As the spread of COVID-19 continues to dominate, a revised wage supplement scheme was announced on the 5th January 2021 during a press conference addressed by the Minister for Energy and Enterprise Miriam Dalli and the head of Malta Enterprise Kurt Farrugia. Unlike the previous wage supplement scheme introduced in March 2020, this scheme which is set to come into effect this month, operates in such a way to subsidise companies by taking into account the losses suffered during the COVID-19 pandemic.
The Wage Supplement Scheme 2021 shall be based on VAT returns as compared to the same period in 2019. In turn, this scheme will aid businesses as follows:
- Businesses that witnessed a loss of 55% (or more) will be entitled to ?800 per month for full timers and ?500 per month for part timers;
- Businesses that witnessed a drop between 45% and 54% will be entitled to ?640 per month for full-timers and ?400 per month for part-timers;
- Businesses that witnessed a drop between 35% and 44% will be entitled to ?480 per month for full-timers and ?300 per months for part-timers;
- Businesses that witnessed a drop between 25% and 34% will be entitled to ?320 per month for full-timers and ?200 per month for part-timers;
- Businesses that witnessed a drop between 10% and 24% will be entitled to ?160 per month for full-timers and ?100 per month for part-timers;
- Businesses that witnessed a loss of less than 9% will not be the wage supplement scheme.
- Businesses that had to close down following the issuance of legal notices will be entitled to the wage supplement at its maximum rate.
The aforementioned system will effectively replace the previous scheme which classified businesses in different annexes depending on their VAT number. Further information with respect to the Wage Supplement Scheme 2021 is expected to be provided by Malta Enterprise in the coming days.
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.
