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GM Corporate and Fiduciary Services Ltd. 147/1, St. Lucia Street, Valletta VLT 1185, Malta. |
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+(356) 2123 5341 |
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info@gmint.com |
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To date the Maltese government has announced a total of three financial aid packages in response to COVID-19’s effect on the local economy. The following timeline maps out the said three financial aid packages.
24 March 2020
On 24 March 2020 the Maltese government announced its third package of financial measures in response to COVID-19’s effect on the local economy. This is subsequent to the first two packages, announced on 9 March 2020 and 18 March 2020 respectively that included tax deferments, cash injections, guarantees on the possibility to opt for soft loans, and unemployment benefits.
The financial measures announced on 24 March 2020 at a glance:
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Sector of the Economy |
Category of Employees |
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Financial Aid |
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Most impacted sectors by the COVID-19 (these include the wholesale sector, the retail sector, accommodation, and travel agencies) |
Full-time employees
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An entitlement of an €800.00 per month salary
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Part-time employees |
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A pro-rata entitlement to a salary computed on a €500.00 per month salary |
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Less impacted sectors by the COVID-19 (these include the manufacturing sector, part of the wholesale and retail sectors, warehousing and information) |
Full-time employees |
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An entitlement to the equivalent of one day’s salary:
With respect to Gozo-based businesses, the entitlement is increased to the equivalent of two days’ salary, once again computed on the basis of €800/ month salary. |
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Part-time employees |
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A pro-rata entitlement to the equivalent of one day’s salary:
With respect to the relevant sectors in Gozo, the entitlement is increased to the pro-rata equivalent of two days’ salary, once again computed on the basis of €500/month salary. |
All the above-mentioned measures should have retrospective application from 9 March 2020.
18 March 2020
The 2nd package of Financial aid measures announced[DX1] by the Maltese government on 18 March 2020 and addresses an array of employment and social measures, including the following:
Employment Measures:
- Employees of enterprises suffering from a complete suspension of operations (such as the tourism sector, and language schools amongst others) should be entitled to 2 days’ salary per week based on €800 per month.
- Self-employed individuals and self-employed individuals who are also employers (and whose work has suffered from a complete suspension of operations) should be respectively entitled to 2 days’ and 3 days’ salary per week based on €800 per month.
- Employees of enterprises suffering from a reduction of at least 25% in operations should be entitled to 1 day’ s salary per week based on €800 per month (this measure should also apply to self-employed individuals).
- Self-employed individuals and self-employed individuals who are also employers (and whose work has suffered from a reduction of at least 25% in operations) should be entitled to a 1 day and 2 days’ salary per week based on €800 per month.
- Individuals whose full-time job has been terminated as from 9 March 2020 should be entitled to a temporary increase in their unemployment benefit of up to €800 per month.
- A cap of €350 should be provided to employers for each employee on quarantine leave.
Employment Measures related to Third Country Nationals:
- All enterprises which terminate an employment contract should be denied the possibility of applying for third-country national workers.
- Applications for new third-country nationals (save for highly skilled workers) should no longer be acceptable.
- Third country nationals should be assisted in finding alternative employment in case of job termination.
- New service offering by Jobsplus to provide assistance to:
- Individuals who are resident in Malta and whose job has been terminated;
- Third-country nationals whose employment has been terminated. Assistance will also be provided in connection with work permit queries;
- Employers to seek new recruits.
