New Short-Term Work Pass Category Forthcoming

Malaysia

As of July 15, foreign nationals applying for work passes at the recently-opened MyXpats Center with contracts not exceeding twelve months and whose monthly salaries range from RM 2,500 to RM 4,999 will be eligible for a new pass called Employment Pass (Category III). This is significantly less than the current minimum monthly salary requirement for a standard Employment Pass (EP), which is RM 5,000.

Application Process

Employers seeking to hire foreign nationals under this category will need to obtain an exemption from the minimum salary requirement of RM 5,000 and approval from the Ministry of Home Affairs (MOHA) prior to filing the EP application.  Employers must seek approval on an annual basis. Once approved, the EP application process and required documents are the same as a standard EP application through the Expatriates Services Division.
 
The EP (Category III) can be renewed twice for up to twelve months each time, at the discretion of the authorities. At each renewal, the authorities will reassess the employer’s eligibility.

Category III holders will not be able to sponsor dependents on Dependant’s Passes or Long Term Social Visit Passes, therefore dependents will be required to obtain their own entry rights into Malaysia.

What This Means for Foreign Nationals

Employers can now hire short-term employees under a lesser salary than the standard Employment Pass.

Employers interested in sponsoring foreign nationals under the new work permit category can contact their immigration professional to submit the pre-approval application to the MOHA.

This alert is for informational purposes only. If you have any questions, please do not hesitate to contact the global immigration professional with whom you work at Fragomen or send an email to [email protected].

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