Malaysia Employment Pass Application
Employment Pass (EP) is a work pass that enables an expatriate to take up employment with an organisation in Malaysia. The pass is subject to the contract of employment (up to 60 months). The Expatriate Committee (EC) or relevant authorities must give approval for the foreign talent to fill a position before the issuance of an expatriate Employment Pass can be made by the Immigration Department of Malaysia.
Expatriates may only work for the company named in the Employment Pass. If an EP holder change employer, the EP holder will needs to resubmit a new application for a new EP.
There are currently restrictions on the number of foreign workers a Malaysian company can employ. If any Malaysian company intends to hire foreigners, then the Company will have to prove to the government that the potential employee and the position are of vital importance and the job cannot be filled by a local. Quota must be requested from the immigration department before a Company can proceed with a work pass application.
A company must check to see if it is eligible to apply for an Expatriate Employment Pass. The key requirements are outlined as follows:
Share Capital Requirement
|100% Local Owned||RM250,000|
|Joint venture (minimum foreign equity is 30%)||RM350,000|
|100% Foreign Owned||RM500,000|
|Foreign-owned companies (foreign equity at 51% and above) operating in the Wholesale, Retail and Trade (WRT) sectors (mandatory requirement to submit valid WRT license, if applicable).|
Please refer to the Ministry of Domestic Trade, Co-operatives and Consumerism for WRT license application guideline
|Foreign-owned companies (foreign equity at 51% and above) involved in the sub sectors on unregulated services are required to refer to the Services Industry Division, Ministry of Domestic Trade, Co-operatives and Consumerism on the application guideline to obtain approval.|
Types of Employment Pass and Minimum Salaries Requirements
There are three types of employment pass which are as follows
– Employment Pass (EP) – for applicants earning a fixed monthly salary of at least RM 10,000 and Applicant must have an employment contract valid for a minimum of 5 years
– Employment Pass – Category II (EPII) – for applicants earning a fixed monthly salary of at least RM 5,000 and up to RM 9,999 and Applicant has an employment contact valid for 2 years
– Employment Pass – Category III (EPIII) – for applicants earning a fixed monthly salary of between RM3,000 to RM4,999 and contract period not exceeding 12 months.
Authority Approval Required
Companies who intend to apply for Category III will be required to submit a letter to seek exemption from the minimum salary requirement of RM5,000 from the relevant governing authorities.
There are several Agencies that are responsible for approving and supporting expatriate posts in the relevant sectors. Companies are facilitated according to their respective industry sectors.
Companies that are regulated by an Approving Agency need to submit an approval letter from the relevant Agency for each Employment Pass application (Category I, II and III).
Companies in sectors under the purview of a specific Regulatory Body are required to submit a supporting letter from the relevant Body for each Employment Pass application (Category I, II and III).
Unregulated Sectors – Companies in unregulated sectors (neither under the purview of an Approving Agency or Regulatory Body) are required to submit a letter to the Ministry of Home Affairs to seek an exemption from the minimum salary requirement of RM5,000.
For more information, please see Approvals Required For Employment Pass Application
Eligible Criteria For Employment Pass Application
- Degree and above, with at least 3 years’ experience in relevant field
- Diploma, with at least 5 years’ experience in relevant field
- Technical Certificate or equivalent, with at least 7 years’ experience in relevant field
- Shareholder(s) must have minimum 30% equity in the company; AND
- Must be SSM-registered Director of the company AND/OR holds key position in the company
Cooling-Off Period Requirement
- EP III holders who has renewed 2 times or 3 years consecutively MUST leave the country and serve 3 months cooling-period to be able to apply for EP III again. Exemption is given for conversion of EP III to EP I/II
- EP III holders who are changing employers MUST leave the country and serve 3 months cooling-period to be able to apply for EP III with different employer
Sectors NOT allowed to apply for Employment Pass
- Supermarket / mini market (less than 3,000 square sales floor area)
- Provision shop / general vendor
- Convenience store (that opens for business 24 hours)
- News agent and miscellaneous goods store
- Medical hall (inclined towards traditional alternative medicines plus general dry foodstuff)
- Fuel station with convenience store
- Permanent wet market store
- Permanent pavement store
- National Strategic Interest
- Textile, restaurant (non exclusive), bistro, jewellery shops
Please ensure you have all the required documents below before proceeding with registration:
- Copy of all company director’s MyKad or Passport copy.
- Company Profile
- Copy of Company’s Phone Bill
- Tenancy Agreement/Sales & Purchase Agreement (S&P)
- e-SSM Printout
- SSM Form 9
- SSM Form 24
- SSM Form 49
- Latest Financial Report
- Copy of Local Authorities License – Lesen Pihak Berkuasa Tempatan (PBT) (if applicable) (such as Business Premises License)
- Other business licenses (Refer to Annex A, or any other supporting documents)
- Exemption letter from minimum salary requirement of RM5,000 (applicable to companies that intend to apply for Employment Pass (Category III) only)
- Other documents specified upon request
*Note: Form 9, Form 24 and Form 49 must be certified true copied by the Companies Commission of Malaysia.
Following the submission of all required documents, it takes fourteen (14) working days for the process to be completed. The company registration process flow is as follows:
Step 1: Create account (register online)
Step 2: Submit application online
Step 3: Application in process by Immigration
Step 4: Status notification
Step 5: Company activation
The processing time may be extended to 3 months or more due to incomplete applications or additional inspection requirement.
Employment of Expatriates in Malaysia
Summary of Immigration Process
Company’s Paid Up Capital Requirements
Requirement to Apply for Expatriate Employment Pass
Approvals Required For Employment Pass Application
List of Positions Not Applicable for Expatriate Positions