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New COVID Wage Supplement Scheme


A new version of the COVID wage supplement scheme was announced on Tuesday, in line with in the Budget measures for 2021.


As of January, the amounts of wage supplements will be calculated according to drop in sales. This change is being worked out according to VAT Returns submitted.


The new scheme will now include replacement of employees. These will also be eligible for the wage supplement as from October 2020.


Businesses who have engaged new employees to replace those who voluntary resign will become eligible for a wage supplement subject to the following:


a. The number of employees receiving wage supplement should not increase beyond the

number of employees on a wage supplement as of 29th May 2020.

b. The wage supplement for those employees replaced will be paid from October 2020

c. Applicant has to provide a written declaration, that termination was on a voluntary

basis; and

d. Applicant declares that employment conditions for the employee being replaced are

not less favourable than those of employees being replaced.


These significant changes are being undertaken to assist those business which were hit the most through the pandemic. As such, instead of providing assistance depending on the NACE codes, businesses will now be given assistance according to the losses incurred.


The support level will be calculated according to the difference in turnover declared over six months between March and October 2019, against turnover declared between March and October 2020.

 

Percentage drop Wage supplement Wage supplement

in sales monthly rate (gross) monthly rate (gross)

- full timers - part timers & casuals

 

55% or greater €800 €500

45% up to 54% €640 €400

35% up to 44% €480 €300

25% up to 34% €320 €200

10% up to 24% €160 €100

Increase in revenue €0 €0

up to 9% drop in sales

 

Businesses which had to close down following the issuance of Legal Notices by the Superintendent of Public Health, will continue to receive the wage supplement at the maximum rate.


Businesses are not required to re-apply as Malta Enterprise will be using the same application originally submitted.