24th March 2020
On Tuesday evening the Government of Malta announced an economic package as agreed with the Malta Council for Economic and Social Development which contains additional and revised measures intended to aid businesses that have been adversely hit by the spread of the corona virus.
The main highlight of this package is that the government will give €800 per month for each employee of businesses within the private sector which have been hardest hit by the corona virus. In cases where the employee earns more than €800 per month, the government announced that the employer is expected to top up the remaining amount up to a maximum wage of €1,200 per month. Employers who are unable to top up this amount due to current financial difficulties are to reach an agreement with unions, employees and the Department of Industrial and Employment Relations. This is applicable retrospectively as of 9th March 2020.
The critical sectors which will benefit from this financial aid package are: retail, accommodation, food and beverage service activities, vehicle rentals, employment activities, tour operators, travel agencies and other related enterprises, security companies, building services companies, transport companies, creative, arts, and entertainment activities, personal activities – such as barbers, beauticians, and other similar enterprises.
For other sectors such as manufacturing, wholesaling and warehousing the government will be paying for one day of work on a base salary of €800 per month for each employee. The government is looking at possibilities to increase this incentive to two paid days per employee per month.
Gozitan companies will benefit immediately from the two days per employee based on a salary of €800 per month for each employee.
Similarly, part-time workers will also be able to benefit from the above schemes on a pro-rata basis and capped at €500 per month.
An online portal will be created where businesses and self-employed individuals can key in the NACE Code relating to their corresponding business sector as provided by Malta Enterprise. This will allow businesses and self-employed individuals to apply online for the incentives available to them.
100,000 employees are estimated to benefit from such incentives costing the government around €70,000,000 per month.
For further support on these newly introduced measures. Please contact Markita Falzon on [email protected]