What do you think about the retirement age in Saudi Arabia? Retirement age in Saudi Arabia has become a hot topic of discussion since the Nitaqat Law came in to implementation. After the introduction of Nitaqat Law, all businesses have to comply with its strict guidelines. If they do not meet the requirements, they would not be able to renew the Iqamas of their employees, issue new visas and renew the commercial registration for the business. After this law, first target of the government organizations was to retire the employees who have completed their age of retirement. The retirement age was 60 years before but now it has been increased.
On 6th May 2014, Arab News reported that Shoura Council has decided to increase the retirement age of the government employees to 62 years (for males). Retirement age for females in Saudi Arabia is still 55 years. Decision was made taking into account the health conditions and social care of the public. Saudi Arabia is not the first country in the world to increase the retirement age of the employees. In fact 60 years is the minimum retirement age in any part of the world. Some countries have increased the retirement age of the employees up to 68 years. In UK, retirement age is 65 years.
However, it is important to mention here that as per Saudi Labor Law the retirement age of employees is till 60 years. The decision of Shoura Council is only applicable to government employees. Private companies can still retire its employees at the age of 60. It is important to mention here that in case of retirement, employees will get all the benefits as if they have completed their contract.
Source: Arab News
Resignation /Termination under Saudi Labor Law
- End of Service Benefits (ESB) Calculation
- Can employer deduct Iqama Renewal Fee and Insurance cost at the time of Resignation?
- Compensation in case of Work Injury as per Saudi Labor Law
- Retirement Age in Saudi Arabia
- Notice Period under Saudi Labor Law