New wage subsidy scheme depending on business performance announced
5 January 2021
Minister for Energy and Enterprise Miriam Dalli and CEO of Malta Enterprise Kurt Farrugia announced new calculation methods for the wage supplement allowed to businesses affected by COVID-19.
Eligibility for the scheme and the amount of support awarded will be calculated on the percentage of decrease in the sales of a business. This will be worked out by comparing the VAT returns of 2019 with those of 2020.
Businesses which performed better or did not see a drop in their sales of more than 9% will not be entitled to the subsidy. Businesses which saw a drop in sales of 55% or more are to continue to receive the full wage supplement of €800 for full-time workers. Businesses which were closed as the result of a Legal Notice issued according to the advice of the Superintendent of Public Health shall also continue to receive the full supplement.
The supplement for other businesses shall be calculated according to the following scale:
- Drop in sales of between 10% and 24% – €160 per employee per month
- Drop in sales of between 25% and 34% – €320 per employee per month
- Drop in sales of between 35% and 44% – €480 per employee per month
- Drop in sales of between 45% and 54% – €640 per employee per month
Cover worker substitution will also be included in the 2021 scheme as long as the company in question does not have more employees on its books than it did last May.
With the government investing €40m per month into this scheme, Hon. Dalli stated that this scheme not only aimed to save jobs and businesses, but also to encourage growth in the island’s economy.
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