New Measures to support Businesses and workers
Four new schemes have been announced by the government for businesses that need support due to the Covid-19 pandemic:
1. Special Plan for Hotel Units and Tourist Accommodation
2. Special Plan for Economic Activities related/affected by the Tourism Industry and Tourism Activities
3. Special Plan for Enterprises of Certain Economic Activities
4. Special Plan for the Complete Suspension of the operations of a Company
An enterprise may qualify only under one of the above schemes. The benefit is paid to the enterprise.
The main conditions for eligibility are:
- significant reduction in turnover in enterprises
- Not to have made or make any employee redundant in the period from 1 March 2020 to 31 October 2020.
- To satisfy various obligations/conditions specified by the relevant scheme
- The percentage reduction in turnover must be confirmed by a certified public accountant
A brief analysis of each scheme follows:
- Special Plan for Hotel Units and Tourist Accommodation
|
Period
|
Percentage fall in turnover
|
Percentage of Employees covered in respect of those businesses that will re-open
|
Percentage of Employees covered in respect of businesses that will remain closed during the period
|
Percentage of Salary subsidised
|
|
13/6 – 30/6/20
|
Over 40%
|
90%
|
80%
|
60%
|
|
1/7 – 31/7/20
|
Over 40%
|
90%
|
80%
|
60%
|
|
1/8 – 31/8/20
|
Over 35%
|
50%
|
80% but may be revised downwards
|
60%
|
|
1/9 – 12/10/20
|
Over 35%
|
50%
|
80% but may be revised downwards
|
60%
|
Applicants that are re-opening are obliged to make attractive offers for local tourists and these should be made in cooperation with the Ministry of Tourism.
|
Period
|
Percentage of reduction of business turnover
|
Number of employees
|
Percentage of Employees covered in respect of those businesses that will re-open
|
Percentage of Employees covered in respect of businesses that will remain closed during the period
|
Percentage of Salary subsidised
|
|
13/6 – 30/6/20
|
Over 55%
|
Up to 3
|
100%
|
80%
|
60%
|
|
Over 3
|
60%
|
|
1/7 – 31/7/20
|
Over 55%
|
Up to 3
|
100%
|
80%
|
60%
|
|
Over 3
|
60%
|
|
1/8 – 31/8/20
|
Over 40%
|
Up to 3
|
100%
|
80%
|
60%
|
|
Over 3
|
45%
|
2. Special Plan for Economic Activities related to/affected by the Tourism Industry
The Plan is directed at any undertaking which:
(a) is linked to the tourism industry or
(b) is engaged in an economic activity directly affected by Tourism or
(c) is engaged in an economic activity linked to a business which is subject to compulsory complete suspension in accordance with the most recent Decrees of the Ministry of Health and/or the relevant Decisions of the Council of Ministers.
(d) the enterprises businesses must fall under one of the categories specified in Annex 1 of the Circular.
3. Special Plan for Enterprises of Certain Economic Activities
The Plan referred to is addressed to any undertaking which does not carry out economic activities specified in Annex I (reproduced below).
|
Period
|
Percentage of reduction of business turnover
|
Number of employees
|
Percentage of Employees covered
|
Percentage of Salary subsidised
|
|
13/6 – 30/6/20
|
Over 40%
|
Up to 3
|
100%
|
60%
|
|
Over 3
|
45%
|
|
1/7 – 31/7/20
|
Over 40%
|
Up to 3
|
100%
|
60%
|
|
Over 3
|
45%
|
|
1/8 – 31/8/20
|
Over 35%
|
Up to 3
|
100%
|
60%
|
|
Over 3
|
40%
|
Annex I
1.Supermarkets
2.Satellite and other telecommunications services
3.Electricity generation
4. Credit and insurance activities, including Licensed Banking Institutions
5. Doctors
6.Hospitals
7.Nursing homes
8.Production of pharmaceuticals
9.Wholesale of pharmaceutical products
10. Pharmacies
11. Medical and orthopaedic supplies
12. Bakeries and producers of pastry
13. Retailers (including the sale of cars and other vehicles)
14. Wholesale of electrical appliances, clothing and footwear, perfumes and cosmetics, carpets, furniture and luminaires and other household goods
15. Fuel stations
16. Vehicle maintenance and repair (including the sale of parts)
17. The Construction industry
18. Related to the construction industry including wholesale suppliers of construction materials etc.
19.Construction of projects, roads, bridges and other construction activities
20. Manufacture and supply of equipment for houses, offices, factories and the like
21. Veterinary services
22. Education (excluding supplementary tuition, Dance Schools and the like)
23. Hairdressers / Barbershops / Beauticians and Other Personal Services
24. Legal, Accounting and Consulting Services and other similar services
25. Sports teams and other similar activities
26. Business societies, Employer, Professional, Trade Unions, Religious Organizations and related activities
27. Agents
28. Funeral services
29. Laundry activities of all kinds
30. Primary sector
31. Flower shops excluding nurseries
32. Software programs and related activities (including wholesale trade)
33. Games of chance and betting
34. Services in relation to immovable property
35. Cleaning activities.
4. Special Plan for the Complete Suspension of the operations of a Company
The Plan is directed at any company subject to mandatory full suspension, in accordance with the most recent Decrees of the Minister of Health and the relevant Decisions of the Council of Ministers.
|
Period
|
Number of employees
|
Percentage of employees covered
|
Percentage of Salary subsidised
|
|
13/6 – 30/6/20
|
Up to 9
|
100%
|
60%
|
|
1/7 – 31/7/20
|
|
1/8 – 31/8/20
|
|
13/6 – 30/6/20
|
Over 9
|
90%
|
60%
|
|
1/7 – 31/7/20
|
|
1/8 – 31/8/20
|