UAE Retirement Age Explained: What the Labour Law Says

One of the most common questions among workers in the United Arab Emirates is at what age they are required to retire. The answer depends largely on whether a person is an Emirati national or an expatriate, and on which sector they work in. Here is a clear breakdown of what the UAE Labour Law and related regulations say about the retirement age.

No Mandatory Retirement Age in the Private Sector

Under the UAE Labour Law (Federal Decree-Law No. 33 of 2021) and its Executive Regulations issued under Cabinet Resolution No. 1 of 2022, the UAE private sector is not subject to a mandatory retirement age. This means that reaching the age of 60 does not, in itself, constitute a lawful ground for terminating an employment relationship. Any termination must instead comply with the grounds and procedures prescribed under the Labour Law, regardless of the employee's age.

Legal experts note that this approach allows UAE employers to retain experienced professionals based on business needs, competence, and the employee's continued ability to perform their role, reflecting the country's broader policy of fostering a competitive labour market that values expertise, productivity, and knowledge transfer over age alone.

60 as an Administrative Milestone

While there is no law forcing retirement at exactly 60, that age remains a significant administrative milestone for expatriates. Under Ministerial Resolution No. 52 of 1989, 60 years is referenced as the standard retirement age for expatriate employees in the private sector, with work permits historically limited to those aged 18 to 60.

In practice, however, the effective ceiling has been raised. Since January 2011, the Ministry of Human Resources and Emiratisation (MoHRE) has accepted work-permit requests for individuals over 60 and up to 65 years of age, effectively extending the working age to 65 in the private sector. Expatriates who wish to continue working beyond 60 must obtain a renewable work permit, typically issued on an annual basis and renewed each year.

Working Beyond 65

The age limit of 65 can be extended further for employees with rare or specialised expertise deemed important to the UAE economy, subject to MoHRE approval. Approval of these extensions depends on factors such as the nature of the work, the employee's credentials, health condition, industry demand, and the employer's record and licensing status. Sectors such as healthcare, legal services, and academia often retain experienced professionals well beyond the standard age because of their expertise. Employers may face higher processing fees for renewing work permits for employees over 65.

Retirement Age for UAE Nationals

For Emirati nationals, retirement is linked to pension eligibility rather than the Labour Law. Under Federal Decree-Law No. 57 of 2023 on Pension and Social Security, the retirement age for insured UAE nationals is set at 60 years. Emirati employees are covered by the General Pension and Social Security Authority (GPSSA), or the relevant Abu Dhabi pension fund for those in that emirate, and become entitled to a pension after completing at least 15 years of insured service. Early retirement is also possible under certain conditions.

End-of-Service Benefits

Expatriates in the private sector, who do not participate in the national pension system, are entitled to an end-of-service gratuity upon leaving their employment. Under the UAE Labour Law, this is calculated based on the last basic salary: 21 days' salary for each year of the first five years of service, and 30 days' salary for each additional year, with the total not exceeding two years' pay. Alternatively, employees may be enrolled in the voluntary alternative end-of-service savings scheme launched by MoHRE and the Securities and Commodities Authority in 2023.

Staying in the UAE After Retirement

Those who choose to retire in the UAE can continue living in the country by applying for a retirement visa, available to individuals aged 55 and above who have at least 15 years of proven work experience and meet the minimum financial eligibility requirements. The five-year renewable visa allows retirees to remain in the country without being sponsored by an employer, offering a pathway to a long-term stay after their working years.

Note: This is general information based on the UAE Labour Law and related regulations, and not legal advice. Rules and thresholds can change, and individual circumstances vary, so those planning retirement should verify the latest details with MoHRE, the GPSSA, or a qualified legal professional.