Times of Malta was informed that wage supplements for businesses hit by the pandemic will be reduced between August and the end of the year. Sources informed the newsroom that the government has plans to cut the different supplements down by as much as a third across two phases. €800 will be given to those hardest hit by the pandemic, the highest supplement wage. 

Presented to the Malta Council for Economic and Social Development during a confidential meeting the government on Tuesday, the plan was revealed during a presentation given to social partners. The wage supplement was first introduced in March 2020 by the government in order to stop massive lay-offs from businesses that were massively impacted by the pandemic. 

The scheme is estimated to have cost around €44 million monthly as it was deployed when non-essential businesses were shut down. Tens of thousands of jobs were allegedly saved for most sectors across the economy, according to the government. 

As mentioned, companies hardest hit will continue to receive €800 supplement wage. These are companies which experienced a 55% or higher drop in sales. Starting August, companies claiming a 10% to 20% drop will receive a €100 supplement, down from €160. The amount will be cut in half to €50 in October until 2021’s end.

Those who experienced losses between 25% and 34% will also have the supplement reduced to €200 in August and €100 in October from the current €320. Those with a higher 35% to 44% drop and who currently receive a €480 aid per employee will see it reduced to €290 in August and to €145 in October. 

Finally, businesses with a 45% to 54% drop will have their current €640 reduced to €510 and then €250. 

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Photo Source: fotografierende