In a move aimed at supporting small private-sector enterprises, the UAE’s General Pension and Social Security Authority (GPSSA) has announced a waiver on fines for certain companies that failed to register Emirati employees or process end-of-service benefits on time.
The exemption applies specifically to businesses employing four or fewer UAE nationals and covers penalties incurred between January 1, 2024, and April 30, 2025. Approximately 1,906 small private-sector employers are expected to benefit from the initiative.
The GPSSA said the decision forms part of its broader efforts to ease financial pressures on small businesses, which play an integral role in driving economic growth and creating job opportunities for Emiratis.
“This initiative aims to create a supportive environment for small businesses, enabling them to focus on growth and success,” said Faras Abdul Karim Al Ramahi, Director General of GPSSA. “These companies are incubators of innovation and key sources of creativity and job opportunities for UAE nationals, contributing to social and economic stability.”
Al Ramahi added that the waiver aligns with the UAE’s “Zero Government Bureaucracy” programme, which seeks to streamline administrative procedures and eliminate unnecessary red tape, making it easier for businesses to operate and invest in the country.
Eligible companies will be notified directly by the GPSSA and will not be required to take any additional action. Businesses that do not receive an official notification will not be included in the current waiver.
The GPSSA also reiterated the importance of complying with the country’s pension and social security laws. It stressed its ongoing commitment to helping small businesses understand their obligations by offering guidance and resources to ensure that both employer and employee rights are protected.
By easing financial burdens and encouraging regulatory compliance, the initiative is expected to bolster the resilience of small businesses and enhance their contribution to the UAE’s GDP.
The move has been welcomed by industry observers as a timely and strategic intervention, particularly amid wider national efforts to diversify the economy and foster a more inclusive and supportive environment for entrepreneurs and small-scale employers.
