A work permit, or more precisely a work pass, is the official authorisation a foreign national needs to be lawfully employed in Malaysia. A company that plans to hire a foreign professional or manager cannot simply have them start work. It must first obtain approval for the company and the position, and then apply for the appropriate pass for the employee.
For most professional and managerial roles, the usual route is the Employment Pass (EP), which is generally tied to the employment contract.
What are the Employment Pass categories?
EPs are generally divided into categories by salary and contract length (Category I, II and III), which differ in minimum salary and maximum validity period. The current thresholds took effect on 1 June 2026. Besides the EP, there are other passes, such as the Professional Visit Pass (PVP), for short-term assignments or specific situations. The exact categories and conditions follow the latest rules of the Immigration Department of Malaysia (JIM).
What conditions must a company meet before applying?
- The company must be a legally registered entity and may need to meet a minimum paid-up capital requirement (depending on the industry and the level of foreign equity)
- The intended position must meet the eligibility and salary thresholds for hiring a foreign national
- Applications are generally made through official channels such as the Expatriate Services Division (ESD)
What other obligations come with hiring foreign staff?
Obtaining the pass is only the first step. Once a foreign employee starts work, the employer must also complete the related tax and social security registrations, some of which fall under Employees Provident Fund (EPF) and Social Security Organisation (SOCSO) rules. It can be useful to assess hiring plans at the company registration stage, so that pass applications are not delayed because the company's capital or structure does not meet the requirements. We help companies plan and handle work pass applications and the related paperwork.
This content is for general reference only and does not constitute legal or tax advice. For your own situation, please book a consultation so that GXY's advisory team can advise on your actual circumstances. Last updated: 20 August 2026.
