- Additional Guidelines Implemented for Multimedia Super Corridor-Malaysia Employees and Their Dependents
- April 13, 2015
- Law Firm: Fragomen Del Rey Bernsen Loewy LLP - New York Office
- Following the minimum salary level increase for foreign nationals working in Multimedia Super Corridor-Malaysia (MSC-Malaysia) status companies, the Immigration Department has amended certain requirements for foreign nationals whose salaries do not reach the minimum level. The maximum duration of the Employment Pass (EP) for such foreign nationals has been capped at six years, and dependents can now renew their stays.
Duration of Employment Pass
Where the monthly salary of a foreign national that a MSC-Malaysia status company intends to hire is below RM5,000, the maximum duration of the EP is now two years, with two additional two-year extensions. Previously, the maximum duration of such an EP was three years without renewal limits.
Dependant’s Pass Changes
Foreign nationals working in MSC-Malaysia status companies whose monthly salary is below RM5,000 and who had their EP applications approved or obtained an EP endorsement on or before December 31, 2014 can apply for a new Dependant’s Pass for their dependents, which can be subsequently renewed twice. Such foreign nationals seeking to renew a Dependant’s Pass can apply for one subsequent renewal.
Previously, dependents could not apply for or renew their Dependant’s Pass if the principal applicant’s minimum salary was not met.
(It was previously reported that foreign nationals working in MSC-Malaysia status companies whose monthly salary is below RM5,000 and who had their EP applications approved or obtained an EP endorsement on or before December 31, 2014 could apply for a new Dependant’s Pass or Long Term Visit Pass (Social) (LTSVP) for their dependents. Based on a recent notice by the Multimedia Development Corporation, the Immigration Department no longer issues LTSVPs for dependents in such cases).
What This Means for Employers and Foreign Nationals
Employers should track the six-year maximum duration for their EP. MSC-Malaysia status employers who wish to retain foreign nationals past the six-year maximum stay must increase the monthly salaries of foreign employees who do not already earn the minimum amount.
Foreign employees working in MSC-Malaysia status companies who have dependents should benefit from the renewal opportunity for their dependents’ stays. Such foreign employees should consult their immigration professional to determine whether their dependents are eligible for renewed stays.
As was previously advised, employers seeking to hire affected foreign nationals should either only hire foreign nationals who meet the minimum salary requirement or should comply with the minimum salary requirement.
Employers that cannot comply with the new minimum salary requirement are advised to apply for EPs for employees and advise dependents seeking renewals to leave Malaysia before their passes expire to avoid overstay fines.
Affected foreign nationals with school-age children may be able to apply for Students’ Passes for their children and LTSVPs for the accompanying spouse and children who are not school-aged.
Affected foreign nationals should consult their immigration professional to determine the best option.