Government Aid in relation to Covid-19 — Malta

The Prime Min­is­ter of Mal­ta just addressed a Press Con­fer­ence in which he announced a new finan­cial aid pack­age for those sec­tors hit by the Coro­n­avirus out­break. These mea­sures shall be added to the pre­vi­ous mea­sures announced by the Gov­ern­ment.

Watch the video, in which I explain the gov­ern­ment aid in rela­tion to Covid-19 in Mal­ta:


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In the past few days we have received many requests from var­i­ous enter­pris­es regard­ing eco­nom­ic sup­port mea­sures in rela­tion to covid-19.

In this post, I will break down each mea­sure into dif­fer­ent cat­e­gories and briefly explain what each mea­sure entails, there­by, mak­ing it eas­i­er for you to under­stand whether you are eli­gi­ble for such mea­sures or not.

I am going to go ahead and start with what is prob­a­bly the most sig­nif­i­cant mea­sure:

The wage supplement measure

This mea­sure is aimed at ensur­ing that each employ­ee is pro­vid­ed with, at least, a basic wage. We can split this mea­sure into three dif­fer­ent cat­e­gories:

Cat­e­go­ry num­ber 1 deals with those employ­ees work­ing in indus­tries which have:

  1. Either been dras­ti­cal­ly impact­ed; or
  2. Had to sus­pend their oper­a­tions due to the covid-19 out­break

Such employ­ees are enti­tled to up to 5 days’ salary per week based on a month­ly wage of €800 per month.

Whilst part time employ­ees are enti­tled to €500 per month.

Self-employed per­sons are includ­ed in this mea­sure, and, there­fore, are also eli­gi­ble for up to 5 days’ salary per week.

The sec­ond cat­e­go­ry deals with those indus­tries which although did not need to sus­pend oper­a­tions, were still adverse­ly affect­ed, such as the man­u­fac­tur­ing and whole­sale sec­tors.

This sec­tion is cat­e­go­ry is fur­ther divid­ed into anoth­er two sec­tions: Mal­ta based enter­pris­es and Gozo based enter­pris­es:

  • Employ­ees work­ing in such indus­tries, in Mal­ta, are eli­gi­ble for 1 days’ salary per week, which is equiv­a­lent to €160 per month.
  • Part time employ­ees who also work in such indus­tries are also eli­gi­ble for 1 days’ salary per week, which in their case is equiv­a­lent to €100 per month.
  • On the oth­er hand, employ­ees work­ing at a Gozo based enter­prise are eli­gi­ble for 2 days’ salary per week, which is equiv­a­lent to €320 per month, whilst part time employ­ees are eli­gi­ble for €200 per month.

The third cat­e­go­ry is linked to the sec­ond one, since it also deals with those indus­tries which have been adverse­ly affect­ed by covid-19.

  • Self-employed per­sons who have employ­ees and have been adverse­ly hit by covid-19 shall be enti­tled to 2 days’ salary per week, equiv­a­lent to €320 per month.
  • The Gov­ern­ment has also made a dis­tinc­tion between those self-employed based in Mal­ta and those self-employed based in Gozo:
    • Gozo based self-employed per­sons who have employ­ees shall be enti­tled to €480 per month and if they do not have employ­ees, they shall be enti­tled to €320 per month.
  • There­fore, by way of com­par­i­son, apart from the fact that Gozo based enter­pris­es are giv­en high­er sup­ple­ments, in this case, adverse­ly affect­ed self-employed per­sons based in Mal­ta, shall not be eli­gi­ble for any sup­ple­ment if they do not have employ­ees, whilst Gozo based self-employed per­sons who have employ­ees, shall still be eli­gi­ble for €320 per month.

In each giv­en case under the wage sup­ple­ment mea­sure, the funds shall be for­ward­ed to the Employ­ers who are then oblig­ed to dis­trib­ute such sup­ple­ments to their Employ­ees accord­ing­ly.

The second corona measure is the Deferral of Payment of Taxes

Through this mea­sure, pay­ments of Pro­vi­sion­al Tax, VAT and Nation­al Insur­ance Con­tri­bu­tion on Salaries shall be deferred by two months for enter­pris­es and self-employed per­sons.

Up to now, this mea­sure shall apply for tax­es owed until the end of April, how­ev­er, the Gov­ern­ment will be study­ing fur­ther exten­sions to such peri­od depend­ing on how the sit­u­a­tion will evolve.

It is impor­tant to note that dead­lines for sub­mis­sion of forms should stll be adhered to.

To be eli­gi­ble, com­pa­nies and self-employed per­sons must prove a down­turn in their turnover as a result of eco­nom­ic con­straints aris­ing from the pan­dem­ic.

There­fore, for exam­ple, a drop in sales of around 25% or over would ren­der a com­pa­ny or self-employed per­son eli­gi­ble for such mea­sure.

The third covid-19 measure is further liquidity initiatives

Liq­uid­i­ty is prob­a­bly one of the main con­cerns of var­i­ous enter­pris­es. We can­not stress enough how impor­tant it is for an enter­prise to remain liq­uid, espe­cial­ly in these unpar­al­leled times.

There­fore, for those enter­pris­es request­ing oper­a­tion loans, the Gov­ern­ment announced that there shall be allo­cat­ed €900 mil­lion in bank guar­an­tees with low inter­est rates and longer repay­ment peri­ods.

In order to ease the bur­den of bank loans, there shall be a three month mora­to­ri­um from banks for both busi­ness and per­son­al loans.

The fourth initiative relates to social measures

There are four social mea­sures which have been announced by the Gov­ern­ment:

The first mea­sure relates to cas­es in which par­ents had to stay at home to take care of their chil­dren.

In such cas­es, where both par­ents work in the pri­vate sec­tor, the par­ent stay­ing at home shall receive a direct pay­ment of around €166 per week.

If the par­ent works part time, he or she shall receive approx­i­mate­ly €103 per week.

Sin­gle par­ent fam­i­lies hav­ing school-aged chil­dren are also includ­ed under this mea­sure.

It is impor­tant to note that this mea­sure applies for those who can­not car­ry on with their work through remote work­ing.

The sec­ond mea­sure regards per­sons with dis­abil­i­ties who work in the pri­vate sec­tor and opt to stay home for health and safe­ty rea­sons. Such per­sons shall be receiv­ing around €166 per week if they work full time and €103 per week if they work part time.

Through the third mea­sure, those employ­ees who had their job ter­mi­nat­ed as of the 9th of March, shall be receiv­ing around €166 per week if they were work­ing full time or €103 per week if they were work­ing part time and Self-employed per­sons are also includ­ed under this mea­sure.

The fourth mea­sure is an increase in rent sub­si­dies for those per­sons who became unem­ployed.

Quarantine Leave is the fifth measure of Maltese government

Quar­an­tine must be one of the most trend­ing words on social media right now.

So, employ­ers are enti­tled to a one time grant of €350 for mem­bers of their staff who have been on manda­to­ry quar­an­tine leave.

This mea­sure also includes those instances where­in mem­bers of staff had to quar­an­tine them­selves due to con­tact trac­ing.

One must note that this mea­sure is only applic­a­ble in rela­tion to full time employ­ees.

The sixth measure is assistance in relation to teleworking activities.

Many enter­pris­es who are able to work remote­ly have been invest­ing in tech­nol­o­gy to enable them to car­ry on with their busi­ness.

All those enter­pris­es who opt­ed to invest in tech­nol­o­gy enabling tele­work­ing, shall be enti­tled to a grant of up to €500 for each tele­work­ing agree­ment, and up to €4,000 for each under­tak­ing.

The costs of such invest­ments shall be incurred between the 15th of Feb­ru­ary 2020 and the 8th of May 2020 and the grant shall cov­er 45% of such costs.

If an employ­ee had a tele­work­ing agree­ment pri­or to the 15th Feb­ru­ary 2020, such agree­ment shall not be con­sid­ered as part of the invest­ment eli­gi­ble for a grant under this mea­sure.

Should you require any fur­ther infor­ma­tion or assis­tance on the Gov­ern­ment Aid in rela­tion to the out­break of the Coro­n­avirus, you can send us an email on or call our offices on 21377700


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