UAE: No Fines For Small Companies On Late Registration Of Emirati Employees

Some UAE companies will be exempted from fines for late registration of Emirati employees . The initiative, which targets small businesses employing four or fewer UAE nationals, will be granted a waiver from additional amounts incurred due to delays in registering insured employees or failing to process end-of-service cases within the required timeframes.

The move by the General Pension and Social Security Authority (GPSSA) will benefit approximately 1,906 small private-sector employers and cover fines incurred between January 1, 2024 and April 30, 2025.

It is part of GPSSA's efforts to support small private sector businesses, which play a vital role in the national economy. By reducing their financial burdens, the initiative enables these businesses to improve their financial stability, reinvest in growth, and make a greater impact on the national economy, thereby contributing more to the GDP.

"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.

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"This step aligns with our wise leadership's vision and tireless efforts to eliminate bureaucracy, streamline processes, and ease burdens on the business sector, enhancing the country's business environment and attracting more investment."

Eligible small businesses will be contacted directly, with no further action required on their part, as part of the 'Zero Government Bureaucracy' programme. Businesses that do not receive a direct notification are not included in this initiative.

The authority also emphasised the importance of adhering to pension and social security laws, reaffirming its commitment to helping small businesses remain compliant. Support includes providing clear guidance and resources to help employers understand their legal responsibilities and meet insurance requirements, ensuring the rights of both employees and employers are protected.

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