Expats working in Saudi Arabia may find they will have to retire at 60 thanks to proposed controversial new laws.
In a bid to cut the number of foreign workers in the country, Saudi Arabia intends to force those expats reaching that age to retire.
With expats making up 90% of Saudi Arabia’s private sector workforce, the government wants firms to employ more locals than foreigners.
To enforce this, the Saudis introduced a so-called ‘expat tax’ last November, which is a fine imposed on companies employ more foreigners than Saudis.
Jobless concerns
Now, the Saudi government looks set to impose an age cap on expats. Currently foreign nationals can workup to any age in the country.
However, Saudi’s own citizens are also forced to retire at 60, which means the new laws will bring expats into line with local employees.
The retirement age issue is a controversial subject in Saudi. Many locals believe that expats should give up working even earlier, with many suggesting 55 years as the forced retirement age and others suggesting as low as 50.
Some are even debating a minimum age threshold on foreign expats moving to the country.
One of the major reasons for the debate is that Saudis are increasingly concerned about high youth unemployment and question why Saudi Arabia needs to rely so heavily on foreign talent.
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