UAE authority waives penalties for small private sector employers

The General Pension and Social Security Authority (GPSSA) has launched an initiative to exempt small private sector employers, subject to federal pension laws, from additional charges incurred due to delays in registering insured employees or reporting terminated employee cases within legal deadlines.

The initiative aims to strengthen the financial position of these companies, enabling them to reinvest in their operations, expand their businesses, and contribute more effectively to the GDP, GPSSA said.

Mubarak Rashid Al Mansouri, Chairman of GPSSA, stated: “The initiative embodies our ongoing commitment to fostering a supportive investment environment aligned with the UAE’s vision to enhance economic growth and entrepreneurship. It also encourages private sector companies to prioritise Emiratisation as a core part of their strategies, helping them attract and retain Emirati talents. Additionally, it provides social security and financial stability for Emirati employees in the private sector.”

Firas Abdul Karim Al Ramahi, Director General of GPSSA, emphasised that the initiative reflects the authority’s approach to empowering the business sector, the backbone of the national economy, while alleviating financial burdens on small companies.

The initiative allegedly targets approximately 1,906 private sector employers with 4 or fewer insured Emirati employees, ensuring support reaches the most needy and impactful segment.

The exemption is said to cover additional charges accrued from January 2024 to April 2025 while charges outside this period will be handled flexibly on a case-by-case basis, considering individual circumstances.

The authority affirmed that eligible small business owners will be directly notified of the exemption, in line with the “Zero Government Bureaucracy programme, requiring no action on their part.