PUTRAJAYA, Jan 14 — The government will implement a new expatriate employment policy effective June 1, 2026, which increases the minimum salary thresholds and introduces set employment duration limits for expatriates in Malaysia.

The Ministry of Home Affairs said that the policy aims to prioritise qualified local talent and reduce the nation's reliance on foreign labour, in line with the targets of the 13th Malaysia Plan.

Under the new policy, the salary and employment duration rules for the three Employment Pass categories have been restructured as follows:

• Category I: Minimum salary raised from RM10,000 to RM20,000 per month, with a maximum employment duration of 10 years.
• Category II: Salary range adjusted from RM5,000-RM9,999 to RM10,000-RM19,999, with a maximum employment duration of 10 years (subject to a succession plan).
• Category III: Salary range adjusted from RM3,000-RM4,999 to RM5,000-RM9,999, with a maximum employment duration of 5 years (subject to a succession plan). (A higher minimum of RM7,000 applies to the manufacturing sector).

The ministry explained that the new duration limits are designed to provide employers with a clear framework for developing succession plans involving the local workforce, while still recognising the contributions of highly skilled expatriates.

All expatriates holding Employment Pass Categories I, II, and III will continue to be allowed to bring dependants.

To ensure a smooth transition, the policy will only come into force on June 1, giving employers and industries sufficient time to prepare.

The ministry will conduct briefing and engagement sessions with all stakeholders to explain the implementation mechanisms.