The PUP will be phased out gradually once pandemic restrictions are lifted and the €350 weekly payment will slowly join the normal €203 rate for unemployment benefit.
The PUP is currently due to run out at the end of June but is now expected to continue through the summer months.
Higher dole payments for newly unemployed workers are also likely to be higher in the future to help them adapt.
The Cabinet committee on economic recovery will meet this week with discussions on pandemic support payments.
In an interview with national newspapers, Social Welfare Minister Heather Humphreys says she wants to avoid a cliff edge.
However, ministers have given clear indications that the PUP will continue while restrictions are in place preventing people returning to their jobs.