As expected, the Government announced additional measures to alleviate the financial burden due to the COVID-19 pandemic. These additional measures follow the order of the Superintendent of Public Health to close non-essential businesses as from Monday 23 March 2020.
The Government will provide for a monthly subsidy to employers consisting of:
- €800 for each full time employee within the private sector who have been severely affected by the COVID-19 pandemic. Employers are expected to top up the remaining part of the monthly wage up to a maximum of €400 for each employee. Employers who are not in a position to pay the remaining wage must reach an agreement with the employees through the involvement of unions and the Department for Industrial and Employment Relations. Pro-rata subsidies are also available to part time workers with a maximum subsidy of €500 per month. The list of businesses that fall within this wage subsidy are listed here – https://covid19.maltaenterprise.com/wp-content/uploads/2020/03/Annex-A-Sectors.pdf
- One day’s salary per month based on a monthly salary of €800 per employee for adversely affected businesses. Pro-rata subsidies are also available to part-time workers with a maximum subsidy of €100 per month. In the case of Gozo based businesses, this will increase to two days’ salary per week equivalent to €320 per month for full time employees, and €200 per month for part time employees. The list of businesses that fall within the ambit of this wage subsidy are listed here – https://covid19.maltaenterprise.com/wp-content/uploads/2020/03/Annex-B-Sectors.pdf
The above measures apply also to self-employed persons working within the applicable sectors. All measures are subject to the approval of the Malta Enterprise.
Apart from the above, the Government will also be providing business guarantees from the National Development and Social Fund and EU funds for operational loans with low interest rates and longer repayment periods whilst commercial banks are processing a three-month moratorium on business or personal loans.