The Prime Minister has rolled out a new financial package which was negotiated between the Government, the Central Bank and the social partners over the past few days. The measures were unanimously approved by Cabinet and the Malta Council for Economic and Social Development. All measures announced by the Government will apply retrospectively as from 9 March 2020. The amount of support being granted depends on the extent to which business in the respective sector has been hit.

Malta Enterprise should shortly be launching an online portal to help businesses identify, according to their applicable NACE code and VAT registration number, the measures for which they qualify.

COVID Wage Supplement

  • Full time employees of enterprises operating in sectors (listed here) that suffered drastically due to the COVID-19 pandemic or had to temporarily suspend operations on the order of the Superintendent of Public Health will be entitled to a benefit of up to five days' salary based on a monthly wage of €800. This includes all self-employed. Part-time employees will be eligible to a benefit of up to €500 per month.
  • Where the monthly salary exceeds €800, the employer is expected to pay the remaining part up to a monthly salary of at least €1,200. If any employer is not in a position to sustain the additional payment so that the particular salary reaches at least €1,200, then an agreement has to be reached with the involvement of the unions, the employees and the Department of Industrial and Employment Relations.

 

  • Full time employees of enterprises in other adversely effected sectors (listed here), including the wholesale, manufacturing and warehousing sectors, will be entitled to a benefit of up to one day's salary per week, equivalent to €160 per month. Part-time employees will be eligible a benefit of up to one day's salary per week, equivalent to €100 per month.
  • Full time employees of Gozo-based enterprises in other adversely effected sectors (listed here), will be entitled to a benefit of up to two days' salary per week, equivalent to €320 per month; for part-time employees, the entitlement will be €200 monthly.
  • Self-employed persons operating in other adversely effected sectors (listed here) who have employees will be entitled to a benefit equivalent to 2 days' salary per week, equivalent to €320 per month.
  • Self-employed persons operating in other adversely effected sectors (listed here) based in Gozo will be entitled to 2 days' salary per week equivalent to €320 per month. This will increase to 3 days' salary, equivalent to €480, for those self-employed who employ staff, with employees being be entitled to two days' salary per week.

Application Form

One is required to complete and submit an online application form which is to be made available shortly on the Malta Enterprise website (http://covid19.maltaenterprise.com).  Details as to the deadline by when applications for these benefits may be submitted are yet to be announced.

How can we help?

We are monitoring developments in this regard and will provide updates as more information becomes available. Meanwhile, should you require any assistance relative to how your business may benefit from the previously announced Teleworking Scheme (extended deadline for applications – Friday 8 May 2020), Tax Deferral Scheme (deadline for application – 15 April 2020) and Malta's Financial Aid package generally, please do not hesitate to reach out to us personally.

The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.