25 Mar Covid-19 Announcement – Malta’s third financial aid package
As outlined in our previous article, a mini-budget was announced on March 18th 2020. On 24th March 2020, the Prime Minister announced additional measures to support businesses and safeguard jobs. This package is estimated to a total of €70 million per month. A summary of the measures has been outlined by GCS Malta’s team below.
Malta Enterprise will be launching an online portal for businesses to clarify if they apply to such measures through their NACE code and VAT registration number. These measures will apply as from 9th March 2020.
Financial aid to critically hit business sectors
The following business sectors which have been identified as having been critically hit by the COVID-19 pandemic (covering 60,000 employees) will receive Government aid, in total amounting to around €44m per month.
- Certain wholesale activities
- Certain retail activities
- Food and beverage service activities
- Rental and leasing of motor vehicles
- Employment activities
- Travel agencies, tour operators and related activities
- Security and investigation activities
- Service to buildings
- Creative, arts and entertainment activities
- Personal services activities
The Government will finance up to €800 per month of each employee’s monthly salary, to the above sectors. Self-employed persons in the said sectors are also eligible for this measure.
In the case 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 an 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 for Industrial And Employment Relations.
Financial aid to less critically hit sectors
The following are the sectors that are considered to have been less critically hit:
- Part of the wholesale sector
- Part of the retail sector
This measure covers approximately 50,000 employees and is expected to cost the Government around €17m per month. With the above sectors, the Government will finance one day’s salary per week (based on a monthly salary of €800) per employee. The possibility of this measure being increased to two days was mentioned by the Prime Minister, however, further details have not yet been given.
Self-employed persons are eligible for the above measures if they work in the outlined sectors. Additional assistance will be provided to self-employers who employ individuals and come from less critically hit sectors.
Part-timers working in the above sectors will also be eligible for these measures based on a pro-rata basis (by reference to a deemed monthly salary of €500).
In addition to the previously mentioned measures, the Government will be financing a further one day’s salary per employee (based on a monthly salary of €800) working in less critically hit sectors (this in addition to one day paid salary introduced for Maltese businesses operating in the same sectors).
The Prime Minister announced that payments related to employees will be made directly to the employer and not to the employee.
How can GCS Malta help?
Further in-depth details on the above-mentioned measures will need to be outlined. Our team of professionals at GCS Malta are continuously following developments to provide you with the latest updates. Our experienced staff are here to guide and aid you in these tough times. Contact GCS Malta now on [email protected]