The Pandemic Unemployment Payment could be extended under plans to be brought to Cabinet later today by the Social Protection Minister.
The scheme was due to close to new entrants on 31 December this year, but would be extended until the end of March if approved by ministers.
It comes as the Restaurants Association of Ireland has been vocal in calling for the extension of the PUP payment beyond the end of the year.
Its concern - matched by the retail and wider hospitality sectors - is that workers could be fearful about returning to employment next month if they feel their industries will close again in January.