Malaysia has introduced new Employment Pass rules for foreign workers. Employers must now submit a “change of category letter” for Employment Pass changes. Learn more about the new process and requirements.
Malaysia Introduces New Employment Pass Rules for Foreign Workers in 2025
In 2025, Malaysia will enforce new Employment Pass rules for foreign workers that will impact both employers and expatriates. These changes aim to streamline the process of obtaining and changing Employment Pass categories, ensuring that foreign workers are employed under the correct permits. Here, we will explore the essential updates and requirements you need to know about these new Employment Pass rules.
What is the Employment Pass (EP)?
The Employment Pass (EP) is a work permit that allows foreign nationals to be employed by a company in Malaysia. It is typically tied to a specific employment contract, which can last up to 60 months (5 years). Additionally, Employment Pass holders can apply for a dependent pass for their spouse and children under the age of 18, enabling them to live in Malaysia during the employee’s stay.
Key Changes in the Employment Pass Category Application Process
The Malaysian Immigration Department has introduced critical changes to how Employment Pass categories are managed. Here’s what employers and foreign workers need to know:
- “Change of Category Letter” Submission: Starting January 1, 2025, employers must submit a “change of category letter” when requesting approval to change the Employment Pass category for foreign employees.
- Cancellation of Existing Pass: Before applying for a category change (e.g., from Category 1 to Category 2 or 3), employers must first cancel the employee’s current Employment Pass. This new step is crucial for ensuring a smooth transition.
- Approval Stage Requirement: The “change of category letter” will be required during the approval stage of the Employment Pass application process. This means companies must comply with the new procedure to ensure successful application.
How Employment Pass Changes Affect Foreign Workers
With the new rules, foreign workers in Malaysia may face several adjustments during their employment. Below are the key points to consider:
- Work Restrictions: Foreign workers are only permitted to work for the company listed on their Employment Pass. If they wish to change employers, they must apply for a new Employment Pass.
- Changes to Employment: In case a foreign worker changes job roles or companies, they will need to go through the process of applying for a new Employment Pass that is specific to the new employment contract.
Eligibility for Employment Pass in Malaysia
Before applying for an Employment Pass for a foreign worker, it’s crucial to ensure the following eligibility criteria are met:
- Approval from Expatriate Committee (EC): The foreign worker’s employment and the specified position must be approved by the Expatriate Committee or another relevant authority.
- Correct Documentation: Employers must ensure that all required documentation, including the change of category letter, is submitted in a timely manner.
The new Employment Pass rules for foreign workers in Malaysia, effective from 2025, introduce significant changes to the application and categorization process. Employers must now navigate the added step of submitting a “change of category letter” when requesting a category change, ensuring compliance with the Immigration Department’s updated policies. Foreign workers and employers must stay informed to avoid any disruptions to employment status.
