Covid 19 Wage Supplement: Measures for Businesses and Employees

by EMD Advocates Taxation Malta Company

COVID WAGE SUPPLEMENT

The Covid 19 Wage Supplement provides employee with a basic wage cover to address the disruption caused by the COVID-19 pandemic. In order to simplify administrative processes funds will be forwarded to employers who will be obliged to guarantee that the Covid Wage Supplement as established below is forwarded to the employee.

Full time employees of enterprises operating in sectors that suffered drastically due to the COVID-19 pandemic or had to temporarily suspend operations on the order of the Superintendent of Public Health will be entitled to up to five days’ salary based on a monthly wage of €800. This includes all self-employed. Part-time employees will be eligible €500 per month. Annex A (below) contains the list of sectors by NACE.

Full time employees of enterprises in other adversely affected sectors (Annex B below), including wholesale, manufacturing and warehousing will be entitled to one days’ salary per week equivalent to €160 per month. Part-time employees will be eligible to one day’s salary per week, equivalent to €100 per month. In the case of Gozo based enterprises this will increase to two days’ salary per week equivalent to €320 per month for full time employees, and €200 per month for part time employees. Annex B(below) contains the list of sectors by NACE.

In case of self-employed in other adversely affected sectors (Annex B) who have employees will be entitled to two-days’ salary per week equivalent to €320 per month.

Self-employed based in Gozo operating in other adversely affected sectors (Annex B) will be entitled to €320 per month. This will increase to €480, for those self-employed who employ staff, and the employees will be entitled to 2 days salary calculated on €800 a month.

It is understood that in various instances, when the operations are completely closed down due to Covid measures taken by Government. employees might be asked not to attend to work. In such cases an employee supported through this measure cannot be asked to take unpaid leave and the employer is obliged to pass on, as a minimum, the €800 wage subsidy less the employee’s national insurance contribution and government taxes to the employee.

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