Application for Employment Pass in Malaysia
All foreign investors, executives, professionals, and highly-skilled workers planning to engage in business activities in Malaysia required an Employment Pass (EP). Essentially, the Employment Pass is issued by the Malaysian government after the employer has received approval from authorities to hire the foreign worker.
The pass is a type of work permit that can be valid for a minimum of one year (12 months) to up to five years (60 months). Foreigners who have received the pass are only required to work under the company that hired them. If, for instance, the foreigner decides to work for a different employer, a new Employment Pass must be submitted and approved.
Since Malaysian companies have limited slots for foreign workers, the employer must prove to the Malaysia Development Corporation (MDeC) that the prospective foreign worker has the necessary skills to fill the vital role that local candidates cannot carry out.
Qualifications for Companies to Apply for Employment Pass in MalaysiaBefore hiring foreigners, a company must ensure that they are eligible to apply for the Employment Pass on behalf of their foreign investors. In order to qualify, a company must obtain the following share capital requirements:
- RM 250,000 for 100% locally owned business.
- RM 350,000 for a joint venture with a minimum of 30% of foreign equity.
- RM 500,000 for a 100% foreign-owned business.
- RM 1,000,000 for foreign-owned companies in the Wholesale, Retail, and Trade Sectors (WRT) with a minimum of 51% foreign equity.
- RM 1,000,000 for foreign-owned companies with a minimum of 51% equity shares that are involved in the sub-sectors of unregulated services such as the service industry, consumerism, and Ministry of Domestic Trades.
Categories of Employment Pass in MalaysiaGenerally, there are three types of Employment Passes granted to foreign workers. These classifications are distinguished based on the minimum salary requirement of the foreigner.
- Employment Pass Category 1 (EP I)
This applies to employees offered a contract of employment to a local organization for five years with a minimum monthly salary of RM 10,000. Under this category, the key positions held by employees include CEOs, executives, directors, and project managers. Once the validity of the pass has ended, the company can renew the pass and extend the employment period.
- Employment Pass Category 2 (EP II)
This applies to employees offered a contract of employment to a local organization for up to two years with a salary ranging from RM 5,000 to RM 9,999 monthly. Under this category, the key positions held by employees include professional and managerial posts in the company, architects, lecturers, and marketing managers. Once the validity of the pass has ended, the company can renew the pass and extend the employment period.
- Employment Pass Category 3 (EP III)
This applies to employees offered a contract of employment to a local organization for a maximum of two years and a monthly salary between RM 3,000 and RM 4,999. Under this category, the key positions held by employees are non-executive positions such as designers, craftsmen, and technologists. These positions require significant experience and a specific set of technical and practical skills. Once the validity has ended, the Employment Pass can only be renewed a maximum of two times.
The Process of ApplicationThe foreigner will not be responsible for the application. Rather, the company that has hired him/her will be in charge of the EP application on their behalf. To understand further, the process to obtain an Employment Pass can be divided into two parts.
- Application for an Expatriate Post
- Submission of Employment Pass Application
The employer requests approval to hire a foreign employee from the Expatriate Committee (EC) or an alternative authorized approval department.
Once the approval is granted, the employer then submits an Employment Pass application to the Immigration Department. This application must contain information regarding the category under which the applicant falls.
Information Requirements for Personalized EP
- Copy of the Passport
- Company Profile
- Copy of phone bill
- SSM Forms 9, 24, and 49
- Most Updated Financial Reports and Purchase Agreements
- Local Authority License
- Business License
- Supplementary Documentation (upon request)
Once the documents have been submitted, the application will be processed for up to 14 days from account creation to submission of EP. During this time, the company will be notified of the application status and the completion of the company activation.
Criteria for Eligible ApplicantsFor Knowledge Expatriates and Skilled Workers, the qualifications are as follows:
- Must have obtained the proper academic credentials required for the position
- Must have at least three years of valuable experience in the field
- Must have taken an executive, managerial or technical position in previous jobs
- Must have met the minimum salary requirements
- Must have a minimum of 30% equity shares in the company
- Must have an SSM-registered directorial position in the company or any other influential position
Restricted Sectors that Cannot Apply for EP
- Provision store or general vendors
- Convenience stores
- Gas stations
- Miscellaneous stores
- Wet market or permanent pavement stores
- Medical Halls
How to Get a Dependent PassSo long as they fall under Employment Pass categories I and II, foreign workers with spouses and children below 18 years old are granted a Dependent Pass (DP) to bring their families to Malaysia. All they need to do is submit the necessary documents that prove family relations, and a DP will be given.
Employment Pass holders under category III who wish to apply to a Dependent Pass must submit an official letter to the government requesting an exemption.
Bestar Consulting helps companies apply and obtain the necessary Employment Passes for their employees with hassle-free procedures.