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Thu 30 Dec 2010 02:07 PM

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UPDATE: Retirement age in UAE raised from 60 to 65 in labour law changes

Five-year extension follows widespread changes to labour law, residency visas announced this month

UPDATE: Retirement age in UAE raised from 60 to 65 in labour law changes
NEW RULES: Skilled expat workers will also no longer need a no-objection certificate from former employers to take up a new job (Getty Images)

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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Richard Pinto 9 years ago

It is a good news for all expartriates who ever nearing retirement age. I am one of them is most benefited. I lived here in Dubai 33 years and this is my home. Most of my life time I have spent here in Dubai and I am pleased the authorities are doing a great job not only for national but also expatriates. No other country will offer such benefits for expatriates and we salute Dubai Government..

khdmohd UAE Energy Expert 9 years ago

I have been managing a Gas Operation department in the UAE with many senior expatriate staff members who has reached the age of 60 and with thier position and experiences it has been very difficult to find replacement Now we both have 5 years to breath and secure the experience and train for replacement .

Manny 9 years ago

Thanks for this new labour law change for the age limit on the retiremnet scheme from previous 60 to 65 years old. As you grow older your speed getting slower but your experienced and mind are faster than the beginer. And, this is what we need, to transfer their experienced/skilled to the new generations before they get retired. I'm an expatriate and been here in abu dhabi for more than 23 years now. And, want to ask if there is any law that stipulate after retiring you can still acquire a residence visa sponsored by your employer or any government institutions?

Bangar 9 years ago

FANTASTIC NEWS FOR ALL THOSE NEARING RETIREMENT AGE. GOD BLESS THE DUBAI GOVERNMENT. THEY REALLY KNOW TO TAKE CARE OF PEOPLES NEEDS AND INSECURITIES.

ngumsus 9 years ago

UAE has done it again. May God bless those in authority as they make decisions to favor the old. God says in His wise sayings...that He gives blessings to those who bless the old, the orphans and the helpless in the society.

afra Magalhas 9 years ago

Thanks for the dubai government for changing this policy from 60 to 65 ...God bless .

One again a Big Thank you.

Jane 9 years ago

Many countries are now increasing the retirement age to 70 for women and 75 for men as countires are beginning to realise the value of the skills and experience older people have and that they can not afford to let it go. While 65 is a much needed improvement the UAE should consider increasing this further as there is a lot of skill in the older age bracket which could easily be retained for at least a further ten years. Many of the skilled 60+ people in the UAE have been here over 20 years, this form of commitment and loyalty by employees should be retained if the employee is still capable of doing their job. That length of service is rare in the modern younger work world and the older people are full of highly skilled knowledge which can not be easily repleaced with young fresh energy...no matter how enthusiastic they are, or how qualified, qualifications and theory will never replace hands on experience.

Michael Stokes 9 years ago


I am normally resident in Abu Dhabi, but am presently on leave in my adopted home - China, and am unable to enter sites such as NBAD where I could find the information I need.

Until recently, having turned 60, if you opened a new bank account, you could not obtain credit cards or personal loans. I am interested in a short term personal loan. Is this now possible (in principle at least)?

Thanks for any assistance

Mike

Linda Allen 8 years ago

I have recently attempted applying for employment in Abu Dhabi and was told the age limit was 60. I am hoping this is incorrect.

dr.khudoos 7 years ago

thanks to the dubai government..Age,sure,is never a barrier..experieced doctors & engineers contribute much more to any nation with more sincerity with a mature mind,indeed...even Drs.can work upto 65 or 70 years..they can be sent to medical checks-up annually with simple tests like blood sugar,ecg ect..& they can be given extension of work-permit,if they are fit ..what's the problem..Countries like uae would be certainly benefitted.