Hotels and restaurants have urged the government to continue paying wage subsidies that have been covering their payroll during the pandemic.  

In a statement, the Malta Hotels and Restaurants Association said the hospitality industry would suffer “irreparable damage” if wage subsidies that support thousands of workers' salaries are stopped.

The association wants the subsidies to be extended until at least March 2022.

The COVID-19 wage supplement was first introduced by the government in March 2020 in a bid to stop mass lay-offs from businesses that ground to a halt at the height of the pandemic.   

The scheme, rolled out when non-essential businesses were ordered shut, is estimated to have cost around €44 million every month, with the government saying it has saved tens of thousands of jobs across most sectors of the economy.  

In July a tapering-off plan was presented to the Malta Council for Economic and Social Development during a confidential meeting with the government. 

That plan foresees an end to wage subsidy payouts come the end of this year. The government's fiscal projections have also been calculated with that end-of-year target in mind. According to the European Commission, the GDP impact of pandemic-related aid will drop from 3.9% this year to 0.1% next year. 

MHRA: Hard months ahead

The MHRA said on Saturday that while it commends the government for its help to date, it is “evident that there are still some long hard months ahead”.

“Since lockdown measures and restrictions have been put in place, our members have complied with the rules. Public safety and the safety of workers have always been at the top of our agenda. But this has meant serious financial difficulties for many.” MHRA President Tony Zahra said. 

“MHRA appreciates that government would like us to do more, but we do need to stay within the confines of what’s affordable and sustainable under realistic business conditions.”