COVID Wage Supplement

If your business has shut down as a direct impact of the Legal Notice, and you have not applied for the Wage Supplement as yet, you can do so by 23rd April 2021.

Late applications will not be accepted.

Application form:

Businesses who were already in receipt of a wage supplement need NOT reapply.


A Notice issued by Malta Enterprise regarding the COVID Wage supplement developments in relation to announcement of new restrictions states that:

  • Employees and self-employed working in businesses which have been ordered to shut down due to the new health restrictions, and which were not benefitting from the COVID Wage Supplement, can now apply for the maximum assistance up until when the business they work at are kept closed by the health authorities.

In view of this businesses who have been asked to close down, and who up till now were not benefitting from such assistance, will now be able to apply for the COVID Wage supplement covering only the period in which their shops are closed.

The link for the application is available at

The first payment will cover 8th March - 26th March (3 weeks).  For further information prospective applicants are encouraged to reach Malta Enterprise by calling 144 or by sending an email on [email protected]

Meanwhile companies who are benefitting from the COVID Wage Supplement and who haven’t been requested to close their businesses shall continue to benefit from the scheme based on loss of revenue in 2020 as compared to 2019.


As per Press Release PR210493, the Covid Wage Supplement will be provided till end of year 2021


Basic Guidelines and FAQs 2021 Booklet 

A new system of the Wage Supplement Scheme, as announced in the Budget 2021.

Instead of providing assistance that corresponds to the respective NACE code, businesses will be given assistance according to the losses incurred during the pandemic. However, the wage supplement scheme will remain open for those who were eligible to date – wage supplements will be continued to be paid on a monthly basis. Businesses are not required to re-apply, as Malta Enterprise will be using the same application originally submitted by the applicants.

As of January, the amounts of the wage supplement will be calculated according to drop in sales.


Wage supplement

VAT Declarations

This change is being worked out on VAT declarations, through an agreement reached with the VAT department. It will cater for 3 different types of VAT procedures:

  • Monthly VAT returns
  • Quarterly VAT returns
  • Yearly VAT returns 



For VAT exemption and new VAT numbers, the level of support will be paid according to the current scheme (Annexes A, B & C) – which were determined according to the NACE code registration.

For businesses which has to close down following the issuance of Legal Notices by the Superintendent of Public Health, will continue to receive the wage supplement at the maximum rate.

Replacement of employees

The Scheme is now including replacement of employees as long as the original number of employees as at end of May is not exceeded.  Businesses who have engaged NEW employees to replace those who voluntary resigned will become eligible for a wage supplement subject to the following:

  • The number of employees receiving wage supplement should not increase beyond the number of employees on a wage supplement as of 29th May 2020;
  • The wage supplement for those employees replaced will be paid from October 2020;
  • Applicants have to provide a written declaration, signed by the legal representative of the company, that termination was on a voluntary basis; and
  • Legal representative of applicant declares that employment conditions for the employee being replaces are not less favourable than those of employees being replaced.

 More info can be found on:


The MEA has expressed itself in favour of these changes as the supplement will apply to all businesses, and, although the ultimate beneficiaries of the funds will be employees, the scheme will help in employee retention to help a faster recovery once the pandemic subsides.   

If you require further information, please do not hesitate to contact us.