Immigration

Malaysia | Increased salary threshold for labour market testing exemption for expatriate hiring

Summary

Following a briefing held on 22 July 2026, the Social Security Organisation (SOCSO) announced that the salary threshold for exemption from the Labour Market Testing (LMT) process under MyFutureJobs will increase from RM15,000 to RM20,000. This aligns with the revised Employment Pass salary framework introduced on 1 June 2026, which raised the minimum salary threshold for Employment Pass holders.

SOCSO has not yet issued updated guidelines confirming the revised exemption requirements.

The detail

Under the previous framework, expatriate positions with a monthly base salary of RM15,000 or more were exempt from the Labour Market Test (LMT) requirements. This allowed employers to proceed directly with an Employment Pass application without first advertising the position on the MyFutureJobs portal or obtaining SOCSO approval.

Following the revision, expatriate positions with monthly salaries between RM15,000 and RM19,999, which were previously exempt, may now be subject to the LMT process unless they qualify for another exemption category.

The following categories remain exempt from the LMT requirement:

• Positions with a monthly base salary of RM20,000 or more
• Senior management positions (e.g. C-suite executives and directors)
• Intercompany or corporate transfers
• Representative Office / Regional Office (RERO) positions
• Investors, shareholders, or company owners
• Organisations covered by the International Organisations (Privileges and Immunities) Act
• Positions in the sports sector
• Employment Pass renewals

What this means

Employers seeking to hire expatriates with monthly salaries between RM15,000 and RM19,999 may now be required to complete the LMT process before submitting an Employment Pass application, unless the position qualifies under an exemption category.

Where no exemption applies, employers should factor the following steps into their recruitment process:

• Advertise the vacancy on the MyFutureJobs portal;
• Comply with the prescribed advertising period;
• Consider suitably qualified local candidates identified through the platform;
• Submit the hiring outcome report to SOCSO; and
• Obtain the relevant SOCSO approval before lodging the Employment Pass application.

Given the potential impact on recruitment timelines and workforce planning, employers with upcoming expatriate hires in the RM15,000 to RM19,999 salary range should review planned assignments and Employment Pass applications as early as possible to determine whether additional lead time will be required.

How we can help

Our team can help employers assess the implications of these changes and navigate the revised requirements, including:

• Determining whether a proposed expatriate hire qualifies for an exemption from the LMT requirements;
• Advising on recruitment and immigration strategies in light of the revised salary thresholds and Employment Pass categorisation framework;
• Assisting with the MyFutureJobs and SOCSO processes, including guidance on advertising requirements and compliance obligations;
• Reviewing application timelines and identifying potential delays arising from the additional LMT requirements; and
• Providing tailored advice for current or planned expatriate assignments that may be impacted by these changes.

Contact us

For a deeper discussion on the above, please reach out to your Vialto Partners point of contact, or alternatively:

Sasha Reddy
Partner

Hana Rabi
Senior Manager

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