The Government has yesterday introduced a new financial aid package as well as other measures intended to alleviate the burden which businesses and employees are currently facing because of COVID-19. Earlier on this week, the Government had already announced other measures. The new measures have a value of Eur1.8 billion, which is approximately 12.9% of the country’s Gross Domestic Product. This is a rate, which is higher than the EU average rate. A summary of the new measures is set out below.
- Deferral of tax payments which are estimated to be in the region of Eur400 and Eur700 million
- Eur150 million of bank guarantees
- Eur750 million of soft loans
- Three month moratorium period to be applied on both personal and business loans
- Provision of guarantees of up to Eur900 million
- The Government to make Eur210 million available to cover any expenditure related to COVID-19
- An additional funding of Eur35 million in the health budget to fund additional expenditure in the acquisition of equipment and supplies to be used in the fight against this virus
- A grant of Eur350 per employee to be paid to employers that have employees subject to mandatory quarantine
- A grant of 2 days’ salary per week (based on a monthly salary of Eur800) to employees whose employers suffered from a complete suspension of operations
- Self-employed individuals who had to suspend their operations will receive a grant equivalent to two days’ salary per week (based on a monthly salary of Eur800)
- Self-employed individuals with employees will receive a grant equivalent to three days’ salary per week (based on a monthly salary of Eur800)
- Where a business can prove that its operations have been reduced by at least 25%, their employees will benefit from a grant which is equivalent to one days’ salary per week (based on a monthly salary of Eur800)
- Employees who will lose their job after the 9th March 2020 will receive a temporary increase in their unemployment benefits of up to Eur800 per month
- Employers terminating employment contracts, will have no possibility of employing third country nationals
- No further applications for employment will be accepted from third country nationals, unless the employee is highly skilled
- Jobs Plus will assist all third country nationals who would have been made redundant to find alternative employment
- Jobs Plus will also assist other people whose job has been terminated as well as employers to seek new employees
- A grant of Eur800 per month (for two months) will be paid to families whose children have to stay at home due to the closure of schools. This applies where both parents work in the private sector, are unable to work remotely and who require additional leave to take care of their children
- Persons with disability who are unable to work remotely will be entitled to a benefit of Eur800 per month for a specified period
- Employees having their employment terminated and who reside in subsidised accommodation will benefit from higher rent subsidies
