Issue link: https://maltatoday.uberflip.com/i/1225368
3 maltatoday | WEDNESDAY • 25 MARCH 2020 NEWS Coronavirus CONTINUED FROM PAGE 1 The improved package of direct aid will see government finance a full five-day work week at a minimum of €800 per month for all workers and self-employed in critical sectors that were deci- mated by the coronavirus meas- ures. These critical sectors include hotels, restaurants, certain retail outlets, travel agencies, trans- port operators, entertainment, barbers, beauticians and hair- dressers. All activities hit by forced closure as a result of pub- lic health measures will benefit from this scheme. This measure will cost govern- ment €44 million per month. Employers guarantee minimum top-up However, it was agreed at the MCESD that employers will guarantee a minimum top-up of €400 per month per employee to ensure that employees receive a minimum of €1,200 per month. Employers that cannot afford the top-up will have to obtain permission from the Director of Labour. Nothing prevents employ- ers from giving more than the agreed minimum top-up. Some companies will receive one-day wage A second tranche of aid will be provided for companies and sectors hit by reduced consump- tion, which will see the govern- ment finance one day per week in wages, based on a monthly pay of €800. The cover may in- crease to two days over time. Gozitan companies and the self-employed will have two days covered immediately. Those self-employed who employ peo- ple with them, will be entitled to three days of cover. The companies in this category include those in manufacturing, some retail outlets and the infor- mation sector. This measure will cost govern- ment €17 million per month. The full list of companies/ self-employed and the schemes applicable to them will be re- leased next week and will be communicated through Malta Enterprise. Forced leave The aid package unveiled tonight retains the €800-per- month benefit for a parent that has to stay at home because schools have closed. This bene- fit applies to people where both parents work in the private sec- tor. This alone will cost govern- ment €9.5 million per month. The package also includes an €800 per month bene- fit for disabled people who work in the private sector but choose to stay at home. This will cost €1 million per month. Anybody who had his job ter- minated since 9 March because of the coronavirus crisis will re- ceive an unemployment benefit of €800 per month. Public sector employees Government officials who gave the media a briefing before the Prime Minister's address, said government had no intention of cutting wages in the public sec- tor and its agencies. However, cost-saving meas- ures such as reducing overtime were being implemented. Tax deferrals All income tax, national insur- ance and VAT contributions due by companies and self-employed individuals will be deferred – a measure that will cost public coffers €700 million in forfeited revenue. Government will also put up €900 million in guarantees to enable businesses to access bank finance. Debt up by 8% The measures announced to- night will be sustained for three months but can be reviewed de- pending on how the situation develops. The package means that gov- ernment will have to loan more than €1 billion to cover the full cost. This will cause public debt to increase by about 8%. Government anticipates that the debt-to-GDP ratio will still be less than 50%, giving it enough fire power to increase the aid package at a later stage if the situation does not improve. PN: New incentives treating many workers as 'second-class' Reacting on social media im- mediately after the new financial package was revealed, Opposi- tion spokesman Claudio Grech said the new incentives woould only be seriously helping 60,000 out of 164,000 employees in the private sector. "He's treating the other work- ers as second-class," Grech wrote. "Abela is making a very big mistake in ignoring those sectors 1try's economic growth." MHRA welcomes incentives The Malta Hotels and Res- taurants Association (MHRA) welcomed the measures, saying it believed they would help the tourism and hospitality sector weather the storm. "This follows continuous and persistent representation from MHRA that the grant of €320 towards the cost of wages was simply not enough and had to be reviewed significantly upwards," MHRA President Tony Zahra said. "We are satisfied that our calls to Government for review have been heard by Government and that was ready to go back to the drawing board with us to ensure the welfare of the economy." 'Incentives only seriously helping 60,000 of 164,000 employees in private sector' - PN spokesman Claudio Grech Abela is making a very big mistake in ignoring those sectors that were the pillars of the country's economic growth