Malaysia – Salary and Passport Update
December 28, 2017
Effective immediately, the salary component allowing only the basic salary will now allow the inclusion of fixed allowances when calculating the total minimum salary.
Criteria on the fixed allowances are as follows:
- Must be paid monthly;
- In cash;
- Stated in the Employment Contract;
- Must be included in the payslips and have the relevant monthly tax deducted.
The change in calculating the salary will allow foreign knowledge workers to meet minimums in their respective employment pass category in order to apply for accompanying dependents.
Employment Pass Type:
- Category 1:
- Minimum salary: 10,000 MYR
- Employment contract up to 5 years
- Accompanying dependents allowed
- Category 2:
- Minimum salary: 5,000 MYR
- Employment contract up to 2 years
- Accompanying dependents allowed
- Category 3:
- Minimum salary: 3,000 MYR
- Employment contract below 12 months
- Accompanying dependents not allowed
Passports must also now be valid for at least 14 months when submitting an Employment Pass application, rather than the current 13 months.