8 June 2017

MALAYSIA: Employment Pass reclassification

The Malaysia Digital Economy Corporation (MDEC) has announced that the Ministry of Home Affairs (MOHA) will implement reclassification of existing EP categories effective 1 September 2017.

How does this affect the client?

Per 1 September 2017, the Employment Pass (EP) salary threshold will increase from MYR 5,000 to MYR 10,000. The maximum duration of the EP will increase from three years to five years. The EP II category will remain to have a maximum duration of 2 years and the minimum salary threshold will remain at MYR 5,000 per month. The EP III salary threshold will increase form MYR 2,500 to MYR 3,000 per month but the maximum duration of one year with up to two renewals will not be changed. 

 This reclassification of the employment pass will affect all companies under MSC or ICT status who are submitting employment pass application to MDEC. Employers may see increased costs to meet the new salary requirements.




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