The subsidy, which has so far cost the state over 2.7 billion euro, will now be available until March 2021.
Employers must re-register for the revamped supports, which replace the Temporary Wage Subsidy Scheme, introduced due to Covid-19 in March.
Income tax, USC and PRSI will be taken from source, compared to the current scheme, which sees taxes collected at a later point.
Finance Minister Paschal Donohoe says he had to act before the impact of Brexit: