New financial aid measures were introduced by the Government yesterday 24th March which shall be applicable retrospectively from the 9th March 2020. These incentives will be held in place for 3 months.

The new incentives are two-fold:

  1. Those applicable to industries which have been impacted severely by COVID-19 and thus require their business to close and;
  2. Those applicable to industries which suffered a significant turndown in business.

The benefits will go directly to the employer based on the NACE Code under which that business operates.

Sectors with severe impact by COVID-19:

  •  A benefit of €800 monthly  per employee will be paid by the Government, applicable to both employers and self-employed. This is equivalent to a minimum salary, with an increase of an additional €23 monthly to each individual employee or self-employed. The sectors mainly include retail operations, transport and accommodation businesses, food & beverage, employment agencies, entertainment and personal services, motor vehicle rentals etc.
  • The above measure will also apply retrospectively to those business who have made redundant any employees from the 9th March to the extent that the employer re-employs such individuals.
  • In light of those employees whose salary is above minimum wage but up to €1200, the employer will need to cover the €400 additional monthly salary. In those cases where the employer is not able to top up such amount, discussions will be held between the employers and the relative union on a case-by-case basis to agree on how this will be implemented.

Sectors which suffer a business turndown due to COVID-19:

 

  •  Government will increase the 1 day a week paid salary up to 2 days per week on the conditions that will shortly be announced. Those Gozitan operations that work in these industries will immediately be eligible for the 2-day salary payment without any pre-conditions.
  • Those who are self-employed and have employees, the Government will pay for a 3 day week.

 Other matters under consideration:

 

  •  Decrease on residential and commercial interest rates by commercial banks; and
  • Expected flexibility from employees and employers on the new financial measures in light of any possible additional measures that might need to be undertaken.

 

For more information, feel free to get in touch with our CBDO Deborah Vella or CFO Antonella Lia on LinkedIn or email us on info@ellulschranz.com for further information.

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