Revised wage supplement for businesses based on losses incurred during pandemic

Businesses will now be given assistance according to the loss incurred during the pandemic, Enterprise Minister Miriam Dalli said.

Dalli made the announcement at a press conference on Tuesday on Malta’s revised wage supplement scheme. 

Dalli said the scheme covers replaced employees in summer 2020 to be paid from October 2020. 

“This is a new and fairer system to help businesses and self-employed who were hit worse by the covid-19 economic fallout,” Dalli said. 

Dalli said the revised scheme would see an increased investment in saving jobs, with 60% of applicants retaining the current amount of wage supplement or higher. 

Dalli said that companies who saw growth or surplus would not be eligible for the wage supplement.  

Photo: James Bianchi / MaltaToday

Dalli said the wage supplement for those employees replaced would be paid from October 2020. The applicant will have to provide a written declaration, signed by the legal representative of the applicant, that termination was a voluntary basis. 

The legal representative of the applicant must declare that the employment conditions for the employee being replaced are not less favourable than those of employees being replaced. 

Malta Enterprise CEO Kurt Farrugia said that the revised wage scheme was a much-needed significant change to assist those businesses which were hit the most.

“The scheme will reopen for those who were eligible to date. Wage supplements will be continued to be paid on a monthly basis,” Farrugia explained. 

Farrugia said that businesses are not required to re-apply as Malta Enterprise will be using the same application originally submitted by applicants. 

Dalli said that this scheme would continue to support enterprises hit by the pandemic. “Not only just to save businesses but also to help them grow and be successful,” she said. 

Supplement according to % drop in sales

55% or greater - €800 (full time) and 500 (part time)

45% up to 54% - €640 (full time) and €400 (part time)

35% up to 44% - €480 (full time) and €300 (part time)

25% up to 34% - €320 (full time) and €200 (part time)

10% up to 24% €160 (full time) and €100 (part time)