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COVID-19 Wage Supplement Scheme – Government Notice No. 389

Government Notice 389 published on 13 April 2020 sets out the implementing measures of the Wage Supplement Scheme announced last month.

The Notice specifies the details of the scheme and its application. With regard to National Insurance Contributions and Taxes, Paragraph 4 of the Notice provides that:

  • Wage supplements paid are net of NI due by the employee which shall be deducted by Malta Enterprise at source.
  • The employer shall be obliged to pay the NI contributions relative to employees’ salaries (this includes the part of the salaries which comprise the COVID Wage Supplement paid in terms of the Scheme).
  • Self-employed persons shall also be liable to pay NI Contributions on the COVID Wage Supplement which they shall receive. The rate of NI applicable to the wage supplement is 10%.
  • The COVID Wage Supplements shall be computed as taxable income in the same way as normal income from salaries received.