06 November 2025

Malaysia introduces overstay fines for Employment and Dependent’s Pass holders

Effective 21 October 2025, the Immigration Department of Malaysia (MID) implemented the Overstay Management Programme, which introduces fines for Employment Pass (EP) and Dependent’s Pass (DP) holders who remain in Malaysia beyond their permitted period of stay. To mitigate the risk of overstays and associated penalties, employers may submit renewal or extension applications at least three months before the expiry of their employees’ EP and DP. They may also apply for a SP before the current pass expires if they anticipate delays due to late filing, or incomplete or incorrect documentation during the pass renewal process, which may impact the pass holders’ immigration status in Malaysia. If the SP application is submitted after the pass expires, a fine will apply and will need to be settled before the SP is issued.

A Tax Alert prepared by EY's People Advisory Services, and attached below, provides additional details.

* * * * * * * * * *

Attachment

Full text of Tax Alert

Document ID: 2025-2238