Malaysia employment pass application

Malaysia Employment Pass Application

As the name goes, Employment pass is the works pass for those who enable an expatriate to get employment with an organization in Malaysia. The pass subject for employment is valid for up to 60 months. The expatriate committee (EC) or relevant authorities must give you approval, for a foreign talent that can fill the position before the issuance of a Malaysia employment pass can be made by the immigrant branch of Malaysia. Expatriates can only work on the given name of the company on the employment pass. In case if the EP holder has moved to someone else, then he/she has to resubmit a new application for a new EP.

Malaysia Employment Pass Application

Employment Pass (EP) is a permit that enables an employee to work with any of the organizations in Malaysia. The duration of the pass varies from a minimum of 12 months to a maximum of 60 months. The duration period depends upon the type of nature of employment; also the need for employment by the hiring organization. The issuance of the pass can only be done by Malaysia Development Corporation (MDeC) in MSC Malaysia. Once you get the approval of employment positions then accordingly with the eligibility of the pass you can apply in the various organizations.

At present Malaysian company has restricted to a limited number of employees for their employment. If any Malaysian company wants to hire any foreign worker then the company has to prove to the government that the skill and potential ability of that person are eligible and have a vital role, it is not the job that can be filled by the local. Have to inform you about that earlier from the immigrant department before a company can proceed with a Malaysia employment pass application.

A company must be sure and should check out to see if it is eligible to apply for an Expatriate Employment pass. The required keys are outlined below:

Share Capital Requirement

  • Equity: Paid-up Capital100% local owned: RM 250, 000
  • A joint venture (minimum foreign equity is by 30%): RM 350, 000
  • 100% foreign-owned: RM 500, 000
  • Companies owned by foreign (foreign equity by 51% or above) and wholesale, retail, and trade (WRT) sectors (mandatory requirement to present valid WRT license, if applicable): RM 1, 000, 000
  • Companies owned by foreign (foreign equity by 51% or above) involved with the sub-sectors on unregulated services are required to refer to the Ministry of domestic trades, the service industry division, co-operatives and consumerism on the application guideline to get hold of approval: RM 1, 000, 000

Types of Employment pass and Minimum Salary Requirements

Generally, there are three types of Employment pass, discussed below:

  • Employment pass (EP) – (category one) – if employees have a contract for employment with any employer for a minimum of 5 years and his/her salary is a minimum of RM 10, 000, can apply for this application.
  • Employment pass (EP 2) – (category two) – if employees have a contract for employment with any employer valid for a minimum of 2 years and his/her salary is a minimum of RM 5, 000 to RM 9, 999, can apply for this application.
  • Employment pass (EP 3) – (category three) – if employees have a contract with an employer that does not precede for more than 12 months and earning a fixed monthly salary between RM 3, 000 to RM 4, 999, can apply for this application.

Approval from Authority is Required 

Applicants that have applied for the EP dependent pass category three will be required to submit a letter to the governance to look for an exemption for the minimum salary requirement of RM 5, 000 from the pertinent governance authority.

Companies are checked completely and are facilitated according to their respective industry sectors. Several agencies support and ensure to get approvals for the expatriate posts to the relevant sectors.

If you get it by the companies that are regulated by an Approving Agency have to present an approval letter from the relevant agency for each Employment Pass application (category one, two, or three).

The company is required to submit the supporting letter from the relevant body, by the companies in unregulated sectors under the purview of a specific regulatory body that is required (category one, two, or three).

Unregulated sectors – Companies in this sector (neither included in the purview of a regulatory body and an Approving agency) are required to present a letter to the Ministry of the Home Affairs to look for an exemption from the minimum salary requirement of RM 500, 000.

For more information to get approval let’s have a look below.

Criteria holding Eligibility for Employment Pass Application

For the skilled workers/ knowledge/ expatriate(s)

  • Degree and above, with at least experience of 3 years in a relevant field
  • Diploma and above, with at least experience of 5 years in a relevant field
  • Technical studies and more knowledge, with at least experience of 7 years in a relevant field

For shareholder(s) 

  • The shareholder must have a minimum equity of 30% in the company
  • Must have SSM-registered director of the company or holds a key position in the company

Cooling-off period requirement

  • If EP three holders have completed working consecutively for 2 or 3 years, must leave the country and have to serve 3 months cooling period, after that you are eligible to apply for EP three again. If you want to convert it to EP one or EP two then you must come up with all exemption.
  • If EP three holders want to change the employer then have to serve for 3 months of cooling-period and then you are eligible for adding a different employer.

Sectors that can not apply EP online

  • Mini markets/ Supermarkets
  • General vendors/ provision stores
  • Fuel stations with the convenience store
  • Convenience store (that opens for 24 hours)
  • New agents and miscellaneous store
  • Permanent pavement store and wet market store
  • Medical hall
  • Other

Information required (personalized employment pass)

Please check you hold with all the required documents:

  • Passport copy
  • Company profile
  • Copy of the company’s phone bill
  • SSM form 9, 24, 49
  • Purchase agreement and latest financial report
  • Copy of local authority license 
  • Another business license
  • Other documents (if requested)

TimeLine

After the submission of the documents, it takes 14 days for completion. Starts from creating an account then submission of Employment Pass online, status notification, and then company activation.