As the new year draws ever nearer, hotels and restaurants have called on the government to continue paying the wage subsidies which covered their payroll during the COVID-19 pandemic.
The Malta Hotels and Restaurants Association (MHRA) issued a statement saying that the industry would suffer from ‘irreparable damage’ if wage subsidies which provide life-blood for thousands of workers are halted. The MHRA is urging the government to extend the subsidies until at least March of 2022.
A Brief History:
First introduced by the government in March 2020, the COVID-19 wage supplement was first introduced to stop bulk lay-offs from business which are forced to halt due to the height of the pandemic.
When non-essential businesses were ordered shut, the scheme was rolled out and is estimated to have cost around €44 million per month. The government claims that tens of thousands of jobs cross most economic sectors were saved due to this initiative.
Later in July, a tapering-off plan was presented to the Malta Council for Economic and Social Development during a meeting with the government. The plan foresees the end to wage subsidy payouts by the end of this year.
Back to this closing month of 2021, the MHRA commended the government for its aid to date. However, it highlighted how it is evident that there are still some long hard months ahead.
‘MHRA appreciates that the government would like us to do more, but we do need to stay within the confines of what’s affordable and sustainable under realistic business conditions.’
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Photo Source: Robert Abela FB, BusinessNow