The United Arab Emirates (UAE) is a global hub for job opportunities. The UAE government initiatives as well as the startup ecosystem in Dubai have attracted expatriates to explore opportunities in the emirates. The retirement age in the UAE is crucial and it has to cover finances, social interest, and legal aspects of the job.
How is Retirement in the UAE?
The retirement age is not fixed in the UAE. Neither the government nor the immigration policies have put limitations on retirement, especially for expatriates. The lawyers in Dubai provide acumen research and knowledge about the latest employment laws, renewals of residency, planning better pensions, and any contractual obligations.
Retirement Age for Emiratis and Expatriates in the UAE
Though there is no specific age of retirement for expatriates, Emiratis can work in the public sector for 60 years. The Federal Authority decides the retirement age for Government Human Resources. Emiratis working in the non-public sector have the same timelines for retirement but they also get benefits from the General Pension and Social Security Authority (GPSSA). The pension system in the UAE begins at the age of 18, whereas the benefits of retirement can be obtained after 20 years of service in the sector.
On the contrary, the expatriates can work till 60 years of age but they can also extend their tenure for at least 65-70 years. However, they will need approval from the Ministry of Human Resources and Emiratisation (MOHRE) if they want to continue working for more than 60 years. The Dubai law firms have been working for such clients and employment contracts where they ensure safe working practices in the UAE.
How Do Work Permits Work After 60 in the UAE?
The expatriates can continue to work after 60 years of age; however, they will have to apply for a work permit. The duration of the work permit is yearly and has to be renewed annually for longer durations. The sectors of healthcare, legal services, and academia often have people from this age bracket as they are considered industry experts. However, the work permit approvals also depend on industry type, health status, demand for labour in the market, and record of the employer and license.
Let the lawyers in Dubai help you with the documentation to extend or renew your work permit. They can work for both, employers and employees to ensure safe working practices in the UAE.
UAE Labour Law for Retirement
Under the UAE Labour Law (Federal Decree Law No. 33 of 2021) there is no retirement age in the private sector. However, the benefits of end-of-service and renewal terms are flexible in the law. Employers can add retirement clauses in the employment contracts so everything is clear when the employee is getting retired from the job. The employment termination is decided mutually or the company policy. Having said that, Dubai law firms shall be hired to ensure a better employment contract that complies with UAE labour laws.
End-of-Service Benefits and Retirement in the UAE
Retirement offers you financial aid through end-of-service gratuity which is calculated from the last basic salary withdrawn. The expatriates working in the private sector can benefit from these offers as they do not buy any pension schemes in the UAE. It is important to know that the end-of-service gratuity is given to employees who have at least served one year of service in the organisation.
The maximum benefit of the gratuity service is not more than two years’ salary in the UAE. If you think that you were not given the right amount of gratuity then you should seek legal help from the lawyers in Dubai. They will ensure compliance with your employment contract and gratuity benefits.
How do Expatriates Plan for Retirement in the UAE?
The expatriates do not get pensions in the UAE as they are not nationals. Their retirement plans are different and sold by different companies in the UAE or get a better plan through the employer. They invest in properties or have savings accounts in their home countries. Moreover, they also have to look for relocations as they have visa restrictions.
There have been recent retirement plans introduced in the UAE to replace the end-of-service gratuity with other schemes. In most cases, Dubai law firms have financial advisors who can assist foreigners with their legal status to have financial security in the UAE while relocating to another country.
Retirement Visa in the UAE
Many people have served for a long in the UAE and they get a Retirement visa. It is obtained by expatriates who are more than 55 years of age and they can renew the visa after 5 years. Also, the applicant either has savings of AED 1 million, AED 20,000 monthly income, or AED 2 million of property investment. With that visa, the employee can stay there for the long term even if they have retired from their job. The lawyers in Dubai can facilitate clients with resident visas.
Challenges for Older Workers In the UAE
The challenges for older workers in the UAE could be related to the bias in the age factor, renewing the work permit, and uncertainty in long-term employment. To overcome these problems, Dubai law firms can assist older people in the UAE.
Frequently Asked Questions (FAQs)
What is the official retirement age in the UAE?
There is no official retirement age for expatriates in the UAE, but the Emiratis have to retire by the age of 60.
Can expatriates continue working in Dubai after 60?
The expatriates can work after 60 years of age in the UAE. However, they need approval from the MOHRE and the employer. It depends on their sector if they are eligible to work for more years in that industry.
Are expatriates entitled to pensions in the UAE?
The expatriates do not get any pensions because they are not nationals. However, there are some retirement plans that they can buy.
Is there a retirement visa in the UAE?
The expatriates can apply for a retirement visa after the age of 55 years. They will have to renew it after 5 years if they meet the criteria of savings or property investments in the UAE.
How can lawyers help with retirement-related issues in the UAE?
The lawyers in Dubai can help expatriates with work permits, and applications for retirement visas and provide them with a better plan for long-term residency in the UAE.