GPSSA Exempts Small UAE Businesses from Penalties to Boost Economic Growth
The General Pension and Social Security Authority (GPSSA) has announced a new initiative exempting small private sector employers from financial penalties related to delayed registration of insured Emirati employees or missed end-of-service processing, aiming to ease burdens and fuel economic growth.
This measure targets 1,906 small businesses with four or fewer Emirati employees, offering relief from additional amounts incurred between January 1, 2024, and April 30, 2025. GPSSA will review any obligations outside this window on a case-by-case basis.
The initiative is part of broader efforts to support small enterprises, which GPSSA recognizes as central to job creation, innovation, and economic diversification in the UAE. By lightening financial loads, these businesses are better positioned to reinvest, grow, and contribute to national GDP.
Crucially, the waiver supports Emiratisation by enabling small firms to attract and retain UAE nationals without the added pressure of compliance-related penalties.
Faras Abdul Karim Al Ramahi, Director-General of GPSSA, said the move reflects the authority's alignment with the country's leadership vision of cutting red tape and fostering a business-friendly environment. 'This initiative aims to create a supportive environment for small businesses, enabling them to focus on growth and success,'
he noted.
Eligible businesses will be contacted directly by GPSSA and need take no action, as the initiative is rolled out under the 'Zero Government Bureaucracy' programme.
GPSSA reaffirmed its commitment to helping small businesses remain compliant by providing guidance on pension and insurance obligations, protecting the rights of both employers and employees.
News Source: Emirates News Agency
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