Companies whose income decreased by 55% or more due to the Covid pandemic, will continue to receive the wage supplement fully till the end of the year, and therefore will not see any change in the given assistance.
This was announced in a statement by the Minister in the Prime Minister’s Office and the Ministry for Enterprise which stated that the wage supplement will continue to be given till the end of the year for all of the other companies. However, from August these companies will receive gradual reduction of the benefit according to the impact on their income.
The Government said that the aim is that companies will not stop suddenly receiving the supplement, however they will instead receive it with gradual reduction till the end of the year.
The reduction will be in two phases: with the first phase starting from August, while the second phase starts from October and leads all companies till the end of the year. Businesses will also benefit from Malta Enterprise support in rents and electricity, and the one time grant for those who experienced long restrictions.
The Government added that the change in the system has the support of the Malta Council for Economic and Social Developement. Since the pandemic emerged, the Government invested over €500 million in assistance in this scheme, through which over 17,000 private companies benefited and which means assistance to almost 100,000 families, the Government said.
Through consultation led by Minister Miriam Dalli, the Government stated that they discussed how the wage supplment assistance is effectively given and is tapered so that businesses are incentivised and will not continue to depend on the wage supplement.
The consultation led Malta Enterprise to launch incentive package worth €20 million so that Maltese and Gozitan enterprises strengthen their business model for the future.
Minister Carmelo Abela said that apart from the wage supplement, the Industrial and Labour Relations Department considered that employers can temporarily change their workers’ working conditions to safeguard jobs. This measure, he added, saved 27,000 jobs.
Businesses will be informed about this process in the coming days, through electronic communications.