The Minister for Energy and Enterprise, Miriam Dalli and Malta Enterprise Chief, Kurt Farrugia have announced that the wage supplement scheme currently administered by Malta Enterprise has been revised in order to assist those businesses which were mostly hit by the pandemic. With effect from 1 January 2021, businesses will now be given assistance according to the losses incurred during the pandemic, rather than by what the economic classification (NACE code) they appertain to.
The support level will be calculated in accordance with the percentage drop in sales which results from the VAT returns filed over the six-month periods between March and October 2019, and March and October 2020. Businesses who have already applied under the previous Wage Supplement Scheme, are not required to re-apply.
Eligible Wage supplement amount per employee will be calculated as follows:
Furthermore, those businesses which had to close down following the issuance of an order by the Superintendent of Public Health, will receive the wage supplement in full.
The current scheme is also available to those businesses who engaged new employees to replace those who have voluntarily resigned, provided that:
- the number of employees receiving the wage supplement must not be higher than the number of employees who were receiving such supplement as of 29th May 2020;
- the wage supplement for those employees replaced will be paid from October 2020;
- the applicant has to provide a written declaration, signed by a legal representative, confirming that the termination was on a voluntary basis; and
- the legal representative of the applicant declares that the conditions of the employee being replaced are not less favourable than those of employees being replaced.
This wage supplement means a government outlay of €40m per month intended to help businesses to survive and also encourage economic growth in the midst of the pandemic.
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