Malaysia Work Visa Employer Fees 2026

International recruitment of talent in Malaysia to fill the 2026 positions is no longer as easy as it used to be a few years back. Under the salary adjustments of June 1, 2026 and the new structure of fees on the MYX pats, employers would need to maneuver a much greater cost of entry in order to obtain work permits.1

The Malaysia work visa employer fees 2026 are important either to start-up or multinational, as proper HR budgeting and compliance depend on proper understanding of the subject. This guide has subdivided all these costs, such as the big ticket Employment Pass (EP) to the mandatory foreign worker charges.

The 2026 Salary Revision

The updated minimum salary of expatriates Malaysia 2026 has changed radically as of June 1, 2026.2 In case your current employees fail to satisfy these new levels by the time they are due to be renewed, they will be either demoted or stripped of dependant privileges.

• Employment Pass Category I: Minimum RM 20,000 (Less than 5 years).3
• Employment Pass II: RM 10,000 -RM 19,999 (Less than 2 years).
• Employment Pass Category III: RM 5,000 -RM 9,999 (Up to 1 year, renewable).
• Noticeable: The former RM 3,000 salary level of the Category III is removed. All the EP3 applicants are now required to earn at least RM 5,000.

Compliance $ & Operational Employer Costs.

The permit is not the only thing in hiring but the requirements. These non-disclosed costs are required in the activation of ESD account fee 2026 and quota approval.

• MY Future Jobs Advertisement: The majority of jobs will need the 30-day posting to demonstrate the compliance with the local search of recruitment. Although the portal is free, the administrative fee of the Asseveration (Verification) by a labor consultant may vary between RM 200-RM 600.
• Company Projection (Quota) Submission: The Employers have to seek their 2026 Projection (number of expats they require in the year) which begins on December 15 of the year before.4
• Paid-Up Capital: In order to be registered with ESD, companies require some minimum amount of paid-up capital (i.e., RM 1,000,000 in the case of 100 percent foreign owned WRT corporations).5

Foreign Worker Levy and Insurance (Low/Mid-Skilled).

In the case of industries such as Manufacturing, Construction, and Agriculture, the Multi-Tier levy system (MTLS) 2026 is to be used. These are quite different expenses compared to the expatriate expenses.

• Manufacturing/Construction Levy: RM 1,850 per employee.6
• Levy/Agriculture/Plantation: RM 640 per worker.7
• FOMEMA Medical Exam: RM 190-210 per year.
• Insurance (SPIKPA/FWCS): Compulsory health and compensation premiums (RM 120 -150).
• Security Bond: RM 250- 1,500 (varied according to nationality of the worker).8

Total Cost of Employment (TCOE)

Exit compliance should not be left out when determining the Total Cost of Employment (TCOE) of expats Malaysia.

• Mandatory Pass Shortening: The company has to request a Check-out Memo (Free, yet it takes the time of the administration) before an employee ceases to work permanently.
• Tax Clearance (CP21): This is necessary when leaving an employee to clear all the taxes before the employer loses liability.

FAQ

Final Thought

The most influential regulatory change in the recent years is the doubling of MDEC/ESD salary threshold. Employers are expected to audit all holders of category II and III in an imminent manner. Their salaries must not be lower than the new level of RM 10,000 or even RM 5,000 because you have to consider raising their salaries before they renew their visas or they are denied.

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Disclaimer:

The article is both informational and educational. It is recommended that the readers always check the information provided by reputable sources, i.e. the official Expatriate Services Division (ESD) or MDEC, before they make a decision.