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.