.svg)
.svg)
.svg)
.svg)
.svg)
Copied to Clipboard
Ready to get Started?
Key Takeaways
Who it’s for: Expatriates in managerial, professional, or technical roles with a confirmed job offer from a company registered in Malaysia (via the Expatriate Services Division).
Employer-led process: The Malaysian entity must register with ESD, get the role approved, and apply for the EP on the employee’s behalf—employees can’t apply on their own.
Category-based system: Three categories (I, II, III) with different salary thresholds, durations (up to 5 years), and family benefits; the EP is always tied to the sponsoring employer.
Family friendliness: Category I and II holders can usually bring dependants (spouse and children under 18), which makes offers far more attractive to senior and mid-level talent.
Strategic advantage for employers: EPs are viewed favourably where roles align with Malaysia’s Critical Occupations List, helping companies secure hard-to-find skills in a compliant, structured way.
What is the Employment Pass, and Who is it For?
The Employment Pass (EP) is Malaysia’s main long-term work visa for foreign professionals, managers, executives, and technical specialists hired for skills that aren’t easily found locally. It gives companies a compliant way to bring in global talent for roles that need expertise, continuity, or leadership.
The EP is tied to one employer and contract, with three salary-based categories offering different durations and benefits. Category I and II allow dependants and can run up to five or two years, while Category III is short-term and requires special approval. Employers favor the EP because it offers stability, supports business growth, and helps attract top international candidates, especially when family relocation is involved.
Malaysia is strengthening its focus on talent development with a new 1:3 internship policy for expatriate hires, starting with a pilot in February 2025 and becoming mandatory in January 2026. Companies hiring EP holders must provide structured, paid internships for local students (three for Category I, two for Category II, and one for Category III) capped at 2% of total workforce. 2025 also brings important updates: the fully digital ePASS, strict document requirements, unchanged application fees, and mandatory pass shortening before an expatriate permanently leaves Malaysia.
These policies make the EP a clear, predictable, and future-focused option for companies that need specialized global expertise while contributing to Malaysia’s local talent pipeline.
Basic Eligibility Requirements for the Employment Pass
The Employment Pass (EP) is meant for foreign professionals with a confirmed job offer in Malaysia, working in managerial, executive, or highly skilled technical roles. To qualify, the role must meet minimum salary thresholds for the relevant EP category, be approved as an expatriate position by the Expatriate Committee or relevant authority, and be with a Malaysian company registered with the Expatriate Services Division (ESD).
Employee requirements
- Valid job offer from a Malaysian company registered with ESD
- Role is managerial, executive, or skilled professional/technical
- Meets minimum salary for EP category (such as a Category I, II, or III)
- Relevant degree, diploma, or professional/technical qualification
- Typically 3–5+ years of relevant work experience, depending on seniority
- Clean immigration and criminal record, and medically fit (FOMEMA medical where applicable)
Documents usually required from the employee
- Copy of passport (all pages, with sufficient validity)
- Updated CV/resumé detailing roles and experience
- Educational certificates and professional qualifications (apostilled/authenticated and translated into English if needed)
- Signed employment contract stating job title, salary, and duration
- Recent passport-sized photographs
- Previous Malaysian passes/visas (if applicable)
- Medical examination report (FOMEMA), where required
Documents usually required from the sponsoring employer
- ESD registration approval and active company profile
- Company registration documents (SSM forms, business licence)
- Latest company financials or proof of paid-up capital, and company profile/organisation chart
- Expatriate position approval from the Expatriate Committee or relevant regulator
- Detailed job description and justification for hiring an expatriate (showing skills not readily available locally)
- Signed employment contract and any supporting HR policies (such as a salary structure and benefits)
- For renewals/changes: previous EP details and updated supporting documents (such as a revised contract and salary adjustment letters)
Employer Requirements (for Sponsoring an Employment Pass)
- Be a registered Malaysian entity: The company must be properly registered in Malaysia (such as with SSM) and operating legally in the country.
- Register with the Expatriate Services Division (ESD): You must have an approved, active ESD profile before you can submit any Employment Pass applications.
- Have an approved expatriate position: The role you’re hiring for must be approved as an expatriate post by the relevant authority (such as with the Expatriate Committee or sector regulator).
- Meet minimum salary and role criteria: The job must match one of the EP categories (I, II, or III) in terms of salary, seniority, and job scope (managerial, professional, or highly skilled technical).
- Show a genuine need for foreign talent: You should be able to justify why the role requires expatriate skills that aren’t readily available in the local labour market.
- Maintain good compliance history: The company is expected to have a clean record on tax, immigration, and labour law, and to follow all EP rules.
Step-by-Step Process for Sponsoring an Employment Pass in Malaysia
- Confirm role, salary, and EP category: Define the position (managerial/professional/technical), confirm it meets the salary threshold for Category I, II, or III, and decide the intended duration of employment.
- Register or update your ESD profile: Make sure your company is registered and active with Malaysia’s Expatriate Services Division (ESD) and that all company details, licenses, and key personnel information are up to date.
- Apply for expatriate post approval: Submit an application to the relevant approving body (Expatriate Committee or sector regulator) to have the position approved as an expatriate role, including a clear job description and justification for hiring a foreign employee.
- Collect supporting documents from the employee: Request the candidate’s passport copy, CV, qualifications, experience evidence, and a signed employment contract matching the approved role, salary, and duration.
- Submit the Employment Pass application via ESD: Lodge the EP application online through the ESD portal, attaching all employer and employee documents and paying the applicable processing fees.
- Receive EP approval and complete endorsement/ePASS issuance: Once approved, arrange for endorsement (such as the issuance of the ePASS) and any related passes (Dependant Pass or LTSVP) as needed.
- Onboarding and compliance follow-through: After arrival/activation, keep internal records updated, comply with internship/talent policies, monitor expiry dates, and shorten the pass in ESD before the employee permanently leaves Malaysia.
Employment Pass Processing Time
Average timelines can vary on a case-by-case basis, as follows:
- Company/ESD registration & expatriate post approval: ~2–4 weeks
- Employment Pass application approval: ~1–3 weeks after complete submission
- Endorsement & ePASS issuance: ~3–7 working days once approval is granted
Costs & Fees Employers Are Responsible For
When you sponsor a Malaysia Employment Pass (EP), you’re looking at a mix of government fees and internal costs. Exact amounts vary by nationality, EP duration, and any dependants, but the main cost buckets are fairly consistent and have increased since the 2024 MYXpats fee revision.
Government fees linked to the Employment Pass (core EP + related passes)
- MYXpats / ESD application fee (EP) – Around RM2,000 per EP application since 1 Sept 2024, up from RM800.
- Dependent Pass / LTSVP filing fees – Roughly RM500 per dependant (spouse, children, certain family members) under the latest MYXpats fee schedule.
- Visa-with-reference / entry visa fee – Charged by Malaysian missions abroad and varies by nationality and visa type; usually a modest consular fee per passport.
Health & compliance-related costs
(Usually employer-borne for EP-level hires)
- Medical examination (FOMEMA / panel clinic) – Mandatory health screening for many foreign workers; guided fees are around RM207–217 per exam depending on gender.
- Health insurance – Private medical coverage is often required by company policy or recommended as best practice; premiums vary by age, coverage level, and insurer.
- Document handling – Apostille/attestation, certified translations, and courier costs for academic and professional certificates.
Employer costs vs. employee costs.
What employers typically pay for
- MYXpats/ESD EP filing fee and immigration endorsement fee for the EP holder.
- Government fees for dependant passes where family relocation is part of the package.
- Medical checks and local health insurance needed to keep the EP valid and compliant.
- Some or all relocation costs (flights, temporary accommodation, relocation services, tax briefings), depending on seniority and internal policy.
What employees may pay for (depending on policy)
- Consular visa-stamping fees at the Malaysian embassy/consulate in their home country.
- Personal costs to obtain or legalise supporting documents (e.g., transcripts, police clearances, translations).
- Any optional upgrades (e.g., enhanced insurance coverage beyond the company standard).
Renewal / extension costs
Renewals generally mirror a new EP in structure:
- EP application fee again (currently ~RM2,000 per renewal)
- Endorsement + processing fees based on renewed duration
- Updated medical exam and continued insurance coverage where required
- Renewal of dependant passes on similar fee terms if the family remains in Malaysia
Employer Responsibilities to Ensure Compliance
Key takeaways for employers sponsoring an Employment Pass:
- The employee must work only in the approved role: Job title, duties, salary, and location must match the ESD-approved expatriate post. Any change (promotion, salary adjustment, relocation, restructuring) may require fresh approval or a new EP application.
- The EP is employer-specific; switching employers is not allowed: If the employee moves to another company, the new employer must submit a completely new Employment Pass application.
- Working hours and scope must align with the approved contract: EP holders must work for the sponsoring company only and cannot take on side jobs, freelance work, or part-time activities in Malaysia.
- Report changes promptly: Employers must notify ESD/Immigration of any changes in employment, including early termination, role adjustments, long absences, or salary revisions.
- Mandatory pass shortening upon final exit: If the employee permanently leaves Malaysia, the company must shorten or cancel the EP in the ESD system before departure.
- Maintain complete records for audits: Keep proof of recruitment efforts, justification for hiring an expatriate, employment contracts, working hours, employee contact details, payroll evidence, and all EP-related documents.
- Comply with internship/talent development requirements: Under the 1:3 internship policy (phased in from 2025), companies must provide structured, paid internships tied to the number and category of expatriates employed.
- Penalties for non-compliance can be severe: Companies risk fines, suspension of ESD access, rejection of future EP applications, immigration investigations, and (in serious cases) blacklisting.
Hire Global Talent Your Way with Playroll
Borders shouldn’t hold you back from hiring the right person. Playroll gives you two seamless options to hire globally. If relocation is the goal, our visa sponsorship services take care of everything when it comes to sponsoring an Employment Pass – applications, compliance, and step-by-step support all the way through.
If moving isn’t needed, skip the visa fees, long processing times, and immigration risk with Playroll’s Employer of Record. We employ the candidate in their home country on your behalf, handling payroll, taxes, benefits, and compliance so you can onboard quickly and stay fully compliant: no relocation required. Wherever your next great hire is based, we make it easy to bring them onto your team.
ABOUT THE AUTHOR
Milani Notshe
Milani is a seasoned research and content specialist at Playroll, a leading Employer Of Record (EOR) provider. Backed by a strong background in Politics, Philosophy and Economics, she specializes in identifying emerging compliance and global HR trends to keep employers up to date on the global employment landscape.
Employment Pass FAQs
Can employers sponsor workers on an Employment Pass?
.png)
Yes. Only Malaysian-registered companies with an approved Expatriate Services Division (ESD) profile can sponsor a foreign worker for an Employment Pass. The role must meet the EP salary and skill requirements, and the company must obtain expatriate post approval before submitting the EP application on the employee’s behalf.
What compliance checks or reporting are required from employers?
Employers must keep their ESD profile up to date, maintain accurate records of expatriate staff, and ensure salaries, job titles, and duties match what was approved. You’re also responsible for: observing internship/talent policies (where applicable), renewing passes on time, updating changes (role, location, salary) through ESD, and shortening/cancelling the pass when the employee permanently leaves Malaysia.
What happens if the visa is denied or delayed?
If an Employment Pass is denied, the employer can usually review the rejection reasons, correct any gaps (e.g., missing documents, unclear job justification, salary below threshold), and reapply or appeal where allowed. If processing is delayed, the employer may need to respond to clarification requests from ESD/Immigration, provide additional documents, or adjust timelines for the employee’s start date, work must not begin until the EP (or appropriate interim permission) is approved.
Can I hire the worker as a contractor instead of an employee?
If the person is doing ongoing work in Malaysia under your direction — especially full-time — they will almost certainly need the correct work authorisation, regardless of whether you label them a “contractor.” Calling them a contractor doesn’t remove immigration, tax, or labour obligations. Misclassifying someone who functions like an employee can create tax, labour, and immigration risks. When uncertain, treat the role as employment and obtain the proper permit, or use an employer-of-record or compliant contractor solution designed to manage these risks.
Back to Top
.svg)
.svg)