The Employment Pass (EP) is a work permit 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.
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.