Through a recent online briefing, the Social Security Organization (SOCSO/PERKESO) clarified that the salary threshold for exemption from Labour Market Testing (LMT) is expected to increase from MYR 15,000 to MYR 20,000 per month.
This means that if the expatriate’s base monthly salary is below MYR 20,000 a month, the LMT process will be required before any Employment Pass (EP) application can be submitted. The salary threshold applies to base salary only and does not include allowances or other benefits.
Current LMT Exemptions:
Under the current written rules, LMT is required unless one of the below exemptions applies:
- Base salary is above MYR15,000 per month (approx. USD3,750) – Subject to change pending official announcement.
- EP renewals
- Applicants come from the same group of companies i.e. intra-company transfers
- Applicants hold min. 30% shares in the Company
- Senior management positions (e.g. C-suite executives and directors)
- 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
Next Steps:
- PERKESO/SOCSO has advised awaiting the updated FAQ and formal announcement on the matter.
- We will continue to keep everyone posted once the FAQ and formal announcement are officially released.
If you have any questions regarding the impact of this change on your workforce planning or Employment Pass applications, please contact the T&S APAC Team.
