New wage subsidy scheme for Maltese businesses announced

Newly-appointed Energy and Business Minister Miriam Dalli announced a new wage subsidy scheme which is based on the level of losses suffered by businesses as a result of COVID-19. Government’s assistance will be basedon VAT returns as compared to the same period in 2019.

The revised system will come into effect as of this month, with businesses performing better than before the crisis or suffering only minor losses (9% or less), no longer being eligible for the wage supplement.

On the other hand, businesses which saw a drop in sales of 55 per cent or more will continue to get the full wage supplement of €800 per worker monthly.

The subsidy for other businesses will be as follows:

Drop in sales between 45 per cent and 54 per cent – €640 per worker per month.

Drop between 35 and 44 per cent – €480 per worker per month;
Drop between 25-34 per cent – €320 per worker per month;
Drop between 10-24 per cent – €160 per worker per month.

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

Malta Enterprise CEO Kurt Farrugia, addressing the press conference, added 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”.

In order to facilitate operations, businesses are not required to re-apply as Malta Enterprise will be using the same application originally submitted by applicants.