Jobseekers who refuse to engage with the State's employment service may have their welfare rates cut by €90 from January.
The measure is included in the Social Protection Bill which is before the Seanad.
Currently jobseekers who refused to engage have their benefits reduced by €44 per week, but the cut will more than double from January.
The Government's policy is that Jobseekers claimants have a responsibility to seek employment and engage with the State's employment services.
It is understood the aim is to prevent the unemployed drifting further from the labour market and losing skills.
Minister for Social Protection Heather Humphreys, in a speech to the Seanad, said: "Reductions in jobseeker's rates are intended to encourage compliance with the requirements for jobseekers to be available for and genuinely seeking employment".
She added that jobseekers need to "actively engage with the Department’s Intreo Public Employment Service and, where appropriate, to participate in supported employment, education or training programmes".
She said: "Reduced rates are only applied if a jobseeker does not engage with the State’s employment services".
The minister said: "Prior to application of the reduced rate, the jobseeker will receive at least two notifications inviting them to engage or to offer a reasonable explanation for their inability to engage."
Speaking at a press conference Minister for Finance Jack Chambers said: "If people aren't engaged that has an impact on their core payment."
He added: "That is a continuation of existing policy all be it changing the rate of reduction."
However, the measure has been criticised by the opposition.
Labour Party spokesman Duncan Smith said: "This penalising approach is dog whistle nonsense from the Government."
He added that there should be efforts by the Government to help the long term unemployed get work and to ensure people who are unable to work are supported.
