Quick answer: From 1 June 2026 the minimum basic monthly salary for an Employment Pass is RM5,000 for Category III, RM10,000 for Category II and RM20,000 for Category I, and the Category III salary exemption no longer applies. If the planned salary is below RM5,000, the post does not qualify as an Employment Pass under the policy. The realistic options are to raise the basic salary to the minimum, restructure the package so basic salary reaches it, review whether another pass type fits a short engagement, or hire locally.
- Minimum basic salary: RM5,000, RM10,000 and RM20,000 by category.
- Category III exemptions no longer apply from 1 June 2026.
- Allowances, bonuses and incentives do not count toward the minimum.
- Raise the basic salary, review the pass type or hire locally.
- A short-term expert may fit a Professional Visit Pass instead.
What the Policy Says
| Point | Position |
|---|---|
| Minimum | RM5,000 for Category III, RM10,000 for Category II, RM20,000 for Category I |
| What counts | Basic monthly salary taxable in Malaysia |
| What does not count | Allowances, bonuses, incentives and salary paid outside Malaysia |
| Exemption | Category III minimum salary exemption applications no longer apply from 1 June 2026 |
Your Options
| Option | What it involves | Watch for |
|---|---|---|
| Raise the basic salary | Move the basic monthly salary to the minimum | Payroll cost and fairness to the existing team |
| Restructure the package | Shift allowances into basic salary | Total cost and tax |
| Change the pass type | A Professional Visit Pass suits a short-term expert paid by an overseas employer | 12-month maximum and conditions |
| Hire locally or remotely | Fill the role in Malaysia or from overseas | Fit for the role |
| Delay and re-plan | Wait until the role can carry the salary | Business timing |
A Worked Example
An offer of RM4,000 basic plus RM2,000 of allowances is RM6,000 in total but only RM4,000 in basic salary, so it falls below the Category III minimum of RM5,000. Raising basic salary to RM5,000, with allowances reduced, meets the test. The employer should model the effect on payroll cost before the offer is revised.
Mistakes
Counting allowances
Only basic salary counts.
Expecting an exemption
It no longer applies for Category III.
Submitting anyway
A below-minimum application risks rejection and a lost fee.
Need a pass sorted out? WhatsApp us. We will check your case before you apply.
How We Help
What we handle for you
Before you apply
- Check that your company meets the requirements and that the post and salary fit the right category.
- Prepare your business plan and financial plan from your company idea or business model, where the application needs one.
Application
- Prepare and submit the pass application and respond to Immigration's queries.
Why companies choose us
End-to-end under one roof
- We handle company incorporation, accounting and payroll as well as expatriate pass applications, so your structure, payroll and hiring plan stay aligned.
- The company is set up correctly from day one.
We check before you invest
- We confirm eligibility, including whether you can hire the expatriates you need, before a foreign investor decides to incorporate in Malaysia.
- Neutral Consulting PLT is a Kuala Lumpur firm led by a Managing Partner who is a member of the Malaysian Institute of Accountants.
Frequently Asked Questions
Quick answers.
What if the salary is below the Employment Pass minimum?
The post does not meet the policy. Raise the basic salary to the minimum or consider another route.
What is the lowest Employment Pass salary?
RM5,000 basic monthly salary for Category III from 1 June 2026, or RM7,000 for manufacturing-related roles.
Can I get an exemption?
Category III minimum salary exemption applications no longer apply from 1 June 2026.
Do allowances count?
No. Only basic salary counts.
Can I move allowances into basic salary?
Yes. The test is the basic salary stated in the application.
Can a Professional Visit Pass work instead?
For a short-term expert paid by an overseas employer, up to 12 months, subject to the pass conditions.
Does the rule apply to renewals?
Yes, for renewals received on or after 1 June 2026.
Is salary paid overseas counted?
No. The salary must be paid in Malaysia.
Is the manufacturing band different?
Yes. RM7,000 to RM9,999 for Category III in manufacturing and manufacturing-related services.
Will Immigration check payslips?
Renewals require the latest payslips and tax documents.
What if I submit below the minimum?
The application risks rejection.
Can you advise on the right package?
Yes. We model payroll and the pass requirements together.
Sources
Official sources
- Immigration Department (ESD), Revised Employment Pass Salary Policy effective 1 June 2026
- Immigration Department (ESD), Revised Expatriate Salary Policy FAQ
- Immigration Department, Professional Visitor Pass (Expert)
- MIDA, Employment Pass guidelines (1 June 2026)
This page is general information, not legal advice. Agencies change their requirements, so confirm the current rules with the Immigration Department (ESD) and MIDA, or with us, before you act. Checked November 2026.
Talk To Us Now
Hiring or relocating an expatriate? We will check your case first. All consultations are by video call.