The targeted waiver is part of GPSSA’s broader efforts to support the UAE’s economic diversification and empower small businesses
The UAE’s General Pension and Social Security Authority (GPSSA) has introduced a new initiative aimed at easing financial pressures on small private sector businesses in the Emirates.
The program exempts eligible employers — covered under federal pension laws — from paying additional penalties incurred due to late registration of Emirati employees or delays in processing end-of-service benefits.
This targeted waiver is part of GPSSA’s broader efforts to support the UAE’s economic diversification and empower small businesses, which are key drivers of employment and growth in the national economy.
Supporting growth and Emiratization
By lifting financial burdens, the initiative allows small businesses to focus on improving financial stability, reinvesting in operations, and contributing more effectively to the UAE’s GDP.
It also plays a direct role in advancing Emiratization, enabling companies to better attract and retain Emirati talent by reducing the cost of compliance.
The program specifically targets around 1,906 small private sector employers with no more than four Emirati employees, ensuring support is directed where it is needed most.
The waiver applies to penalties accrued between January 1, 2024, and April 30, 2025. Cases outside this timeframe will be reviewed individually, with GPSSA assessing specific circumstances to determine eligibility — reflecting the Authority’s commitment to fairness and flexibility.
Enabling small businesses to grow
Faras Abdul Karim Al Ramahi, director-general of GPSSA, emphasized the strategic importance of the initiative. He stated: “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,” he added.
The initiative is also aligned with the ‘Zero Government Bureaucracy’ program, meaning eligible businesses will be contacted directly — no action is required on their part. Businesses not receiving communication from GPSSA are not included in this phase of the program.
Ongoing support for compliance
GPSSA reaffirmed the importance of complying with pension and social security regulations and pledged to continue providing support and resources to help businesses meet their legal obligations.
Clear guidance and educational tools will be made available to help employers navigate registration processes, ensure timely reporting, and protect both employee and employer rights.
This initiative highlights the UAE’s proactive approach to creating a business-friendly, transparent, and inclusive economy, reinforcing the nation’s commitment to both economic resilience and social equity.
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