Relocating a Foreign Employee to Malaysia: HR Checklist from Offer to Exit (2026)
Hiring a foreign employee in Malaysia does not end with the Employment Pass. In the first month the company has to register them with SOCSO and EPF, and the employee needs a bank account, a home and a phone line. When they leave, the company has tax and immigration steps with their own deadlines. This checklist puts the steps in order, from the offer to the last day, with a link to our detailed guide for each one.
💡 Key takeaway: Before arrival: make the offer, apply for the Employment Pass and plan for the succession plan required from 2027. In the first 30 days: register the employee with SOCSO, start EPF contributions at 2% each, and help with the bank account, housing and phone. Decide on medical cover and check what they will drive on before giving them a company car. When they leave: file the CP21 with LHDN at least 30 days before they leave for more than 3 months, shorten the pass, and declare the Exit Clearance within 30 days where it applies.
The checklist at a glance
| When | What the company does | Guide |
|---|---|---|
| Before the offer | Check the role and salary meet the Employment Pass rules | EP salary thresholds for tech roles |
| Offer | Send an offer letter that matches the pass application | Job offer letter template |
| Before arrival | Apply for the Employment Pass | How to apply for an Employment Pass |
| Before arrival | Apply for the family's passes; get the certificates certified by an embassy | Bringing the family |
| Within 30 days of hiring | Register with SOCSO, start EPF, set sick leave and medical cover | Healthcare, SOCSO and EPF |
| Within 30 days of the start date | Report the new employee to LHDN on e-CP22, then deduct tax every month | Income tax for foreign employees |
| First weeks | Employment letter for the bank account | Opening a bank account |
| First weeks | Help with the tenancy, deposits and stamp duty | Renting a home |
| First weeks | Phone line (see below) | This page |
| Before a company car | Check the licence and the insurer | Driving licences |
| During employment | Succession plan for Employment Pass holders, from 1 January 2027 | The succession plan |
| When they leave | CP21, pass shortening, Exit Clearance, EPF withdrawal | Employer checklist when a foreign employee leaves |
Before the employee arrives
Check that the role and the basic salary meet the Employment Pass category before you make the offer, because the offer letter and the pass application must say the same thing. Then apply for the pass. For each foreign hire, the company also has to explain why the role needs a foreign hire. Our guide on how to make the case for a foreign hire covers what to write. From 1 January 2027, a succession plan for training a local employee is also required.
Hiring a foreign engineer for your team?
Seekers is a licensed tech recruitment agency in Kuala Lumpur. We find Malaysian and foreign engineers, and if your hire needs an Employment Pass, we can support the application. EP support is quoted separately from the recruitment fee.
Talk to us about a hire →Not sure the salary qualifies? Check the Employment Pass category with our free EP checker.
The first 30 days
Register the employee with SOCSO within 30 days of hiring. From 1 June 2026 the employer pays 1.75% and the employee 1.25%. EPF contributions of 2% from each side are paid by the 15th of the following month. The Employment Act gives 14 to 22 days of paid sick leave a year, depending on length of service, and up to 60 days if hospitalisation is necessary. SOCSO and EPF do not pay for a visit to the doctor for an ordinary illness, so decide how the company will provide medical cover.
CIMB, HSBC and RHB ask for a passport and an Employment Pass, each valid for at least 6 months, and an employment letter. Our bank account guide has a template for the letter, and ways to pay before the account is open. For housing, plan the search 1 to 2 months before the move and budget for the booking fee, the deposits, the tenancy agreement fee and stamp duty.
A phone line
New rules for prepaid SIM cards were registered on 26 February 2026. A non-citizen can hold up to 2 prepaid SIM cards with each provider, and must show the original passport and go through facial recognition. Copies, scans and photos of the passport are not accepted. SIM cards bought by tourists stop working after 3 months, so ask the provider how to register a line for an Employment Pass holder.
When the employee leaves
If the employee will leave Malaysia for more than 3 months, file the CP21 with LHDN at least 30 days before they leave, and hold back their final payments for up to 90 days after LHDN receives the form. Shorten the pass even if it has time left. For passes approved from 18 November 2025 that end without being shortened or renewed, declare the Exit Clearance within 30 days, or the company's account on the immigration system can be restricted. The employee can withdraw all of their EPF savings.
Settling in a foreign employee
- When a foreign employee leaves Malaysia: employer checklist
- Renting a home for a foreign employee: deposits and stamp duty
- Opening a bank account for a foreign employee
- Driving in Malaysia: licences for foreign employees
- Healthcare, SOCSO and EPF for foreign employees
- Income tax for foreign employees: what HR does
- Bringing the family: Dependant Pass, school and spouse work
- How to apply for an Employment Pass, step by step
How Seekers can help
Seekers is a licensed tech recruitment agency in Kuala Lumpur. We find Malaysian and foreign engineers for your team, and if your hire needs an Employment Pass, we can support the application. EP support is quoted separately from the recruitment fee. Talk to us about a hire.
Frequently asked questions
What does a company have to do in the first month after hiring a foreign employee in Malaysia?
Register them with SOCSO within 30 days, start EPF contributions at 2% from each side, and give them an employment letter for the bank. Most companies also help with housing and a phone line.
Does the company have to provide medical insurance for a foreign employee?
SOCSO and EPF are required. They cover injury, invalidity and retirement savings, not ordinary doctor visits, so medical cover is the company's decision. Medical benefits provided by the employer are tax exempt for the employee.
Can a foreign employee convert their driving licence to a Malaysian one?
No. JPJ stopped converting foreign licences on 19 May 2025, except for diplomats, MM2H participants and Malaysian citizens.
How many prepaid SIM cards can a foreigner have in Malaysia?
Up to 2 with each provider, under the rules registered on 26 February 2026. The original passport and facial recognition are required.
What must the company do when a foreign employee leaves Malaysia?
File the CP21 at least 30 days before they leave for more than 3 months, shorten the pass, and declare the Exit Clearance within 30 days where it applies.
Sources
Each linked guide lists its own sources. Prepaid SIM rules: The Star, 26 February 2026 and Lowyat.NET. This guide is general information, not legal or tax advice. Last checked: 28 October 2026.