Tanaiste Leo Varadkar confirmed the Pandemic Unemployment Payment will be "phased out" - but said no decision has been made on when it will end.
The Fine Gael leader also revealed that the payment will be extended beyond August 10.
It comes after the Irish Examiner reported that the PUP will finish by Christmas, with a gradual reduction from the current €350 a week.
Mr Varadkar denied that any firm decisions had been made, but admitted that the payment will need to be "phased out".
He told Morning Ireland on RTE Radio One: "No decision on that has been made so that's not the case, at least as of today.
"The position, as of today, is that the PUP ends on the 10th of August, but it will be extended. It was never intended that it would just stop overnight, but that it will be phased out.
"The PUP is paid at a rate that is three times higher than Northern Ireland and our nearest neighbour Britain. And I think everyone appreciates that it wouldn't be affordable to keep in place forever.
"It also wouldn't be fair that some people who lost their jobs for example in January or February are getting paid €200 or €300 a week, while some who lost their job since are on €350.
"The idea is to regularise the situation over a period of time, and bring the PUP back in line with regular jobseekers.
"But the most important thing is to get people back to work, and 42% of people who were on the payment are already back to work. I'd like to get that much higher, 100% would be ideal, but certainly much higher.
"And the way we get people earning the money they want to be earning again is by getting them back to work, not by keeping them on different forms of welfare payments."
