While the companies that were affected the most by the Covid-pandemic will continue to receive the full Covid-19 wage supplement, businesses in other categories will lose up to two-thirds of the amount they receive from the government.
It was announced on Wednesday that the government will start tapering the Covid-19 wage supplement starting from August.
The plan was announced during a meeting of the Malta Council for Economic and Social Development (MCESD) earlier this week.
The Covid wage supplement, first introduced last year, is managed by Malta Enterprise, which falls under Miriam Dalli’s Ministry for Energy, Enterprise and Sustainable Development.
While no details were given for the categories that will see a decrease in their wage supplement, Times of Malta revealed the amounts that companies in the four other categories will see cut from the assistance they currently receive.
Companies that experienced a decrease of between 10% and 20% in business currently receive €160 per employee. The amount will go down to €100 in August and to €50 in October.
Companies that experienced a loss of between 25% and 34% will see their wage supplement reduced from €320 down to €200 and then to €100.
Businesses that lost between 35% and 44% will see their supplement reduced from €480 to €290 and then to €145.
Those who experienced a loss of 45% to 54% will have their supplement cut down from €640 to €510 and then to €250.
Companies that have experienced a drop in business of 55% or more will continue receiving the full amount – €800 per employee.
The wage supplement was first introduced in March 2020. The government says it has helped save tens of thousands of jobs, particularly in business sectors affected by pandemic shutdowns.
So far, the government has invested more than €500 million, supporting over 17,000 private business.