Energy, Enterprise and Sustainable Development Minister Miriam Dalli on Tuesday announced new details behind Malta’s 2021 wage supplement scheme, which will see COVID business aid no longer be calculated on the basis of an entity’s NACE categorisation, but on loss of turnover.
A new method for calculating wage support for businesses hit by the pandemic had been announced in the 2021 Budget and has been described as a “fairer” system.
At a press conference jointly addressed with Malta Enterprise CEO Kurt Farrugia, Dr Dalli revealed that the updated support measures will see the Government fork out €40 million monthly but described the new system as a “fairer” one.
The support level will be calculated according to the difference in turnover declared by a business over six months between March and October 2019, against turnover declared over six months between March and October 2020.
The new system caters for three different types of VAT procedures: Monthly VAT returns, quarterly VAT returns and yearly VAT returns.
For VAT exempt and new VAT numbers, the level of support will be paid according to the current scheme (Annexes A, B & C), which are determined according to the NACE code categorisation.
Drop in sales between 55 per cent or more - €800 per worker per month
Drop in sales between 45 per cent and 54 per cent - €640 per worker per month
Drop between 35 and 44 per cent - €480 per worker per month;
Drop between 25-34 per cent - €320 per worker per month;
Drop between 10-24 per cent - €160 per worker per month.
Businesses which had to close down following the issuance of legal notices by the Superintendent of Public Health will continue to receive the wage supplement at the maximum rate.
Both Minister Dalli and Mr Farrugia, in their address, stressed that this is not the only assistance being given to businesses, and reminded the audience of utility bill subsidies and rent subsidies being provided to help businesses navigate through COVID.