A new report shows that end-of-service benefits are not enough for retired workers in the Gulf. This report gives important details about millions of expats living in the region.
- Millions of Indian citizens live and work across the six GCC countries.
- Most workers rely on End-of-Service Indemnity instead of a monthly pension.
- Many low- and middle-income families must stay in the Gulf longer than planned.
A new report from the International Labour Organization (ILO) titled 'Old-age security in the South Asia–Gulf migration corridor,' released in August 2026, highlights critical gaps in retirement security for millions of expatriates in the UAE and GCC nations. According to data from India's Ministry of External Affairs as of March 2026, there are
43.26 million Indian citizens in the UAE and
27.48 million in Saudi Arabia, with the total Indian population across the six GCC countries reaching approximately 80 million. The report notes that GCC countries largely treat migrant labor as a temporary arrangement. However, many families have resided in the region for decades, with second generations now living there, despite the absence of national pension schemes. Currently, most workers rely on End-of-Service Indemnity (EOSI) rather than a monthly pension. In the UAE, this typically consists of 21 days of basic salary for the first five years and 30 days thereafter, often capped at two years' worth of salary. Most Indian migrants remain outside the purview of the Employees' Provident Fund Organization (EPFO).
Statistics indicate that migrant workers constitute
76% of the workforce in Saudi Arabia and
up to 95% in Qatar. Interviews conducted by the ILO reveal that many low- and middle-income Indian families are forced to stay in the Gulf longer than planned due to rising healthcare and living costs. While the UAE has introduced a voluntary alternative end-of-service savings scheme—which is mandatory within the Dubai International Financial Centre (DIFC)—and nations like Oman and Bahrain are exploring provident fund models, low-wage workers often remain excluded.
The ILO recommends that
GCC nations make alternative end-of-service schemes mandatory and incorporate pension-like components. Additionally, the organization calls for increased access to affordable healthcare for elderly residents and urges the Indian government to consider integrating schemes like EPFO or the National Pension System (NPS) with the migrant corridor. This report follows earlier coverage by The Logical Indian on September 7, 2026, and the Deccan Herald on September 3, 2026.
