To date the Maltese government has announced a total of three financial aid packages in response to COVID-19's effect on the local economy. The following timeline maps out the said three financial aid packages.
24 March 2020
On 24 March 2020 the Maltese government announced its third package of financial measures in response to COVID-19's effect on the local economy. This is subsequent to the first two packages, announced on 9 March 2020 and 18 March 2020 respectively that included tax deferments, cash injections, guarantees on the possibility to opt for soft loans, and unemployment benefits.
The financial measures announced on 24 March 2020 at a glance:
All the above-mentioned measures should have retrospective application from 9 March 2020.
18 March 2020
The 2nd package of Financial aid measures announced by the Maltese government on 18 March 2020 and addresses an array of employment and social measures, including the following:
- Employees of enterprises suffering from a complete suspension of operations (such as the tourism sector, and language schools amongst others) should be entitled to 2 days' salary per week based on €800 per month.
- Self-employed individuals and self-employed individuals who are also employers (and whose work has suffered from a complete suspension of operations) should be respectively entitled to 2 days' and 3 days' salary per week based on €800 per month.
- Employees of enterprises suffering from a reduction of at least 25% in operations should be entitled to 1 day' s salary per week based on €800 per month (this measure should also apply to self-employed individuals).
- Self-employed individuals and self-employed individuals who are also employers (and whose work has suffered from a reduction of at least 25% in operations) should be entitled to a 1 day and 2 days' salary per week based on €800 per month.
- Individuals whose full-time job has been terminated as from 9 March 2020 should be entitled to a temporary increase in their unemployment benefit of up to €800 per month.
- A cap of €350 should be provided to employers for each employee on quarantine leave.
Employment Measures related to Third Country Nationals:
- All enterprises which terminate an employment contract should be denied the possibility of applying for third-country national workers.
- Applications for new third-country nationals (save for highly skilled workers) should no longer be acceptable.
- Third country nationals should be assisted in finding alternative employment in case of job termination.
- New service offering by Jobsplus to provide assistance to:
- Individuals who are resident in Malta and whose job has been terminated;
- Third-country nationals whose employment has been terminated. Assistance will also be provided in connection with work permit queries;
- Employers to seek new recruits.
- €800 per month to families with children who have both parents/guardians working in the private sector and neither one of the parent/guardian is able to telework (this measure should also apply for single parents)
- €800 per month to persons with disabilities who are unable to work from home and who have decided to stop working due to health-related concerns.
- Increase in rent subsidies to unemployed individuals as may be applicable.
14 March 2020
The financial aid measures within the first financial aid package are amongst others, intended to assist enterprises and businesses which have been affected the most by the COVID-19. The following measures were included:
- Tax deferrals with respect to income tax, VAT and social contribution dues for the months of March and April for both employed and self-employed persons.
- A 45% refund of up €500.00 per worker for those companies which invested in teleworking system.
The content of this article is intended to provide a general guide to the subject matter. Specialist advice should be sought about your specific circumstances.