The official notice with the details of the COVID-19 Wage Supplement has been published in the Malta Government Gazette of 13 April 2020. The notice is split in eleven sections giving details on (1) the definitions of key terms like ‘employee’, ‘employer’ and ‘self-employed person’, (2) the applicability of the scheme, (3) the scheme itself i.e. the benefits, (4) National Insurance Contribution and Income Tax, (5) payment of funds, (6) manner of application and supporting documents, (7) rights to publish information, (8) validity of application, (9) appointment of Malta Enterprise to manage the scheme, (10) offences related to the scheme, and (11) amendments to the scheme.

Worth noting are the following provisions, some of which are clarifications;

1. Any COVID Wage Supplement is payable for the benefit of an employee and hence an applicant cannot claim any benefit on or from the said supplement. Any further support in relation to the same employment under any other scheme related to the COVID pandemic shall be adjusted accordingly so that assistance granted by Government shall never exceed an amount which is equal to the amount of COVID Wage Supplement being granted by Government.
2. The provision of a COVID Wage Supplement does not exempt the applicant from his obligations towards his employees, as established by applicable laws and regulations.
3. The applicant is to ensure that the provision of COVID Wage Supplement must not, at any time, result in a global salary package in excess of that employee’s average basic salary for January and February, 2020. Should this occur, the applicant will be liable to effect a full or partial refund of the COVID Wage Supplement which shall be equal to the amount in excess of the employee’s average salary for January and February 2020.
4. Self-employed persons shall also be liable to pay National Insurance Contributions on the COVID Wage Supplement which they shall receive but at a reduced rate of ten per cent (10%).
5. In order to simplify administrative processes, the funds will be forwarded to applicants who will be obliged to guarantee that the COVID Wage Supplement, is duly forwarded to the employee immediately upon receipt of such funds from Malta Enterprise and, in any case, by not later than the next salary payment due to the employee in question.
6. Government shall reserve the right to make public any funds forwarded to applicants under this Scheme and details of the respective applicants. This measure may be taken also in order for employees to know of their eligibility for the COVID Wage Supplement under the scheme and to have cognizance as to whether their employer has received any funds from Government under the scheme which he was obliged to forward to them.
7. It is a criminal offence to submit applications containing false information; and/or to hold on to funds forwarded under the scheme with the obligation that such funds are forwarded to one’s employees in terms of the scheme.

You may wish to read our earlier posts on the announcement of the COVID-19 wage supplement and the issue of a Revenue Notice by Employers on the supplement.

Should you have any queries or wish to discuss further, please send an email to covid@kpmg.com.mt.

The information contained herein is of a general nature and is not intended to address the circumstances of any particular individual or entity. Although we endeavour to provide accurate and timely information, there can be no guarantee that such information is accurate as of the date it is received or that it will continue to be accurate in the future. No one should act on such information without appropriate professional advice after a thorough examination of the particular situation.