The UAE has raised its retirement from 60 to 65, giving
expatriates leave to work for a further five years, a Ministry of Labour
official said on Thursday.
The move, which forms part of a widespread change in
labour laws across the country, will allow expats to secure work visas up to
the age of 65.
“The
retirement age before was 60, now it’s 65. They raised the retirement age,” the
official, who declined to be named, told Arabian Business.
He
said the Ministry would start accepting requests from January 1 to issue the
over-60 permits. He said the same fees would apply as to permits for workers
60-and-under.
“We
believe that these people still can stay and deliver more work – they have the
experience – and we want them to stay.
“After 65 you’re considered post-retirement,
and it’s a different rate,” he said. “You’re also on a one-year visa [term]
instead of a two-year.”
He
said the move would help free up the country’s labour market.
“We
don’t want it to be rigid,” he said.
It is the latest in a series of work visa changes
affecting the UAE’s expat population, including an announcement last week that
as of January 1, labour card validity will be reduced from three years to two
years.
Skilled expat workers will also no longer need a
no-objection certificate from former employers to take up a new job.
Under previous labour laws, employers can refuse to issue
a certificate of no-objection, resulting in expatriate workers having to leave
the country for six months.
The official said the Ministry’s changes were meant to keep expat
workers from leaving Dubai and to “empower” the labour market.
“The government believes that it should maintain this asset [experienced
workers] in the country and seeks to build a transparent relationship between
employer and employee,” he said.
By keeping job competition in town, the ruling could have a direct
effect on Emiritisation, he said.
“The labour market will be done by supply and demand rule,” he said.
“It will raise the salary levels – and Emiratis will start wanting the jobs.
“More decrees are coming, to maintain a healthy relationship
between employers and employees.”
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