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Saudi Arabia Raises Retirement Age to 65 Years Old

  • Publish date: Thursday، 18 July 2024
Saudi Arabia Raises Retirement Age to 65 Years Old

Saudi Arabia is shaking things up by increasing the retirement age to 65 for both public and private sector workers. This big change, part of the Vision 2030 reforms, was given the green light by the Saudi Cabinet, led by Crown Prince Mohammed bin Salman.

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Saudi Arabia Raises Retirement Age to 65 Years Old

Gradual Rollout of the New Age Limit

The shift to 65 won't happen overnight. The retirement age will increase gradually, adding four months for every month until the new limit is reached. This change applies to workers under 48 years and six months old when the decision was made.

Saudi Arabia Raises Retirement Age to 65 Years Old

Special Rules for Older Workers

If you're already 58 years and four months old, your retirement age stays the same. But for younger folks, especially those under 29, the new retirement age will be 65.

What This Means for Your Job

Employers can no longer let employees go at 60. They'll have to wait until 65, as stated in Article 74 (4) of the Saudi Labor Law. Employees can still resign at the retirement age and get their full End of Service Benefits. Employers won’t need to pay extra benefits for terminations at the retirement age. Contracts that go beyond the retirement age can end when they’re completed.

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