The Malta Independent 17 June 2024, Monday
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Malta Council for Economic and Social Development welcomes wage supplement tapering system

Tuesday, 27 July 2021, 14:47 Last update: about 4 years ago

The news that businesses will continue to be assisted while the tapering of the wage supplement is introduced was welcomed by the Malta Council for Economic and Social Development (MCESD).

Minister for Energy, Enterprise and Sustainable Development Miriam Dalli and Minister within the Office of the Prime Minister Carmelo Abela attended the MCESD meeting during which Minister Miriam Dalli delivered a presentation to explain the system.

Since the outbreak of the Covid-19 pandemic, the Maltese Government - through Malta Enterprise - introduced the wage supplement to be of support to those businesses most affected by the pandemic. So far, the government has invested more than €500 million, supporting over 17,000 private business.

Since November several consultation meetings with stakeholders were held to discuss how the wage supplement should be provided in an effective manner, and when and how to taper it to help wean businesses off the wage supplement.

"It was this consultation that led Malta Enterprise to launch a €20 million incentive package that will help Maltese and Gozitan businesses prepare their business model for tomorrow. Such schemes include the Change to Grow, Restart and the Smart and Sustainable schemes to incentivise the move toward more sustainable operations and digitalization," a government statement read.

During the MCESD meeting, it was explained how the government is committed to continue being of support to businesses and worker, not only in times of emergency but also for the economic, social and environmental regeneration.

In her presentation, Minister Dalli explained how the worst-hit companies - with an impact of 55% of more - will continue to receive the wage supplement in full until the end of year. Therefore, they will experience no change.

All companies will receive the wage supplement until the end of the year, as the gradual reduction of the wage supplement will be introduced as of next month, according to the pandemic's impact on the company's income. The aim is to ensure that companies do not experience an abrupt stop in the wage supplement but that it is gradually reduced.

The tapering will be divided in two phases, with the first phase starting in August and the second phase in October onto the end of year. In parallel with the tapering system, businesses are benefitting from further support from Malta Enterprise through the rent and electricity bills and the One-Time Grant for those who experienced longer restrictions. Additionally, the government has issued a second round of vouchers worth €50 million. Some €16 million have already been cashed.

 

 


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