The families of healthcare workers who died with Covid-19 in the first phases of the pandemic will be eligible for a €100,000 payment from the State.
Minister for Health Stephen Donnelly has received Cabinet approval for the death-in-service benefit scheme.
The payment will be tax free and will be made to families of deceased frontline healthcare workers.
These will include nurses, doctors, porters, dentists, pharmacists, and workers in mental healthcare settings and homeless services.
The Health Protection Surveillance Centre has reported 22 cases of healthcare workers who died with Covid-19.
The payment will be overseen by the Department of Health.
In a statement, the Department of Health said: "This payment is in addition to any other arrangements a person may have in place or benefit that may be payable on death and does not impact their legal rights.
"It will be made in addition to any other benefit that may be payable and will be open to the families of workers from across the healthcare system who have passed away."
The UK has made a death in service payment of £60,000.
Earlier the General Secretary of the INMO said she welcomed the announcement.
Phil Ní Sheaghdha said the INMO has been seeking such a payment since the first person died and that the union has supported six families through its benevolent fund.
She said further details in respect of how the scheme will operate are needed.
"There is no doubt that this is very welcome and very necessary."
Ms Ní Sheaghdha said the INMO is working with the HSE to discuss the €1,000 payment for frontline staff and that dissatisfaction with the initial proposals have been expressed, in particular the pro rata element.
She said that a large number of frontline workers who were exposed to the virus early on are still suffering from long Covid.
Efforts to scrimp on a €1,000 payment would be received very negatively by those who worked on the front line, she said.
"We believe that if you were working in the health service during Covid, like €1,000 is welcome. It's the right thing to do. We welcome just when it was announced, but it was announced very firmly as €1,000.'
She said that practice nurses should receive the same as state employees but they have different employers.
She added that practice nurses should seek the payment from their employers and she urged GPs to make the payment.
Covid and non-Covid paths in hospitals should remain in order to limit the spread of infection, Ms Ms Ní Sheaghdha said.
The INMO was nervous that the HSE would change this, she added.
Unfortunately our hospitals are overcrowded and this doesn't help, she said.
Speaking on RTÉ's Today with Claire Byrne, she said that the INMO wants the HSE to sit down and discuss planning in place to assist Ukrainian refugees.
We do have to look at what we can do, Ms Ní Sheaghdha said.