New Overstay Fines for Pass Holders in Malaysia in 2025

Malaysia has made a huge step towards streamlining its processes of dealing with the visa overstays by long-term pass holders. The Immigration Department of Malaysia (JIM) shall issue systematic fines to the holder of the Employment Pass (EP) and the Dependent Pass (DP) who works in excess of their authorised time of stay by a maximum of 90 days under the new policy concerning the Overstay Management Programme (OMP) to be enforced on 21 October 2025. It is a change of the former regime, where the overstays of more than 30 days usually led to instant referral to the enforcement mechanisms. 

Here, we unpack the new policy framework, see how the tiered fine system operates, discuss what this means to pass-holders and sponsoring companies, what has not changed and what compliance measures to take in practice.

Background and Rationale

Traditionally, in Malaysia, foreign nationals who were using long-term passes, including Employment Passes, Dependent Passes and Professional Visit Passes, and exceeded their stipulated authorisation by 30 days have their cases automatically referred to the Immigration Enforcement Division as part of the Overstay Investigation Paper (OIP) process. 

The new Overstay Management Programme is representative of a change to a more formal, predictable and arguably more fluid mechanism. Legal-immigration advisors reveal that the objective is to lessen not only the bottleneck of administration and uncertainty linked with the direct enforcement referrals, but also by providing transparent compound rates to overstays of up to 90 days.

This could be beneficial to both foreign nationals and employers since they will know their liabilities and manage their risks of immigration status better. However, the changes are also more focused on active compliance and renewals.

Also Read: Jobs in Malaysia for Indian Professionals: Latest Guide

What does the New Fine Structure say?

The provisions under the OMP include the following: 

Applies to:

• Employment Pass (EP) holders

• Dependent Pass (DP) holders

• Other long-term passes (e.g. Professional Visit Passes) in some communications.

Fine structure of any stay longer than 90 days:

• Overstay of 1–30 days: RM30 per day.

• Overstay of 31–60 days: Flat RM1,000.

• Overstay of 61–90 days: Flat RM2,000.

What falls outside this compound structure (i.e. is referred to as the Enforcement Division):

• Overstays exceeding 90 days

• Repeated overstay offences

• Overstays with Special Pass.

Individuals putting in the senarai syak (Suspect List) or those who have criminal/immigration offence histories.

Additional Changes:

• It has raised the application fee of Special Passes in non-OIP cases by RM 200/MYR (RM 100) per application.
• The government highly recommends that applications to renew or extend a pass should be made at least three months prior to the expiry date of the pass.

Implications for Pass-Holders and Employers

The implications for pass-holders and employers are:

For Foreign Nationals (EP/DP Holders)

• The new regime specifies the parameters better: instead of an automatic enforcement referral of even comparably minor overstays, now a fixed fine framework is imposed of up to 90 days. This translates to fewer surprises and certainty.

• This, however, should be seen as a grace window, and not permission to postpone renewal. There is still a fine, and therefore exceeding validity is punished.

• More than 90 days or a repeat offender still poses the risk of full enforcement, detention, deportation, blacklisting or other immigration penalties.

• Likewise, Dependent Pass holders should also be very cautious; the fine system is applicable to them also in this scheme.

For Employers / Sponsors

• Employers who sponsor Employment Passes should be keen on expiry dates. Renewal applications are required to be filed early (at least three months in advance) in order to prevent the onset of overstay.

• Fine regime not only imposes some responsibility on the pass-holder but also on immigration management systems used by the sponsoring organisation. An employer may not be spared the reputational or operating danger in the case of a worker overstaying.

• A fixed fine regime can make internal compliance (predictable cost/response) simpler, but it further increases the requirements of active pass-tracking, as the fine is not an elimination of risk.

• In the case of a company with many pass-holders / dependents in Malaysia, the group exposure is subject to an increase when many of the passes are not renewed.

For Malaysia’s Immigration System

• Shifting lower-level overstays to a compound fine system can help the immigration department of Malaysia to release resources to deal with more serious or systematic violations (over 90 days, repeat offending, irregular migrants).

• The predictable scheme can also enhance transparency and fairness on a regulatory basis, since pass-holders and employers will now be able to evaluate risk more effectively.

Also Read: Jobs in Malaysia for Foreigners: Latest Pay, Scope & More

What Hasn’t Changed / Continuing Risks?

What hasn’t changed:

• The overstays of 90 days or more remain fully referred to the Enforcement Division. This is the maximum limit of prescriptive fine structure.

• Special Pass holders, people in the list of suspected criminals, repeat offenders, or individuals who have previously breached immigration laws continue to be subjected to harsher treatment. The legislation differentiates between minor/ first-time overstays and serious cases.

• The fine regime is available exclusively to authorised passes (EP, DP, etc). Other types of tourist visas or other types might have different rules and cannot presuppose the same type of structure of the fine.

• By paying a compounded fine, status is not assured to be reinstated nor automatic renewal ensured; the pass-holder is still required to correct his or her immigration status according to regulation.

• The immigration policies can be modified — although the current OMP is now effective, pass-holders should be aware of the changes that can occur in the future, in the specific areas of the sector, or in the administrative practices.

Compliance Checklist: What Pass-Holders & Companies Should Do

What pass-holders and companies should do:

1. Monitor Expiry Dates: Have a calendar of the expiry dates of every EP/DP holder.

2. Renewal: Set internal notice at least 90 days before expiry.

3. File Renewal Early: File renewal or extension early enough (at least 3 months before expiry) to eliminate the risk of becoming overstayed.

4. Record Documents: Have copies of application receipts, pending renewal status, communication with immigration and evidence of legality of stay.

5. Financial Penalty Allocation: Although it is not as effective as implementing the complete strategy, fines (RM30/day during the first month; RM1,000 in case of 31-60 days; RM2,000 in case of 61-90 days) still exist. Make a contingent budget on the basis of overstay.

6. Avoid Repeated Overstays: A Second or repeated overstay can result in full enforcement, rather than a fine. Keep compliance consistent.

7. Check Dependent Pass Holders: Companies and main pass-holders should make sure that they also renew their dependents' passes in time and make them valid.

8. Consult Immigration/Legal Advisors: This is particularly when there has been an overstay concern, or renewal has been postponed, firms and individuals need to seek the advice of immigration counsel to know what this means.

9. Announcements to be Monitored: Although the programme was effective as of 21 October 2025, administrative guidelines can continue to develop.

Potential Benefits & Limitations of the New Regime

The potential benefits and limitations of the new regime are:

Benefits

• Predictability: The compound fine structure (1-30 days, 31-60 days, 61-90 days) represents clear and numeric thresholds and costs.

• Efficiency: Minimises the load on enforcement divisions of minor overstays, so that it can be resolved more quickly.

• Less Disruption: In the case of pass-holders, the consequence of not being referred to full enforcement is a lower risk of being detained, blacklisted or subjected to in-depth immigration interviews on relatively minor cases.

• Improved Compliance Incentives: The three-month-ahead counsel promotes advance renewal and discourages delays of a more ad hoc nature.

Limitations / Challenges

• Still a Significant Cost: a RM2,000 fine (61- 90 days overstay) is huge; it can be a heavy burden to many people or small employers.

• No Substantial Overstays: Overstays of less than 90 days are exempt; above 90 days, full enforcement is still in effect - so the 90-day limit should not be considered safe.

• Dependence on Sponsor/Employer Mechanisms: To a significant number of the foreign nationals, the renewal is the responsibility of the employer; hence, where the employer does not perform, one is still liable.

• Legal Grey Areas: Since the announcement is fresh, the interpretation of the announcement in practice, consistency of enforcement, and the possibility of appeal can continue to develop.

• Not Universal: There is no such thing as a universal regime, and so other pass categories/types of visas may not be under the same regime; thus, each case needs to be looked at on its own.

Why This Matters to Foreign Workers in Malaysia

Malaysia is still a powerful destination for foreign talent, particularly in the areas of technology, manufacturing, digital economy, services and regional hubs. As long-term passes and other dependents of workers increase, they pose a major risk in terms of operational compliance.

Personally, a work permit or a dependent pass can often not only allow a person to work but also to have a family, to live in a stable house, and to have other opportunities, which may allow the acquisition of a long-term residence. All that can be threatened by an overstayer are fines, possible deportation, entry bans or further denial of visas.

With the implementation of this order regime, Malaysia is sending a signal that it is weighing between enforcement and administrative predictability: lawful pass-holders will experience fewer setbacks in case of minor violations, but more serious violations will still result in enforcement. To foreign nationals and the sponsoring companies, this amounts to the necessity of a solid pass-management system, enhanced calendar management, and internal procedures that would prevent infrared-zone risk.

Also Read: Do Indians Need Visa for Malaysia? A Comprehensive Guide

Impact on Employers in Malaysia’s Labour Ecosystem

The overstay fine regime is now a requirement of the risk-management matrix by employers in Malaysia, especially those who take foreign nationals under EP/DP schemes. Key considerations:

• Planning the Workforce: Employers should ensure that pass expiry and renewal dates are synchronised with the project timelines, particularly where the staff workers are undertaking a long-term assignment.

• Budgeting: The HR/immigration compliance budget situations should include potential fines due to overstays.

• Culture of Compliance: In organisations where pass-renewal tracking is weak, organisations may end up exposed not only to financial punishment but to reputation or regulatory penalty in case of a high number of passes going out of date.

• Dependents: The inclusion of dependent pass holders implies that they have no other choice but to monitor dependent passes as well when family members accompany foreign workers.

• Immigration Counselling: The company policies, renewal processes, internal warning and escalation processes (e.g. when the renewal is pending, and it will run out soon) should be reviewed by the immigration counselling.

• Talent Retention: Foreign talent should also be able to seamlessly renew their experience process - delays can result in dissatisfaction, risk of attrition or compliance.

Regional & Global Context

The action of Malaysia can be regarded within the broader international tendency of countries to upgrade immigration enforcement based on the dichotomous legal/illegal scheme into more sophisticated frameworks offering graded responses. Fixed-fine regimes or so-called systems of compounds exist in other jurisdictions, which provide greater transparency to both the government and migrants.

High mobility levels between countries in Southeast Asia mean that predictable immigration regimes would increase the appeal of the region to multinational corporations. The importance of clarity on foreign worker stay is not only limited to the local economy but also to regional networks on labour mobility. Malaysia is a regional hub and, therefore, its role in regional labour mobility cannot be ignored.

However, the rest of the global context is more complex: compliance with immigration is still the operational risk of employers, and long-term effects of people with overstays include entry bans, less flexibility in visas or stricter inspections. So, though the new regime of Malaysia is somewhat liberal in terms of providing the tiered fines, the point is that it is still about the right visa status and the timely renewal issue.

Conclusion

The implementation of the Overstay Management Programme by the Immigration Department of Malaysia has created a great turnaround in the approach in which the issue of visa overstays is addressed when it comes to Employment Pass and Dependent Pass holders. Compared to the previous system, the new one is more predictable and provides more operational clarity, as it establishes clear compound fines (RM30/day to 30 days; RM1,000 to 31–60 days; RM2,000 to 61–90 days) and promotes submission of renewal requests early.

To foreigners and the companies they are sponsored by, the message is quite simple: now more than ever, renewal and careful monitoring of pass validity is very important. Although the potential fine regime is not as harsh as the referral to full enforcement, it is still significant, and the full enforcement machine will be in place, at least after 90 days or cases of repeat.

At a time when the world has become highly mobile in terms of workforce, the regime in Malaysia is striving to balance between allowing easier compliance among the legitimate pass-holders and the severe enforcement of more serious infractions. In this regard, everyone, including individuals, employers, and immigration advisors, ought to listen and harmonise their procedures to avoid the unnecessary risk of overstaying.

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