The €350 Pandemic Unemployment Payment will become two-tiered from June 29, with people who were earning less than €200 per week before the outbreak of Covid-19 set to drop to €203 per week.
Social Protection Minister Regina Doherty today announced that the payment will continue until Phase 5 of the road map for reopening the economy on August 10, but it will be split from the beginning of Phase 3 in just over three weeks.
Ms Doherty says that the payment was the "most successful, effective and remarkable response" in the history of social protection in Ireland's history.
She said that the new system would be "tailored, more equitable and fairer" in its "recalibrated" state.
"Part-time workers will still be earning more from the state than they were in employment."
Finance Minister Paschal Donohoe also confirmed that the Temporary Wage Subsidy Scheme, which has assisted over 58,000 businesses pay €1.39 billion in salaries to 571,000 staff, would also continue until August.
"I have always been clear that this support cannot last forever, but I am satisfied that a decision has been made, for now, to continue the scheme until the end of August. As the public health restrictions are eased in the coming weeks, I will expect to see a continued decline in reliance on the scheme throughout the summer as the economy continues to re-open and people are able to return to work."