PETALING JAYA: A new employment policy for expatriates will come into effect in June 2026, the Home Ministry announced.
“On Oct 17, 2025, the Cabinet agreed to implement a new expatriate employment policy involving the restructuring of salary thresholds for Employment Pass Categories I, II and III.
“This is meant to reduce dependence on foreign labour and to prioritise local talent to fill job vacancies,” it said in a statement on Wednesday (Jan 14).
The ministry said that the policy also introduces a defined duration for expatriate employment, which previously had no specific limit.
“This duration is intended to recognise expatriates with high-level expertise and serve as a guide for employers in planning more structured succession plans involving the local workforce,” it added.
Under the new policy, the minimum salary for Category I expatriates would increase from RM10,000 and above to RM20,000 and above, with a 10-year employment duration.
For Category II, the salary range would be revised from RM5,000–RM9,999 to RM10,000–RM19,999, with a 10-year employment duration and is subject to a succession plan.
The Category III salary range would be raised from RM3,000–RM4,999 to RM5,000–RM9,999.
However, the salary range for expatriates in the manufacturing sector and manufacturing-related services (MRS) is set at RM7,000–RM9,999.
Employment duration under Category III is set at five years and is subject to succession plans.
“All expatriates holding Employment Pass Categories I, II and III may bring dependents.
“The Home Ministry will organise briefing and engagement sessions with all stakeholders, including industry players, employers and relevant agencies, to explain the implementation mechanisms and policy implications,” it said.
