UAE pension authority announces penalty waivers for small private firms

The General Pension and Social Security Authority (GPSSA) has introduced an initiative to waive penalties for small private firms over delays in registering employees or processing end-of-service benefits.

Making the announcement, the authority said it will target approximately 1,906 firms that have no more than four Emirati nationals in its workforce. 

The waiver will cover fines incurred between January 1, 2024, and April 30, 2025, the authority said, adding that any additional payments outside this period will be reviewed on a case-by-case basis.

The initiative is part of the 'Zero Government Bureaucracy' programme that aims to support small businesses improve financial stability, reinvest in their growth and make a greater impact on the national economy.

The waiver also specifically aims to strengthen Emiratisation efforts within the private sector. By easing financial pressures on small businesses and enabling local talent, it enhances their ability to attract and retain Emirati nationals as a part of its workforce.

The GPSSA said eligible small businesses will be contacted directly, adding that those that do not receive a direct notification will not be included in the initiative.

According to the UAE pension law, both employers and employees must register and contribute on time.