The current parameters listed hereunder govern the format of the Wage Supplement as established until end of June 2020. For the newly announced Wage Supplement that shall assist in the regeneration phase (July – September) please click here.
The Covid Wage Supplement provides employee with a basic wage cover to address the disruption caused by the COVID-19 pandemic. In order to simplify administrative processes funds will be forwarded to employers who will be obliged to guarantee that the Covid Wage Supplement as established below is forwarded to the employee.
- Full time employees of enterprises operating in sectors that suffered drastically due to the COVID-19 pandemic or had to temporarily suspend operations on the order of the Superintendent of Public Health will be entitled to up to five days’ salary based on a monthly wage of €800. This includes all self-employed. Part-time employees will be eligible €500 per month. Annex A contains the list of sectors by NACE.
- Full time employees of enterprises in other adversely affected sectors (Annex B), will be entitled to one days’ salary per week equivalent to €160 per month. Part-time employees will be eligible to one day’s salary per week, equivalent to €100 per month. In the case of Gozo based enterprises this will increase to two days’ salary per week equivalent to €320 per month for full time employees, and €200 per month for part time employees. Annex B contains the list of sectors by NACE.
- In case of full-time self-employed in other adversely affected sectors (Annex B) who have employees will be entitled to two-days’ salary per week equivalent to €320 per month, part-time self-employed shall be entitled for €200 per month.
- Full-time self-employed based in Gozo operating in other adversely affected sectors (Annex B) will be entitled to €320 per month. This will increase to €480, for those self-employed who employ staff, and the employees will be entitled to 2 days salary calculated on €800 a month. Part-time self-employed based in Gozo operating in other adversely affected sectors (Annex B) will be entitled to €200 per month. This will increase to €300, for those part time self-employed who employ staff, and the employees will be entitled to 2 days salary calculated on €800 a month.
It is understood that in various instances, when the operations are completely closed down due to Covid measures taken by Government. employees might be asked not to attend to work. The employer is obliged to pass on, as a minimum, the €800 wage subsidy less the employee’s national insurance contribution and government taxes to the employee.
In certain instance if there is agreement with the Department Of Industrial And Employment Relations, employees may be required to work a four or three day week, in these instance the Covid Wage Supplement would still be allocated in accordance to the parameters established above.
For a full explanation of the tax treatment of the Covid Wage Supplement, please refer to the guidance issued by the Commissioner for Revenue in this link: https://cfr.gov.mt/en/News/Pages/2020/COVID-Wage-supplement-Payroll-Implications-NOTICE-TO-EMPLOYERS.aspx
The COVID Wage Supplement may only cover a person’s main source of income. Those in receipt of a Government, retirement or services pension, and students receiving a stipend are not eligible.
FAQs that may be of help to self employed/companies during this period may be found here: https://dier.gov.mt/en/Documents/Employment%20conditions%20and%20COVID19_FAQs_final.pdf
Annexes below may be updated periodically. These were last updated on 29th March 2020: