Global Alerts

FGI UPDATE: This Week’s Summary of Global Immigration News

COSTA RICA: DIMEX Issuance Delays Continue Amid DGME Backlog

Costa Rica’s General Directorate of Immigration and Foreign Nationals (DGME) is continuing to experience significant delays in issuing Resident Identity Cards (DIMEX) for both first-time applicants and renewals. Processing times for Temporary Residence holders have increased substantially, frequently exceeding four months, compared to the previous standard of approximately 30 days after the Photo Appointment. According to DGME, the delays are caused by a growing backlog of applications, increased demand, and reduced staffing levels. While foreign nationals are still considered legally present in Costa Rica without a valid DIMEX card during this period, the extended wait times are creating practical and administrative difficulties. At present, immigration authorities have not provided a timeline for resolving the delays. As a result, prolonged processing times are expected to continue until DGME’s operational capacity improves.

Key Points

• Extended Processing Times: DIMEX issuance now regularly exceeds three to four months after the Photo Appointment. This marks a significant increase from the historical 30-day processing timeframe.
• Affected Applicants: Both new DIMEX applications and renewals are impacted by the delays. Temporary Residence holders appear to be among the most affected groups.
• Primary Causes: DGME attributes the delays to a backlog of pending cases, increased application volumes, and reduced personnel. These combined factors have strained the agency’s processing capacity.
• Legal Status Maintained: Foreign nationals remain legally authorized to stay in Costa Rica even without a valid DIMEX card during the delay period. Immigration status itself is not canceled or suspended due to the backlog.
• No Resolution Timeline: Immigration authorities have not issued an estimated date for returning to normal processing times. The situation is expected to persist in the near term.
• Operational Impact: The delay affects not only immigration documentation but also related administrative processes. Applicants are facing cascading issues across multiple systems.
• Official Updates Ongoing: DGME has released updated validated dates for Photo Appointment procedures via its official platforms. Applicants should monitor these announcements closely.

What Employers and Sponsors Need to Know

• Expect Longer Onboarding Timelines: Employers should plan for extended DIMEX issuance when onboarding foreign workers. Start dates and project timelines may need adjustment.
• Support Documentation Needs: Employers may need to provide letters or confirmations to banks and other institutions. This can help employees navigate documentation gaps.
• Travel Risk Management: Employers should counsel employees on potential re-entry delays. Travel should be planned carefully during the DIMEX waiting period.
• Renewal Planning Is Critical: DIMEX renewals should be initiated as early as possible. Late filings could compound delays and operational disruptions.
• Employee Communication: Clear communication with affected employees can reduce anxiety and confusion. Employers should set realistic expectations about timelines.
• Monitor DGME Announcements: Updates on photo appointment dates and procedural changes may affect planning. Employers should track DGME communications regularly.
• Contingency Planning: Until processing stabilizes, employers should build flexibility into workforce planning. Temporary alternatives may be necessary.

Looking Ahead

• Backlog Resolution Uncertain: DGME has not announced when staffing or processing capacity will normalize. Delays are expected to continue in the short to medium term.
• Potential Policy Adjustments: DGME may introduce procedural changes or digital solutions to manage demand. No such measures have been confirmed yet.
• Continued Applicant Impact: Prolonged delays may increase pressure on applicants and employers alike. Practical challenges are likely to persist.
• Operational Improvements Needed: Long-term resolution will require increased staffing or process reforms. Without these, delays may become the norm.
• Greater Reliance on Interim Proof: Temporary documentation may become more important for daily transactions. Acceptance by institutions may improve over time.
• Increased Scrutiny at Ports of Entry: Immigration officers may continue enhanced verification practices. Travelers should be prepared for additional checks.
• Monitoring Official Timelines: Any future DGME announcements on processing timelines will be critical. Stakeholders should stay informed and ready to adjust plans.

MALAYSIA: Employment Pass (EP) Minimum Salary Requirements Revised; Effective June 1, 2026

Malaysia’s Ministry of Home Affairs (Kementerian Dalam Negeri, KDN), later reaffirmed by the Ministry of Home Affairs (MOHA) on 14 January 2026, has announced significant revisions to the minimum salary requirements and structural rules for Employment Pass (EP) Categories I, II, and III. These changes will take effect on 1 June 2026 and will apply to all new and renewal EP applications submitted from that date onward. The revisions substantially raise salary thresholds, introduce maximum duration limits for all EP categories, and expand Dependent Pass eligibility to all EP holders. 

Key Points

• Effective Date and Scope: All new and renewal EP applications filed from 1 June 2026 must comply with the revised salary thresholds and conditions. Applications submitted before that date are not expressly covered by the new requirements.
• Significant Salary Increases: Minimum base salary thresholds for all EP categories have been increased, in some cases doubling previous requirements. This signals a clear policy shift toward higher-paid foreign knowledge workers.
• Introduction of Maximum Duration Caps: For the first time, all EP categories will be subject to a maximum duration limit. Previously, EP Categories I and II were effectively indefinite.
• Expansion of Dependent Pass Eligibility: Dependent Pass eligibility is now extended to all three EP categories, including EP Category III. This is a notable and positive expansion for lower-paid expatriates.
• Succession Plan Requirements: EP Categories II and III will require a succession plan identifying a local replacement. This introduces a formal localization expectation tied to EP validity.
• Manufacturing Sector Exception: For manufacturing-related services, EP Category III has a higher revised minimum salary range than non-manufacturing roles. Employers in this sector must budget accordingly.
• Pending Operational Guidance: While MOHA has clarified headline policy changes, further implementation details are still awaited, particularly from ESD. Employers should expect additional procedural updates.

Revised Employment Pass Framework (Effective June 1, 2026)

• EP Category I: Minimum salary increases from RM10,000 to RM20,000 and above. Maximum duration is capped at 10 years, with dependents allowed.
• EP Category II: Salary range increases from RM5,000–RM9,999 to RM10,000–RM19,999. Maximum duration is capped at 10 years with a required succession plan, and dependents remain allowed.
• EP Category III: Salary range increases from RM3,999–RM4,999 to RM5,000–RM9,999, with a higher RM7,000–RM9,999 range for manufacturing-related services. Maximum duration increases from 3 years to 5 years with a succession plan, and dependents are now allowed.
• Dependents Defined: Dependents include spouse or equivalent, children, parents, and parents-in-law. This definition applies consistently across all EP categories under the revised framework.
• Duration Changes: EP Category I and II holders move from indefinite validity to fixed maximum durations. EP Category III holders benefit from a longer maximum duration but face stricter localization expectations.
• Renewals Included: Renewal applications are expressly covered by the revised requirements. Employers cannot rely on grandfathering for future renewals after 1 June 2026.
• Strategic Workforce Impact: The revised framework significantly alters cost and planning assumptions for foreign hires. Employers must reassess long-term expatriate deployment strategies.

LATEST KEY SUMMARY

** For manufacturing related services, the EPIII revised min. salary is RM7,000 – RM9,999

**Dependents refer to spouse or equivalent, child(ren), parent(s), and parent(s) in-law

What Employers in Malaysia Need to Know

• Immediate Workforce Planning Required: Employers should review all current EP holders and upcoming renewals to assess compliance with the new salary thresholds. Early planning is essential to avoid failed renewals.

• Budgeting and Compensation Adjustments: Higher salary requirements may require renegotiation of employment contracts. This is especially relevant for EP Category II and III holders.
• Succession Planning Obligations: Employers sponsoring EP Category II or III employees must prepare credible succession plans. These plans may be scrutinized during renewals or audits.
• Expanded Family Eligibility: The extension of Dependent Pass eligibility to EP Category III may increase overall assignment attractiveness. Employers should factor this into mobility and benefits planning.
• Manufacturing Sector Considerations: Companies in manufacturing-related services face higher minimum salary requirements for EP Category III. Sector-specific budgeting adjustments may be required.
• Uncertainty Around Duration Calculations: It is not yet clear whether maximum duration clocks start on 1 June 2026 or from the expatriate’s first EP issuance. Employers should monitor for clarification.
• Compliance Risk Management: Until ESD issues implementing guidance, employers should proceed conservatively. Legal or professional immigration advice may help mitigate risk.

Looking Ahead

• Clarification on Maximum Duration Start Dates: Further guidance is expected on when the EP duration clock begins. This will be critical for long-serving expatriates.
• Details on Succession Plan Timing: Employers are awaiting clarification on when succession plans must be submitted and how detailed they must be. This will affect renewal timelines.
• Handling Failed Localization Efforts: MOHA has not yet addressed what happens if a trained local successor cannot assume the role. This remains a significant practical concern.
• Role vs. Individual Duration Limits: It is unclear whether maximum duration is tied to the expatriate or the role. Future guidance may determine whether changing roles resets duration limits.
• Domestic Helper Eligibility: There is no confirmation yet on whether EP Category III holders will become eligible to hire domestic helpers. Current regulations do not allow this.
• Alignment With ESD Procedures: Once ESD issues its own announcement, procedural alignment may introduce additional requirements or documentation steps.
• Long-Term Policy Direction: These changes suggest a broader move toward higher-skilled, time-limited expatriate employment in Malaysia. Employers should expect continued tightening and localization measures.

In conclusion, Malaysia’s revised Employment Pass framework represents a major shift in expatriate employment policy, raising salary thresholds, limiting long-term stays, and expanding family eligibility. While the MOHA announcement resolves some earlier uncertainties, key operational questions remain unanswered. Employers should act now to reassess compensation structures, succession planning, and long-term foreign workforce strategies ahead of the 1 June 2026 implementation date.

ROMANIA: Major Reforms to Hiring Foreign Workers Proposed

Romania has released a draft ordinance for public consultation that would significantly change how foreign nationals are hired. While the proposal has not yet been adopted and may still be amended, it introduces a centralized, digital system for managing foreign employment through the WorkinRomania.gov.ro platform and increases work and family visa fees. If implemented as drafted, the new framework would especially tighten the rules for standard work permits while leaving highly qualified work permits largely intact.

Key Points

• Centralized Digital Employment System: The draft ordinance introduces a unified, digitized process for employing foreign nationals through the WorkinRomania.gov.ro platform. Registration on this platform would become a general prerequisite for employers seeking to hire foreign workers.
• Changes to Highly Qualified Work Permits: The substantive procedure and documentation for highly qualified work permits remain unchanged. However, employers must still register on the WorkinRomania.gov.ro platform as part of the new centralized system.
• Stricter Rules for Standard Work Permits: Employers would no longer be allowed to hire foreign nationals directly under the standard work permit process. Recruitment would be permitted only through authorized foreign workforce placement agencies under a formal services agreement.
• Expanded Obligations for Placement Agencies: Authorized placement agencies would face extensive operational and financial responsibilities, including periodic compliance checks at employer premises. These obligations also include coordinating or ensuring accommodation and transportation, as well as supporting repatriation costs proposed at €2,000 per employee.
• Shift Toward Highly Qualified Permits
  Standard work permits would be limited to roles listed on an official labor-shortage occupations list, updated every six months by the Ministry of Labour. Given these restrictions, highly qualified work permits such as the EU Blue Card may remain the most efficient and predictable option for employers whose business models allow it, offering greater flexibility and cost certainty.

The content of this article is intended only to provide a general guide to the subject matter. It should not be construed as legal advice. Please contact FGI at info@employmentimmigration.com or (+1) 248.643.4900 for guidance if you have specific questions.