EY refers to the global organization, and may refer to one or more, of the member firms of Ernst & Young Global Limited, each of which is a separate legal entity. Ernst & Young Global Limited, a UK company limited by guarantee, does not provide services to clients.
Recent Searches
Transitional concessions for implementation of succession plan and revised salary requirements for certain Employment Passes
Following Malaysia’s 14 January 2026 announcement on revised Employment Pass (EP) salary requirements effective 1 June 2026, both the Expatriate Services Division (ESD) and Malaysian Digital Economy Corporation (MDEC) have introduced transitional concessions benefiting select employee groups. These include:
- A postponement of the succession plan implementation date for EP category II and III expatriates to 1 January 2027; and
- An extension of the current salary thresholds for EP category III expatriates performing roles requiring native or near-native language proficiency within MDEC-regulated Global Business Services (GBS) companies, until 1 June 2027.
The succession plan-related concession applies across all Malaysian immigration adjudicating authorities, such as ESD, MDEC, Iskandar Regional Development Authority (IRDA) and Malaysian Investment Development Authority (MIDA). The salary thresholds-related concession, however, is specific only to MDEC-regulated companies and all other companies under ESD, IRDA and MIDA must fully comply with the revised requirements from 1 June 2026.
A Tax Alert prepared by EY's People Advisory Services, and attached below, provides additional details.