The UAE's GPSSA has introduced an initiative to waive penalties for small private sector employers with delays in registration and end-of-service processing, affecting 1,906 businesses. This initiative, part of the federal pension laws framework, will be effective from January 2024 to April 2025, assisting in the country's economic growth and supporting Emiratisation efforts by lessening financial burdens for small businesses.

The UAE's General Pension and Social Security Authority (GPSSA) has announced a new initiative to waive penalty payments for small private sector employers who have experienced delays in registration and processing of end-of-service benefits.

This initiative targets 1,906 small businesses subject to federal pension laws, specifically those employing up to four Emirati nationals.

The penalty waivers will apply to infractions that occur between January 1, 2024, and April 30, 2025, according to a statement from the Emirates News Agency (WAM).

Supporting Small Business Growth

The GPSSA's plan is crafted to assist smaller enterprises, which play a crucial role in job creation and economic diversification in the UAE.

By alleviating financial burdens, this waiver is expected to allow these businesses to reinvest and stimulate further growth, benefiting the national economy.

A significant goal of this measure is to propel Emiratisation efforts within the private sector, enhancing the capability of these businesses to hire and retain Emirati employees by reducing financial strain.

Faras Abdul Karim Al Ramahi, Director-General of the GPSSA, underscored the authority's commitment to supporting business vitality.

“The initiative is designed to foster a conducive environment for small enterprises, allowing them to concentrate on growth and success. These companies are hubs of innovation and employment for UAE nationals, thus contributing to the country's social and economic welfare. This aligns with the visionary leadership's goals of cutting bureaucracy, streamlining operations, and easing burdens on businesses to create a more inviting business ambiance and attract investments,” Al Ramahi stated.

Al Ramahi further emphasized that the initiative mirrors leadership efforts to simplify processes for businesses, thereby enriching the investment climate.

The GPSSA will directly reach out to eligible firms under the 'Zero Government Bureaucracy' initiative, requiring no action from the employers.

Companies not contacted are outside the scope of this program.

Any penalties outside the set timeframe will be reviewed individually, showcasing GPSSA’s balance of public interest with service users' needs.

While implementing this relief, the GPSSA stressed the ongoing importance of adhering to pension and social security laws.

The authority remains committed to ensuring small businesses adhere to these laws by providing resources and guidance to help employers fulfill their obligations and insurance needs.