05 Aug Foreign Worker Permit vs Employment Pass: What Is the Difference?
The terms foreign worker permit and Employment Pass are sometimes used as though they mean the same thing. They do not. Choosing the wrong route can delay hiring and leave a worker without the correct permission to work.
In everyday business language, a foreign worker permit usually means the Visit Pass (Temporary Employment), or VP(TE)/PLKS. An Employment Pass (EP) is a separate pass for an approved expatriate position.
This article focuses on the common pathways in Peninsular Malaysia. Sabah and Sarawak have separate procedures.
The short answer
Use the VP(TE)/PLKS route for operational workers in permitted sectors. It normally involves quota, source-country rules, levy, VDR, FOMEMA screening and annual pass management.
Use the Employment Pass route for an approved professional, managerial, executive or specialised technical position that meets the applicable salary and company requirements.
A job title or salary alone does not decide the pass. The authorities consider the real duties, business activity, company eligibility and need for foreign talent.
Key differences employers should know
| Point | VP(TE)/PLKS | Employment Pass |
| Best suited to | Operational workers in permitted sectors | Approved expatriate and specialised positions |
| Application route | Section 60K, quota/FWeApproval, VDR and Immigration processing | Section 60K/Xpats Gateway, position approval and ESD/MYXpats processing |
| Salary | Minimum-wage and sector rules apply; EP bands do not | Must meet the current EP category salary band |
| Medical and charges | Foreign-worker levy, FOMEMA and applicable visa, bond and insurance | Expatriate application and pass fees; not the standard PLKS levy/FOMEMA route |
| Family | Dependants cannot accompany the worker under normal VP(TE) conditions | Qualifying holders may apply for dependant-related passes |
| Validity and employer | Usually 12 months; transfer requires an approved mechanism | Category-based duration; changing company requires a new application |
Employment Pass salary bands from 1 June 2026
Malaysia’s revised policy applies to new and renewal EP applications submitted from 1 June 2026:
- Category I: RM20,000 and above – up to 10 years
- Category II: RM10,000-RM19,999 – up to 10 years, with a succession plan
- Category III: RM5,000-RM9,999 – up to 5 years, with a succession plan
These are minimum bands and maximum duration frameworks. Meeting the salary level does not guarantee approval.
Which pass should an employer choose?
- Choose VP(TE)/PLKS for an operational role within a permitted sector, source-country and quota framework.
- Consider an Employment Pass for genuine foreign expertise in a position that meets the salary and approval criteria.
If the role sits between the two, review the actual duties and regulator requirements before recruiting. One route should not be used simply to bypass the conditions of the other.
Common mistakes to avoid
- Treating “foreign worker permit” and Employment Pass as interchangeable terms
- Assuming an EP is approved automatically when the salary threshold is met
- Allowing work to begin before the correct pass is issued
Need help choosing the correct route?
Bold Excel Services Sdn. Bhd. supports employers with workforce planning, foreign-worker recruitment and expatriate pass services.
🔗 Contact BoldExcel before recruiting to confirm which pathway best matches the position.
Sources checked (5 August 2026): 🔗 JTKSM foreign-worker employment guidance, 🔗 Immigration Department foreign-worker conditions, 🔗 ESD Employment Pass guidance and 🔗 revised EP salary policy.
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