The UAE’s General Pension and Social Security Authority (GPSSA) has launched an initiative to exempt small private sector employers from penalty payments related to registration delays and end-of-service processing failures.
The programme targets 1,906 small private sector employers covered by federal pension laws who employ no more than four Emirati nationals.
These businesses will receive waivers for penalties incurred between January 1, 2024 and April 30, 2025, the Emirates News Agency (WAM) said in a statement.
UAE pension authority waives penalties for small private employers
The GPSSA designed the initiative to support small private sector businesses, which contribute to job creation and economic diversification within the UAE.
The authority expects the financial relief to enable these companies to reinvest in growth and contribute more to the nation’s GDP.
The waiver forms part of efforts to strengthen Emiratisation within the private sector. By reducing financial pressures on small businesses, the initiative aims to enhance their capacity to attract and retain Emirati nationals.
Faras Abdul Karim Al Ramahi, Director-General of the General Pension and Social Security Authority, said the initiative demonstrates GPSSA’s commitment to supporting the business sector.
“This initiative aims to create a supportive environment for small businesses, enabling them to focus on growth and success. These companies are incubators of innovation and key sources of creativity and job opportunities for UAE nationals, contributing to social and economic stability. This step aligns with our wise leadership’s vision and tireless efforts to eliminate bureaucracy, streamline processes, and ease burdens on the business sector, enhancing the country’s business environment and attracting more investment,” Al Ramahi said.
He added that the step aligns with the leadership’s vision to eliminate bureaucracy and streamline processes for the business sector, which will enhance the country’s business environment and attract more investment.
The GPSSA will contact eligible businesses directly under the ‘Zero Government Bureaucracy’ programme, requiring no action from employers.
Companies that do not receive direct notification are not included in the initiative.
The authority will review any penalty payments outside the specified timeframe on a case-by-case basis, considering individual circumstances. This approach reflects GPSSA’s commitment to balance public interest with the needs of those who depend on its services.
While providing this relief, the GPSSA emphasised the importance of compliance with pension and social security laws.
The authority commits to helping small businesses remain compliant by providing guidance and resources to help employers understand their legal responsibilities and meet insurance requirements.
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