Covid-19: Financial & Social measures

Measures targeting businesses

• A total of €1.6 billion in liquidity for companies of which €700 million in tax deferrals and €900 million in government bank guarantees. The bank guarantees will be made available to entities in order to open new lines of credits and loans that would give companies additional liquidity (up to €4.5 billion in total).
• Business operating in a sector (accommodation, restaurants, entertainment, language schools) whose operations were suspended due to government decisions will receive 2 days a week payment for each employee based on a salary of €800 per month.
• Businesses registering a 25% reduction in sales will benefit from the payment of 1 day per week per employee based on a salary of €800 per month.
• Payment of €350 for every employee on quarantine leave.

 Self-employed persons

• Persons operating in a sector (accommodation, restaurants, entertainment, language schools) whose operations were suspended due to government decisions will receive a payment of 2 days a week based on a salary of €800 per month. Where the self-employed person employs other persons, this will be increased to 3 days a week.
• Persons registering a 25% reduction in sales will benefit from the payment of 1 day per week per employee based on a salary of €800 per month. Where the self-employed person employs other persons, this will be increased to 2 days a week.

Social measures

• 2 months paid leave at the rate of €800 per month where both parents work and in both cases teleworking does not apply.
• Individuals with disabilities who are unable to work from home or who had to stop working because of health concerns will be eligible for a benefit capped at €800 per month.
• A Maltese or EU citizen who becomes redundant will get €800 per month as an unemployment benefit, whilst a third-country national who becomes unemployed will get support to find alternative work.
• The rent subsidy scheme will be available to those who lose their job but who did not qualify for rent subsidy when the scheme was initially launched.

Measures previously announced

The government earlier announced other measures to assist business affected by the COVID-19 pandemic:

• Tax deferrals – businesses (including self-employed persons) experiencing a significant downturn in turnover and facing cash flow difficulties can apply to defer tax payment falling due in March and April in respect of VAT, FSS, and social security contributions. Online applications are to be submitted to the Malta Enterprise Corporation by not later than 15 April 2020.

• Grants related to the facilitation of teleworking – business (including self-employed persons) who incur expenses on or after 1 March 2020 in relation to the facilitation of teleworking for employees may qualify for a cash grant calculated at 45% of the eligible costs incurred during March 2020. The grant is capped at €500 per teleworking agreement and up to €4,000 per undertaking. Online applications are to be submitted to the Malta Enterprise Corporation by not later than 30 March 2020.

Should you need further information, please do not hesitate to contact us.

Publication date: 20.03.2020