The UAE’s General Pension and Social Security Authority (GPSSA) has launched a targeted initiative to waive financial penalties for small private sector firms that failed to register Emirati employees or settle end-of-service claims on time.
The initiative covers additional amounts incurred between January 1, 2024 and April 30, 2025. It applies to approximately 1,906 private employers with no more than four Emirati nationals on their payroll, as per federal pension law.
The move is part of broader efforts to ease compliance costs, support small businesses, and accelerate Emiratisation across the private sector. Eligible businesses will be contacted directly by GPSSA. No application is required.
Companies not notified are excluded from the scheme. Penalties outside the specified period may be reviewed on a case-by-case basis.
GPSSA Director-General Faras Abdul Karim Al Ramahi stated that the exemption is designed to alleviate financial pressure on small firms while ensuring compliance with pension obligations. He added that the measure also supports Emirati employment by helping small businesses retain and hire more UAE nationals.
The announcement aligns with the UAE government’s “Zero Government Bureaucracy” programme, which aims to streamline public sector processes and improve regulatory efficiency.
Small firms have been instrumental in the UAE’s economic diversification, accounting for a substantial share of private-sector employment. The pension waiver is designed to enhance cash flow for this segment and promote continued investment in Emirati talent.
The GPSSA reiterated the importance of legal compliance and stated that it would continue to offer support and guidance to help employers meet their pension requirements. No changes were announced to the broader pension law framework.
