Retirement Age in UAE as per UAE Labour Law
When should I retire? At 60 or 65?
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It is said that the knowledge and experience grows as you get older. I received couple of emails from readers asking me to clarify when is actually the retirement age in UAE as per the labour law.
As per the authorities, the retirement age currently is set at 65 years.
This rule was changed by Ministry of Labour in 2011 and the MOL does accept requests for work permits for individuals aged 60 and above. Prior to this, the rule the retirement age was set to 60 years. Post this MOL was not accepting requests for work permits.
Why 60 years?
This is a convention that has been followed by many countries. I believe it's a thinking that past this age an individual may not be as quick and sharp as they used to be. But I guess, this is a wrong notion. Also it's a way of making way for the new generation of workers to enter the labour market by retiring the older generation.
Benefits of retirement at 65
Obviously the person is benefited as he/she will have more time in employment and earn an income.
It is also crucial since many highly specialised Doctors, Engineers can not be let go just because they have crossed 60 years of age. All the knowledge and experience that they have is definitely useful.
We must thank Ministry of Labour for raising the retirement age to 65 years in UAE.
How about retirement in UAE Free Zones?
Free Zones need not follow the rules set out by Ministry of Labour. They are free to form their own policies and procedures. Hence, it is not sure whether Free Zones in UAE do follow this rule of retirement age of 65 years.