The Covid Wage Supplement provides employee with a basic wage cover to address the disruption caused by the COVID-19 pandemic.

  • It is the government’s contribution to employers to support the wages of their employees through the COVID Pandemic.
  • It is replacing the normal wages of the employee.
  • It is taxable in the hands of the employee.
  • The income will be added to any income received by the employee during the pay period.
  • Tax and social security contributions (including Maternity) will be calculated in the standard method.
  • The payslip will show the gross paid (i.e. €800 or the amount eligible).
  • Payroll requires no changes.
  • The employer must record receiving the wage supplement (e.g. €800) and paying this gross to employee.
  • The wage supplement paid to employers will not be treated as income or a grant to the employer for Income Tax purposes.
  • It is NOT taxable nor tax deductible.
  • Government will give €800 (or less according to eligibility) to the employer for each employee
  • Government will retain 10% SSC (€80 or less) as prepaid employees share of SSC.
  • The employer will then calculate what is due to the CFR and deduct the amount of SSC prepaid to the CFR.
  • On the FS5 Form, the total due to CFR less the SSC when the wage supplement is paid, will be shown in box D5.
  • Malta Enterprise will provide the full details of the applications to the CFR.
  • Employers will report the wages supplement paid to employees in the normal FS3 forms.
  • FS7 will be modified to show the amounts paid to employers and the SSC withheld from the wage supplement.
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