A number of measures have been announced to counteract the negative economic impact of the COVID-19 pandemic.
These measures have a value of around €1.8bn, which represents around 12.9% of Malta’s Gross Domestic Product (GDP) in 2019. A summary of the announced measures is set out below.
Business and employment measures:
- Liquidity injection and bank guarantees of up to €1.6bn consisting of:
- Tax deferrals up to Euro 700 million deferral of income tax, VAT and NI payments for March and April for both employers and self-employed;
- €750m of soft loans;
- €150m of bank guarantees.
- Requesting a three-month moratorium for both personal and business loans.
- Provision of guarantees by the Government of up to €900m thereby making credit of €4.5bn available.
- Employees of enterprises that suffered from a complete suspension of operations will be entitled to a grant of 2 days’ salary per week (based on a monthly salary of €800).
- Self-employed individuals operating in the said industries will also receive a grant equivalent to two days’ salary per week. Those self-employed individuals having their own employees shall receive a grant equivalent to three days’ salary per week (Both cases are based on an assumed monthly salary of €800).
- Where the operations of a business have reduced by at least 25%, employees will benefit from a grant equivalent to 1 day’s salary per week (based on a monthly salary of €800).
- Individuals whose full-time job has been terminated as from 9th March 2020 shall benefit from a temporary increase in their unemployment benefit of up to €800 per month.
- A grant of €350 per employee to businesses that have had employees on mandatory quarantine.
Third Country Nationals
- Malta shall no longer accept applications for new third-country nationals except for highly skilled workers.
- Assistance to all third country nationals to find alternative employment in case of Job termination.
- All enterprises who terminate an active employment contract shall be denied the possibility of applying for third-country national workers.
The details of these measures are still being communicated and further clarifications will need to be sought.
Contact us now for more insight on the above measures.