Malta

Covid Wage Supplement Scheme 2021

The Covid Wage Supplement Scheme has been improved to not only safeguard current jobs but also to encourage further business growth.

The Scheme introduced the following improvements:

1. Replacement of employees

Applicants will be able to replace employees who voluntarily resigned from their employment during the summer of 2020. However, the number of eligible applicants should not exceed the number of employees listed as at end of May 2020. The salaries of replaced employees will be paid from October 2020.

2. Eligible applicants

The same sectors previously outlined in Annex A, B and C remain eligible for the Scheme.

3. Calculating the wage supplement

Malta Enterprise will be calculating the eligible applicant’s assistance according to the losses incurred during the pandemic. The wage supplement will continuously be paid monthly. Eligible applicants are not required to re-apply. 

4. VAT procedure

Malta Enterprise will be liaising with the VAT Department for the necessary data related to the eligible applicant VAT number. The new procedure will cater for three different methods as follows:

  1. Monthly VAT returns;
  2. Quarterly VAT returns; and
  3. Yearly VAT returns.  

According the above chosen method, the assistance will be computed by calculating the difference in turnover declared in the prior year between March and October.

The supplement will be calculated according to the percentage drop in sales as shown in the below table.

Percentage drop in sales

Wage supplement monthly rate (gross) – full timers

Wage supplement monthly rate (gross) – part timers & casuals

55% or >

Euro 800

Euro 500

45% - 54%

Euro 640

Euro 400

35% - 44%

Euro 480

Euro 300

25% - 34%

Euro 320

Euro 200

10% - 24%

Euro 160

Euro 100

Increase in revenue up to 9% drop in sales

Euro 0

Euro 0