Expat work permit in Malaysia

Work permit

Companies in Malaysia are only allowed to hire foreigners when they can prove that Malaysians aren't able or willing to do that job. Exceptions are made in case of strategic jobs such as management, finance, etc. This is because nowadays Malaysians are educated well so you need to show good qualifications; at least a bachelor, preferably a masters degree with some years of work experience.

When you find a job you to get your employer to file a permit application with the local government in Malaysia. There are several terms that you have to meet in order to be eligible for a work permit. You have to be at least 27 and earn a minimum of RM5000 per month. The company that wants to put you under contract has to have enough paid up capital, the actual amount of capital in money that has been contributed towards the company. This is RM200.000 in case of a local company, RM350.000 for a part foreign ownership and RM500.00 in case of full foreign ownership.

If you are offered a contract of over RM8000 per month then your work permit application will instantly approved and immigration guarantees that you will have your work permit within one week. Highly-skilled expatriates are able to apply for a special 10 year Visa that is tied to the actual individual instead of the company hiring the expatriate. With this new type of residence pass the government of Malaysia aims to attract and retain top talent in the country.

Usually a permit is requested for 1 or 2 years, in a few cases 3 or even 5 years. After that period your employer will need to request the renewal of your permit. With a work permit you are allowed to work in Malaysia. With a work permit it is possible to open a bank account in Malaysia; it is even possible to get a mortgage. Expatriates pay taxes in either their home country or in Malaysia during employment. In most cases Malaysia has an agreement with countries to avoid double taxation. Highest tax percentage in Malaysia is 26 percent. If you live and work in Malaysia, make sure you keep your receipts for your tax return.

Malaysia has a pension scheme (EPF), where a small portion of the monthly wages is put aside for retirement. Employers are required save this money for their local employees, but it does not apply to foreign expatriates. Often this amount is accumulated onto the monthly salary. If not you can claim it yourself.

Salary in Malaysia

Expatriates that are brought in by their employers on an expat package often earn well over RM10.000 per month. Most get all kinds of extras included in the packages, like one-time relocations costs, a car allowance and sometimes even a start up allowance (to buy suits and such). There are always stories of expats that earn around RM50.000 per month, but this is usually an exception to the rule (only a lucky few earn this much). With RM10.000 per month you can live a decent live in Malaysia. If your wife or husband is not earning her/his own salary then this will be a pretty normal income for foreigners in Malaysia. You can rent a nice condo and enjoy western things every once a while. If you earn around RM15.000 to RM20.000 a month; you can live life to the fullest in Malaysia. You can rent a upper class condominium and eat daily in fancy restaurants. Most are not so lucky however. Locals usually earn somewhere between RM2.000 and RM4.000 per month (non-management). People that work in restaurants, shops, food courts often earn a fraction of this (usually less then RM1000 per month). If you are here on a local package, chances are that you will earn somewhere between RM5000 and RM8000 per month. Of course highly skilled people with years of experience will earn more. If you go to Malaysia by yourself on a RM5000 contract you should be able to live pretty comfortable.

Discuss everything about the salary that you have been offered at our forums.

Expat scams

As in the rest of the world there are quite a few people who were victim of an expat scam. Those were offered nice jobs with generous wages only to find out that this was all a scam. Often victims pay a small fee of a couple of thousand ringgits up front. If the offer you receive sounds too good to be true, then it often is not. No 27 year old is offered an RM25k monthly income package. Also look out for scams involving companies recruiting people that are under 27 years old (there are exceptions to this age related rule though).

 

Dependant pass procedure

When you have a work permit it is possible to start a dependant pass procedure to bring your husband or wife and kids to Malaysia. The dependent pass is valid as long as the principal’s employment pass remains valid. The dependant pass procedure can only take place if the following documents are delivered:

• Cover letter and authority letter from the company (that applied for the initial work permit).
• Form DP11A including photograph.
• Proof of relationship with the expatriate.
• Photocopy of the complete passport of the dependant.
• Photocopy of the complete passport of the expatriate.