Following the Prime Minister’s announcement of the second financial package, on Tuesday, Malta Enterprise has launched a dedicated website detailing who can benefit from the measures, and the necessary application forms.
It was a common complaint that many did not know who was applicable for the measures, and where to apply, simply being instructed to call Malta Enterprise. As a result, Malta Enterprise was inundated with calls. This newsroom has been informed that Malta Enterprise was overwhelmed with the number of calls, and people are encouraged to make contact via email.
Also, here is specific guidance on how who is eligible and how one can apply. The initiatives which include COVID Wage Supplement, Social Measures, Quarantine Leave, Facilitating Teleworking Activities, Employment of Third Country Nationals, Deferral of Payment of Taxes, and Further Liquidity Measures.
COVID Wage Supplement
The government will be supplementing those wages of employees in sectors that suffered drastically because of the pandemic and separately those in sectors that were adversely affected.
The application forms for these measures are not yet available.
Full-time employees of enterprises operating in sectors that suffered drastically due to the pandemic, or that 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 for up to €500 per month.
The full, detailed list of who can benefit from this measure is included here.
Full-time employees of enterprises in other adversely affected sectors will be entitled to one days’ salary per month. Part-time employees will be eligible for 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.
The full, detailed list of who can benefit from this measure is included here.
In case of self-employed, in other adversely affected sectors, who have employees, will be entitled to two-days’ salary per week equivalent to €320 per month.
Self-employed based in Gozo operating in other adversely affected sectors will be entitled to two days’ salary per week equivalent to €320 per month. This will increase to three days salary, equivalent to €480, for those self-employed who employ staff, and the employees will be entitled to two days’ salary per week.
Social Measures – Parents, people with disability, and the unemployed
Parents who both work in the private sector, requiring one of the parents to stay at home to take care of school-aged children (under 16), will get a salary of €800 per month, provided that they cannot carry out their functions through teleworking arrangements.
This measure also applies to single-parent families who have school-aged children.
A form must be filled online and requires general details of the parent who cannot go to work because they need to take care of children, general details about spouse or partner, employment general details and bank details.
Employees who had their full-time employment terminated as of 9th March 2020, as a result of the pandemic, will be eligible for an unemployment benefit of up to €800 monthly. These employees must have been employed by the private sector. One must also be registering for work under the Part I register with Jobsplus. The application is automatic on registering with JobsPlus
The government will also increase rent subsidies for individuals who have their job terminated.
Persons with disability employed in the private sector, who after 8th March 2020 due to the impact of COVID-19 cannot go to work on medical advice and are not able to work from home, may apply for to benefit from of €800 per month. A general application is also available online for this measure.
Deferral of Payment of Taxes – when will you pay them back?
A two-month deferral to enterprises, including the self-employed, to pay Provisional Tax, VAT and National Insurance Contribution on salaries, applies. Employee taxes, maternity fund payments and social security contributions are also included.
No interest or penalties to be charged in respect of eligible taxes that would have been deferred in terms of this scheme.
This will apply for taxes owed until the end of April.
All tax forms should be submitted according to normal deadlines. Enterprises will still collect National Insurance on their employees’ wages but will keep these dues for the duration of the deferral.
After these two months, the government will be studying possible extensions of this measure depending on the prevailing economic conditions.
Eligible taxes (excluding VAT) are then to be settled in four equal monthly instalments in the four-month period between May and August 2020. VAT dues to be settled in two equal instalments with the two quarterly returns immediately following the quarter whose dues would have been deferred.
Companies and self-employed persons who have failed to comply with their tax obligations (submission of documents/returns and payments) falling due by 31st December 2019 are excluded from this measure.
Application forms are open for this measure and applications are to be made not later than 15th April 2020. An E-ID is required to access the application form.
Quarantine Leave
A grant of €350, per employee, to businesses (including self-employed) that had full-time employees on mandatory quarantine leave. The grant is also available to full time, self-employed persons, who had to undergo mandatory quarantine.
An application form is available online if one applies for this measure.
Facilitating Teleworking Activities
This measure applies all undertakings irrespective of size and sector. The support will be given to employers who incur eligible telework expenses pursuant to a telework agreement. The aid will only be considered if the role of the employee can be addressed through teleworking and when a formal teleworking agreement is in place and connects to the workplace via a VPN (or similar) solution.
In order to be eligible, the employee should not have had an active teleworking agreement before 15th February 2020 and must be engaged in a role which can be performed via telework.
Support shall be limited up to €500 per teleworking agreement and €4,000 per undertaking. The grant shall be awarded against 45 percent of the eligible cost. This call is eligible for costs incurred between 15th of February and 8th May 2020. Support shall be awarded in the form of a cash grant.
The application and claim form, which can be downloaded, together with additional documentation should be submitted by email on [email protected], however, terms and conditions apply.
Mobile phones, communication costs including the increase in bandwidth are not eligible for the expense. If the employee works some days from home, and others from the office, the undertaking is still eligible.
Employment of Third Country Nationals
Jobsplus will assist Third Country Nationals living in Malta to find an alternative job.No new third-country national applications will be received from now on except for applications related to highly qualified persons.
Companies who terminate an active employment contract shall be denied the possibility of recruiting other third-country nationals.
Further Liquidity Measures
€900 million in bank guarantees for companies requesting operational loans with low-interest rates and longer repayment periods. These schemes will be financed by grants from the National Development and Social Fund and EU funds.
Three-month moratorium from banks for business or personal loans. This will alleviate the burden of bank loans for ALL persons and businesses in this challenging period.
For this measure, the individual’s local bank should be contacted.