Cabinet signed off on the move this morning after initially deciding not to proceed.
Baptism ceremonies will also be allowed to take place in August.
However, Taoiseach Micheál Martin says the Government will wait a number of weeks before deciding whether to ease any more restrictions:
"So after the indoor dining, after the one or two decisions today, I'm saying we take stock then over the coming weeks in terms of how the Delta variant behaves and government will keep this under review during August where there will be a number of COVID cabinet subcommittee meetings throughout August to continue to monitor the course of the virus."
