How to Apply for Malaysia’s Employment Pass: A Step-by-Step Guide for Employers

Planning to Hire Foreign Talent?

As an employer in Malaysia, hiring foreign professionals can give your business to the next level.

However, to bring skilled talent onboard, you’ll need to facilitate their Employment Pass (EP) application.

This guide provides everything you need to know as an employer, from the types of Employment Passes to application requirements, new updates, and more. Let’s dive in!

What is an Employment Pass (EP) in Malaysia?

An Employment Pass (EP) is a work permit that lets skilled foreigners work in professional jobs in Malaysia, especially for roles like managers, executives, or technical experts.

The EP connects your job directly to a specific employer and can be valid for up to five years, based on your work contract.

For professionals with high earnings, the Employment Pass (EP) allows them to bring their family members to Malaysia using Dependant Passes or Social Visit Passes.

New Updates for Employment Pass (EP) for Foreigner

Malaysia’s Immigration Department has introduced new updates to improve the Employment Pass (EP) process and ensure smoother applications:

Mandatory cancellation for category changes: Starting January 1, 2025, employers must cancel an existing EP before applying to change its category. Additionally, a "change of category letter" is now required as part of the application process.
Increased fees: The cost of an EP has increased from RM800 to RM2,000. Fees for Dependant Passes and other visa types have also gone up.
Enhanced online systems: The ePPAx system has been upgraded with better features so it is easier and more transparent for both employers and employees to manage applications.

These changes aim to simplify the process, minimize delays, and create a clearer structure for everyone involved.

Types of Employment Passes

Malaysia categorizes Employment Passes into three groups, each tailored to different professional levels and salaries.

1. Category I: For high-income professionals

Category I is for top-tier professionals such as CEOs, technical directors, and project managers.

To be eligible, your employees need to have a monthly salary of more than RM10,000 and a work contract that can last up to 5 years.

This category offers great benefits, including the ability to bring your family members to Malaysia through Dependant Passes and the option to hire domestic helpers.

2. Category II: For mid-level positions

For professionals, such as managers, architects, and lecturers who earn between RM5,000 and RM9,999 per month, this one is best for your employees.

The work contract can be renewed for up to 2 years. Similar to Category I, pass holders can bring their dependents to Malaysia.

3. Category III: For temporary or short-term professionals.

Category III is meant for skilled workers and technicians earning between RM3,000 and RM4,999 monthly.

This pass is for shorter contracts, lasting up to 12 months, and can only be renewed 2 times. Dependents are not allowed for this category.

New Eligibility Criteria for the Employment Pass

To apply for an Employment Pass (EP), your employees need to meet these updated requirements:

Qualifications and experience: Your employees must have either a degree with three years of relevant experience, a diploma with five years of experience, or a technical certificate with at least seven years of expertise.
Confirmed job offer: You must offer your employees a job that matches their skills and qualifications.
Salary criteria: Your employees' monthly salary must meet the minimum amount required for the EP category you are applying for.
Employer eligibility: You as employers must be registered with the Companies Commission of Malaysia (SSM) and fulfill the required paid-up capital. For example, fully foreign-owned companies need a minimum paid-up capital of RM500,000.

Steps to Apply for an Employment Pass

Below are the steps that you need to know for apply for an Employment Pass:

1. Employer’s Responsibilities

The process starts with the employer. They must register with the Expatriate Services Division (ESD) and submit the necessary documents, including the company’s profile, job description, and quota projections.

Once these steps are complete, they apply for approval to hire expatriates.

2. Employee’s Responsibilities

Employees must provide all required documents, such as their passports, certificates, and resumes.

After arriving in Malaysia, a medical examination must be completed to confirm fitness for work.

New Documents Needed for Employment Pass Application

Both employers and employees need to gather all the necessary documents carefully to avoid any delays in the application process. The key documents include:

A valid passport with at least six months remaining before expiration.
Proof of qualifications, such as degrees, diplomas, or certificates relevant to the job.
The signed employment contract or official offer letter from the employer.
Proof of health insurance coverage.
Company registration documents, such as corporate profiles and other relevant certifications.

Mistakes such as submitting an expired passport or incomplete certificates can cause avoidable delays. Be thorough and double-check all documents to keep the application process smooth and efficient.

Costs and Fees Associated with Employment Passes

Applying for an Employment Pass (EP) comes with several costs, which are usually covered by the employer. These costs include:

Application fee: RM2,000 for the Employment Pass.
Dependant Pass fee: RM500 for each dependant.
Medical Examination costs: The cost varies depending on the clinic where the health check is performed.
Processing fee: Typically RM60 for the application.

For employers, budget for these expenses in your plan to avoid any interruptions in the application process.

Processing Time and Approval

The processing time for an EP application depends on the category:

Category I: 1-3 months due to extensive verification.
Category II: 1 month.
Category III: 2-4 weeks.

Delays often happen because of missing documents or a large number of applications being processed.

Start the application process early to avoid unexpected obstacles and carefully review all submissions to ensure everything is complete and accurate.

Renewal and Extension of Employment Pass

Renewing an Employment Pass (EP) is a simple process as long as it’s done before the pass expires.

Both the employer and employee need to submit updated documents, such as medical reports and a valid passport, and pay the necessary renewal fees.

To avoid any disruptions or delays, start the renewal process at least three months before the expiration date.

So, now you know all about the Employment Pass! Hopefully, this article helps you with the application process. Wishing you success in your job and a warm welcome to Malaysia!

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