Malaysia Raises Labour Market Test Exemption Salary Threshold to MYR 20,000, Aligning with New Employment Pass Framework
- Editorial Team
- Aug 7
- 3 min read
Updated: Aug 7
KUALA LUMPUR, August 7, 2026 — The Malaysian government has increased the salary threshold for exemption from the Labour Market Testing (LMT) process under MyFutureJobs from MYR 15,000 to MYR 20,000.
The change aligns with the revised Employment Pass salary framework introduced on June 1, 2026, and takes effect immediately.
Published: August 7, 2026 | By VisasUpdate.com Editorial Team
What Has Changed?
Aspect | Previous Threshold | New Threshold |
Salary Exemption | MYR 15,000 | MYR 20,000 |
Effective Date | Prior to June 2026 | August 7, 2026 |
Previously, expatriate positions with a monthly base salary of at least MYR 15,000 were exempt from the LMT process, allowing employers to proceed directly with Employment Pass applications.
Under the revised threshold, positions offering monthly salaries below MYR 20,000 may now be subject to the LMT process unless they qualify for another exemption.
Who Is Affected?
Positions Now Subject to LMT
Expatriate positions with monthly base salaries between MYR 15,000 and MYR 19,999
Employers must now advertise vacancies on MyFutureJobs for a minimum period and conduct interviews to source local talent before hiring foreign workers
Positions Exempt from LMT
The existing exemption categories remain unchanged and continue to include:
Exemption Category | Details |
Salary Threshold | Monthly base salary of MYR 20,000 or more |
Senior Management | C-Suite and key posts |
Intra-Company Transfers | Transfers within multinational corporations |
RERO Positions | Representative Office/Regional Office positions |
Investors & Shareholders | Investors, shareholders and company owners |
International Organizations | Covered by the International Organizations (Privileges and Immunities) Act |
Sports Sector | Positions in the sports sector |
EP Renewals | Employment Pass renewals |
Background: Revised Employment Pass Salary Framework
The threshold increase aligns with Malaysia's broader Employment Pass salary overhaul that took effect on June 1, 2026:
EP Category | Previous Minimum | Revised Minimum (from 1 June 2026) | Max Duration |
Category I | MYR 10,000 | MYR 20,000 and above | Up to 10 years |
Category II | MYR 5,000 – MYR 9,999 | MYR 10,000 – MYR 19,999 | Up to 10 years |
Category III | MYR 3,000 – MYR 4,999 | MYR 5,000 – MYR 9,999 | Up to 5 years |
The revised policy, approved by the Cabinet on October 17, 2025, aims to reduce reliance on foreign labour and prioritise the employment of suitably qualified local talent, aligning with the objectives of the Thirteenth Malaysia Plan (RMK-13).
Impact on Employers
Impact | Details |
Increased Administrative Burden | Employers with expatriates earning MYR 15,000–19,999 must now undergo LMT process |
Extended Hiring Timeline | Must advertise on MyFutureJobs for minimum 30 days |
Higher Costs | Potential delays in hiring and additional recruitment expenses |
Strategic Planning | Employers should review workforce strategies to comply with revised requirements |
Related News
Quick Reference Summary
Aspect | Details |
Previous LMT Exemption Threshold | MYR 15,000 |
New LMT Exemption Threshold | MYR 20,000 |
Effective Date | August 7, 2026 |
Alignment | Revised EP salary framework (1 June 2026) |
Exempt Positions | Salaries ≥ MYR 20,000, senior management, intra-company transfers, RERO, investors, international orgs, sports sector, EP renewals |
Key Policy Objective | Prioritise local talent, reduce foreign labour reliance |
 Official Resources
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