Covid-19 : Supporting Industry and The Economy
Since the first case of Covid-19 emerged on the island, the government and various institutions have launched support measures for individuals, organisations and self-employed businesses. These primarily related to tax deferrals and remote working grant support.
Subsequent to those measures, on 18th March 2020 the Government issued its largest financial aid package to date, relevant to the Covid-19 crisis situation. A range of measures were introduced, aimed at supporting economic players, businesses (including the self-employed) as well as employees. Below are the key components of the package launched by government:
Deferral of Tax Payments
Deferral of Tax Payments (including Income Tax, VAT, NI & PAYE) which would add up to between €400m and €700m.
Borrowing, Lending and Guarantees
- Bank Guarantees provided to support Lending: Valued at €150m
- Loans with more lenient terms (Soft Loans): Valued at €750m
- Options provided to request a potential three-month moratorium on personal and business loans
- Further Lending Guarantees given by Government of up to €900m
Supporting Employment – Organisations
- €350 Compensation provided to employers in relation to mandatory leave provided to employees;
- For businesses operating within the worst hit industries (namely: Accommodation, Hospitality, Food & Beverage, Language Schools, Recreation, Entertainment)
- 2 days salary grant per week on the basis of an €800 per month salary.
- For businesses operating within industries that have been impacted negatively by 25% or more
- 1-day salary grant per week on the basis of an €800 per month salary.
Specific to Self-Employed
- For the Worst Hit Industries (namely: Accommodation, Hospitality, Food & Beverage, Language Schools, Recreation, Entertainment)
- Self-Employed Individuals: operating in the worst hit industries: 2-day salary grant per week on the basis of an €800 per month salary
- Self Employed Individuals with Employees: should self-employed individuals also employ members of staff of their own, 3-day salary grant per week on the basis of an €800 per month salary.
- Employees that have been terminated from employment due to the Covid-19 situation effective from 9th March 2020, shall receive a temporary increase in Unemployment benefits of up to €800 per month.
- Third-Country Nationals that have lost employment shall receive assistance to find alternative employment.
Employment of Third-Country Nationals
- All enterprises that have terminated employment contract due to the Covid-19 situation shall not be permitted to recruit third-country nationals;
- The above may be exempted in the future in the case of highly skilled third-country nationals.
Jobsplus Employment Support
- Jobsplus shall be offering a new service aimed at:
- Supporting terminated employees to seek new employment; and
- Supporting employers seeking new recruits
Supporting Families with Children and Individuals Renting accommodation
- Government shall be providing €800 in benefits per month for a period of up to 2 months, to families with children at school when both parents work (within the private sector) who are not in a position to work remotely and require additional leave to take care of their children.
- Subsidies by Government shall be increased and given to individuals that live within rented accommodation and have lost their employment due to the Covid-19 situation.
Supporting Persons with Disabilities and the More Vulnerable
Persons who have had to stop employment due to particular disabilities or because they are particularly vulnerable to Covid-19 and are unable to work remotely will be entitled to a benefit of €800 monthly for a specific period.
Our Support and How we can help
Our dedicated team is in constant contact with the relevant authorities to find out more about the relevant support measures and how businesses can tap into them.
Should you wish to receive any further information please do not hesitate to contact us for more information via email on [email protected] or via our social media platforms.