The Prime Minister of Malta, after long negotiations between the government, the central bank, and the social partners the Malta Council for Economic and Social Development (MCESD) over the past few days, and with unanimous support of the Cabinet, announced a second package of financial aid to increase its aid to businesses hit by COVID-19 slowdown.
A Total Aid Package of €70 million per month
for businesses hit severely by COVID-19 slowdown.
“We have reached a historic pact with the social partners that defines the greatness of the Maltese people in unprecedented circumstances,” the Prime Minister told a press conference attended by the social partners.
“We have agreed a package not only to fight coronavirus from a health point of view but also to counter the economic impact. This is a package which injects hope, confidence and courage for the future.”
Financial Package for Businesses in Critical Sectors
The critical sectors covered by this benefit include: wholesale, retail, accommodation, food and beverage service activities, vehicle rentals, employment activities, tour operators, travel agencies and other related enterprises, security companies, building services companies, transport companies, creative, arts, and entertainment activities, personal activities – such as barbers, beauticians, and other similar enterprises.
€44 million per month for self-employed & employees
100%+ for employees on minimum wage.
60,000 mostly full-time employees and self-employed will benefit from Government salary of €800 per month. Employers need to to make up the difference of €400 on top of the government subsidy for employees on salaries of €1,200 per month.
Financial Package for Businesses in 2nd Tier Sectors
With representatives of the social partners behind him, the Prime Minister said that for other sectors,
50,000 employee €17 million per month
for businesses also hit by COVID-19 slowdown
In the second category of employees, those hit less directly: manufacturing, wholesale, warehousing and retail, the Government will be paying the equivalent of one day of a salary of €800. Employees on salaries of over €1,200 as well as their employers need to be flexible to meet as much as possible the larger extent
Applicability of Business Aids
The Government will provide a portal where a business' NAS Code and VAT Number can be entered to confirm eligibility for benefits under this Aid Package for Business.
All benefits apply retrospectively from 9th March
as long as the employer re-instates any person made redundant.
Gozo
Due to Gozo's double insularity, being an Island in an Island and due to its dependence on tourism, it is clear that Gozo is hit worse than Malta.
The second category will be receiving the equivalent of 2 days of work.
Part-timers. Same measures apply pro rata.
Appeal for flexibility. All have to be reasonable in saving employment. Employers should do their best to preserve original salaries. Employees should also be understanding and flexible.
