Coronavirus: Government should cover 50% of workers’ salaries, employers say

Four employer bodies are urging the government to support businesses in retaining staff, in light of the impact of Covid-19, by covering 50% of workers’ salaries.

The businesses would themselves pay 25% of the salaries, capped at the average wage, according to the measures put forward on Wedensday by the Malta Chamber of Commerce, Chamber of SMEs, Malta Employers’ Association and Malta Hotels and Restaurants Association.

The proposal effectively means that employees would suffer a 25% cut in their salaries.

The four bodies also said that, in the case of self-employed persons in difficulty, 75% of their basic income should be paid by the government, capped at the average wage.

Moreover, they said the government should guarantee loans to assist businesses to keep their staff and ensure continuity, with no collateral requirement.

The bodies said that in the circumstances related to the economic repercussions of Covid-19, they were insisting that government support businesses by putting in place the measures they proposed.

The eligibility for support would be based on the businesses suffering a loss of 25% or more in turnover in the January to June 2020 period relative to the same period in 2019.

The following are the measures the four bodies are insisting are put in place:

• Support to retain staff on payroll by 50% of the basic wage being paid by government and 25% paid by the employer, capped at the average wage
• Support for self-employed persons in difficulty by government paying 75% of their basic income, capped at the average wage
• Government-guaranteed loans to assist businesses to retain staff and ensure continuity, with no collateral requirement