It has been widely reported that, at an online briefing session on July 29, 2026, the Social Security Organization (SOCSO — local abbreviation: PERKESO) announced that the base salary threshold exempting employers from undergoing the labor market testing (LMT) process for a position will be raised from MYR 15,000 to MYR 20,000.
If the foreign national’s base monthly salary (not including allowances) is below the threshold, LMT must be carried out before an Employment permit (EP) application can be submitted.
This means that employers intending to hire foreign nationals with salaries between MYR 15,000 and MYR 19,999 must now also undergo the LMT process for these candidates.
The briefing did not mention any changes to other exemptions from LMT. Currently, the LMT requirement is waived for EP renewals, changes of position, intra-company transfers, senior management positions, Representative/Regional Office positions, investors, shareholders or company owners, positions in the sports sector and organizations covered by the International Organizations (Privileges and Immunities) Act.
So far, there has been no official written announcement of this change.
The update aligns the salary threshold for LMT with the new minimum salary requirements for Employment Passes which took effect on June 1, 2026.
The revised Employment Pass (EP) Minimum Salary Requirements are as follows:
| EP category | Previous minimum salary | Revised minimum salary (June 1, 2026) |
| I | RM 10,000 and above | RM 20,000 and above |
| II | RM 5000 to RM 9999 | RM 10,000 to 19,999 |
| III | RM 3000 to RM 4999 | RM 5000 to RM 9999 |
Erickson Insights and Analysis
Erickson Immigration Group will continue monitoring developments and sharing updates as more news is available. Please contact your employer or EIG attorney if you have questions about anything we’re reporting above or if you have case-specific questions.