The Government of Malta releases An Economic Substance Package worth €1.81 BillionMEDIA ROOM
During a press conference held on the 18th of March 2020 the Prime Minister of Malta, Dr. Robert Abela, announced a €1.81 billion economic package that Government has come up with so that Malta’s economy overcomes the challenge of the negative effects of Coronavirus and is strengthened once more, for the good of the families and businesses of our country.
Amongst others, liquidity to businesses worth €1.6 billion will be provided, €150 million in bank guarantees through the National Fund for Social Development, and for €350 to be provided to businesses that pay quarantine leave to their employees. Another measure is the additional two months’ leave paid at the rate of €800 every month for 12, 000 families where both parents are in employment where teleworking is not possible and thus one of the parents has to take care of the children.
The Minister of Finance and Financial Services, Prof. Edward Scicluna outlined the following measures during the said press conference:
- Economic package to give businesses cash of € 1.6 billion split: € 700 million tax accounts payable later and € 900 million in terms of bank guarantees;
- It is envisaged that the postponement of the payment of income-tax, VAT and stamp duty contributions of March and April for employers and the self-employed will amount to around € 400- € 700 million;
- Under the National Social Development Fund will be awarded up to € 150 million terms of bank guarantees;
- The Minister of Economy announced Silvio Schembri direct injection of € 210 million (1.5% of GDP) to help the economy and protect jobs in this way:
- An increase of € 35 million for health authorities to combat Covid 19 – for this measure there will be no limit;
- € 350 will be awarded to employers for each employee on leave Quarantine;
- Additional leave of two months paid at the rate of € 800 a month to cover 12,000 households to leave a family where both parents are working and no-teleworking this measure will cost up to € 16 million years;
- Between 20,000 and 44,000 workers working in enterprises that suffered most from the suspension of operations due to decisions taken by the Government to protect the health of people like those in the areas of accommodation, restaurants, those of entertainment and schools to teach languages to be paid two days a week based on the sum of € 800 a month – this measure will cost up to € 3 million per week;
- Similarly, those self-employed, around 5,700, working in the estates mentioned above will be paid two days a week based on € 800 a month while employers that employ more will be paid 3 days;
- Those businesses that suffered at least reducing their operations by 25% will be given a payday week based on € 800 a month – up to 47,500 workers could be affected – this measure will cost up to € 1.6milIon week;
- Those self-employed, around 9,600, and suffered the least decline in their operations by 25% or more will be given a pay day week based on € 800 a month, those will employ people replace them will be two days – this measure will cost about € 450,000 per week;
- Those workers who may or may lose their jobs with effect from 9 March 2020 will enjoy a new temporary benefit of € 800 per month;
- People with disabilities who cannot work from home but necessarily have to stay at home due to complications that may arise in connection with Covid 19 and their disability will be given € 800 per month;
- Those who lose their job and have to pay any rent that does not qualify for rent subsidy will qualify for the subsidy;
- The Government will also increase the rent subsidy where there was a dependent outgoing lost his job and had already benefit from the subsidy;
- Those enterprises who terminated the employment of an employee will not be able to offer an employment contract to Third-Country Nationals in place;
- Malta will not accept further applications of Third-Country Nationals except those who are highly-skilled;
- There will be assistance in finding alternative employment for those Third Country Nationals who lose their jobs;
- Jobsplus launched service to assist unemployed residents ran, Third Country Nationals redundant job is to help that while work permits will help employers to find new people.
Should you wish to seek further advice on how to apply for the above schemes, you may contact CSB Group at [email protected]