UAE: Is retirement mandatory at 60 or 65 years old?

UAE: Is retirement mandatory at 60 or 65 years old?

In certain situations, individuals have the option to apply for a retirement visa, which allows them to remain in the Emirates even after retiring.

Question: Is there an official retirement age in the UAE? As I'm nearing 60 years old, will there be any alterations to my visa or job contract once I surpass this age?

Answer: In response to your question, it appears that you are employed by a company based in the UAE. According to the relevant regulations, such as Federal Decree-Law No. 33 of 2021 on the Regulation of Employment, Cabinet Resolution No. 65 of 2022 on the Executive Regulations for Federal Decree Law No. 29 of 2021 regarding the Entry and Residence of Foreigners and the Organization of Golden Residency Permits, and Ministerial Resolution No. 52 for 1989 on the Rules and Procedures for Employment Permit Sections related to the recruitment of non-national employees in the UAE, the following information applies.

In the UAE, the official retirement age for employees is not explicitly stated in the current Employment Law or subsequent ministerial resolutions. However, the current Employment Law allows for the application of provisions from the previous Employment Law (Federal Law No. 8 of 1980 Regulating Employment Relations) and other ministerial resolutions in such cases. This is in accordance with Article 73(3) of the Employment Law, which states that decisions, regulations, and rules in force prior to the implementation of the current law will continue to apply as long as they do not conflict with its provisions.

According to Ministerial Resolution No. 52 of 1989, which falls within the scope of the aforementioned provision, the retirement age for expatriate employees in the private sector is mentioned as 60 years. Article 3(c) of this resolution states that approval for hiring non-national employees in the UAE cannot be granted if the recruited employee is below 18 or above 60 years of age. However, exceptions can be made if the employee possesses extensive and rare experience in their field of specialization, and if their employment is of economic importance as determined by the Minister.

It's important to note that since January 2011, the Ministry of Human Resources and Emiratisation (MoHRE) has been accepting work permit requests from individuals over the age of 60 up to the age of 65. This means that the retirement age has been extended from 60 to 65 years. Consequently, for employees working in the private sector on the mainland, the retirement age may be considered as 65 years. However, the retirement age of 65 years can be further extended on a case-by-case basis, taking into account the individual's job nature, qualifications, and expertise, particularly if they are crucial to the organization they work for. Any such extension would require the approval of MoHRE.

Furthermore, when an employee reaches the age of 65, MOHRE may issue an annual work permit instead of the regular two-year permit, upon the employer's application. Therefore, if you are currently around 60 years old, you can continue working with a standard two-year work permit and a UAE residency visa. However, once you reach 65 years old, your employer may need to obtain an annual work permit and UAE residency visa, taking into consideration your expertise and experience, which may be valuable to both your employer and the UAE economy.

Alternatively, if you choose to resign or retire from your employment at the age of 55, you have the option to remain in the UAE by applying for a retirement visa. To be eligible for this visa, you must fulfill certain criteria as outlined in Article 52 of Cabinet Resolution No. 65 of 2022 related to Golden Residency Permits. These criteria include having valid documentation confirming a minimum of 15 years of continuous work experience inside or outside the UAE, being at least 55 years old, owning one or more properties in the UAE with a value of at least Dh1 million, or having fixed deposits in UAE banks amounting to at least Dh1 million, or having an annual income of not less than Dh240,000 or its equivalent in another currency.

For further clarification on this matter, it is advisable to seek guidance from the Ministry of Human Resources and Emiratisation (MoHRE) if you reside in Dubai, or the Federal Authority for Identity, Citizenship, Customs & Port Security if you live in other emirates of the UAE.

News Source: Khaleej Times

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