Update to COVID-19 Wage Supplement January-March 2021

Malta Enterprise launched the revised wage supplement applicable for the period January-March 2021. These amendments are aimed for a fairer system that continue to assist enterprises which are most in difficulty.

The wage supplement entitlement will remain open to those businesses that were eligible to date. The supplement will continue to be disbursed on a monthly basis. The original submitted application will remain effective and thus there is no need to re-apply.

Wage supplement calculation criteria

  • The eligible wage supplement amount will no longer be based on the NACE codes. Now it will be determined on the loss of activity during the pandemic.
  • The new system will compare the turnover declared in the vat returns 2020 with same period 2019. There is an agreement in place between Malta Enterprise and the Vat Department for the sharing of data.
  • The system caters for 3 different types of vat procedures: Monthly vat return; quarterly vat returns, yearly vat returns.

E.g. Quarterly vat returns

Change in turnover will be worked out by comparing the vat returns declared over 6 months period March-October 2020 against March-October 2019. The percentage drop will determine the support level.

  • Due to comparative difficulty, the wage supplement of exempt vat numbers and new vat numbers registered in 2020 will be continuing to be worked out according to their respective NACE code.
  • Businesses which had to close down due to legal notices issued by the Superintendent of Public Health, will continue to receive the full wage supplement.

Replacement of employees

  • Supplement will be given for new employees that were engaged to replace those who voluntarily resigned.
  • For any business, the number of employees entitled for the wage supplement shall not exceed the number that received the wage supplement as of 29 May 2020.
  • Wage supplement for employees replaced will be paid from October 2020.
  • The business legal representative should declare that the resignation was voluntarily and employment conditions of those engaged are not less than those replaced.

Covid-19 Parent Benefit Scheme

The Government re-introduced the Parent Benefit Scheme to financially assist working parents employed in the private sector and are not able to work from home.


Persons eligible are:

  • Parents of children under age 16;
  • Parents working full-time or part-time in the private sector;
  • Do not have teleworking/possibility to work from home;
  • Not attending work and are on unpaid leave to take care of their children between 15th March and 11th April 2021; and
  • Employer is not receiving the Wage supplement on their behalf.

Persons not eligible are:

  • Employees working with private companies, and who provide a service in a Government department or entity.

What are the benefits:

  • Net direct payment of €166.15 per week for full-time employees or €103.85 per week for part-time employees. Social Security contribution will be paid by the government.
  • If entitled for Children allowance, the rate will be adjusted taking into consideration the new income earned and this may increase up to the maximum rate of €24.08 per week per child;
  •  If entitled to the In Work Benefit, this will continue to be paid without deductions; and
  • If entitled to the Tapering of Benefits, this will also continue to be paid without deductions;

How to apply:

Fill in and submit the application https://socialsecurity.gov.mt/en/information-and-applications-for- benefits-and-services/grants-bonuses-and-schemes/covid-19-parent-benefit/ . You also need to provide a declaration from your employer which shows that you cannot work from home, you are on unpaid leave and your employer is not receiving Wage Supplement on your behalf. This declaration is to be uploaded in the dedicated area of the online application.