threshold in 2026 is the biggest change in ten years. The employers have to carry out a workforce reclassification audit by June. When your technical star is already in the RM7,000 bracket, then you might have to count on retroactive pay raises to retain them in the Category II bracket and retain them in their family residency status.

Disclaimer:

The article is informative and educational. It is recommended that one should check out information using reliable sources like the Expatriate Services Division (ESD) of the Immigration Department of Malaysia or MDEC before formulating decisions.