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11 June 2026

Malaysia announces transitional concessions for implementation of succession plan and revised salary requirements for certain Employment Passes

On 14 January 2026, Malaysia’s Ministry of Home Affairs (KDN) announced a revised salary policy for EP holders, effective 1 June 2026, following the Cabinet approval on 17 October 2025. The revised policy builds on the existing framework introduced in 2016 and reflects enhancements developed through ongoing engagements with industry stakeholders. It is aligned with the Thirteenth Malaysia Plan, which aims to reduce reliance on foreign labor and prioritize the employment of qualified Malaysian talent. Under the revised framework, minimum salary thresholds for EP categories I, II and III have been increased to MYR 20,000, MYR 10,000 and MYR 5,000 respectively.

A Tax Alert prepared by EY's People Advisory Services, and attached below, provides additional details.

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Attachment

Full text of Tax Alert

Document ID: 2026-1256

 
 

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