COVID Wage Supplement

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.